All Forum Posts by: Jeff Coga
Jeff Coga has started 2 posts and replied 75 times.
Post: Best Foreclosure Listing Site
- Developer
- Hollywood, CA
- Posts 81
- Votes 29
Not sure what state you are in but...
#1 foreclosure site, hands down is http://www.foreclosureradar.com...
Why? Because of few things...
1-Most up to date...
2-User friendly
3-Made for Trustee Investor
4-Tracking
5-Upload picture
6-AVM
And #1 reason it helps...
7-3rd party sales (what other investors are buying at the court steps)... meaning that if you know your competition is buying x-price at the court steps... and you are getting it under that price as a via REO, SS, or traditional sale... in MHO you CANT go wrong...
Now...
Dave, the question I have for you is this... What does your "first flip" look like...
Are you looking to rehab flip?
Are you looking to wholesale?
Are you looking to wholetail?
These questions MUST be answered prior to you making a profit...
My 2 cent...
If you are asking... if a "local realtor" is the best way... I would say... Yay and Nay...
When I first started I paid an agent off to get MLS access... then realized... it sucks to do agent work, running comps, etc...
So now I "partner" with agents and let them do all the work...
Either way you do it... work backwards... meaning.. know your exit strategy before you go into a deal (or try to)...
JC
Post: Bank of America Short Sale!
- Developer
- Hollywood, CA
- Posts 81
- Votes 29
BofA is no longer the "black hole"... when I started in SS 2 1/2 years ago... CW days... all the files disappeared in a black hole... now you have some structure to the SS process. Now bofa is one of the best (they all suck... some way and form)
Just remember this... (two things no-one and 95% of folks who does ss don't talk about)
1- Run a GI (general index) search on the borrower to make sure they don't have other judgments against them... why is this important? Because.. Things like IRS liens, personal abstract judgments don't show up on a prelims but will pull up when you run a SI (statement of information search... unless you get this all upfront-which is best)... this means... you will have to get the IRS to do a lien release or negotiate with other creditors for a release so you can close... you want to make sure you're not working on deals where the seller has other judgments. Which adds complexity to the deal... especially when the 1st don't agree to pay the "3rd or 4th" lien and you have to pay out side of closing... in that case.. someone can argue that is RESPA violation ;)... so it's a touchy touchy area...
2 - Make sure home doesn't have MI (mortgage insurance)... these guys will kill your deal if you have MI on the loan. Why? Because... when a lender "ok" a short sale... and it closes the lender will file a claim against the MI companies... when the claim comes in the MI companies MUST pay out... that is #1 reason why MI companies will ask the seller to sign off on ridiculous p-notes... or won't even accept the SS. If the property goes to foreclosure the bank will not be able to file a claim until it sells as an REO... so you're kicking the claim down the road...VERBATIM from an MI company negotiator "We won't accept this ss offer because the claim bank of america will file if we approve this ss" (About 2 years ago MGIC told this to my negotiator... and we had it on speaker phone and I almost fell out of my chair)
JC
Post: Are any investors actively buying at trustee sales?
- Developer
- Hollywood, CA
- Posts 81
- Votes 29
Originally posted by Jake Kucheck:
2) Don't forget to check for all the other liens that might stay with the property, but do make distinctions between liens that stay with the property and liens that don't.
3) Don't by sight unseen unless you're trying to place a ridiculous amount of capital and you can make it up on volume.
4) Don't buy without determining occupancy status and the "temperature" of the occupants.
5) If the guys that show up every day are bidding on something, you probably can't make it work on your margins.
6) Don't get emotional.
7) Seriously, don't get emotional. It will kill you.
Amen to that ^^
Also...
If you are brand spank'en new... do SS instead. Then follow the properties. We buy at the court steps but ONLY if it's a short sale we we're working on and we couldn't stop the sale.
Most of the time other investors don't want to buy it because they haven't looked at it or has tenants...
Can't stress this enough... DO NOT go to the court step if you haven't done a deal yet. You WILL get eat'en for launch...
OR
Use one of the Big 4's(if you're in Los Angeles) to bid on your behalf... if you are looking to buy.
Post: Want to buy my first rental property
- Developer
- Hollywood, CA
- Posts 81
- Votes 29
Originally posted by Scott J.:
How do you find out about the different property taxes on nearby properties? I was under the impression property taxes went by city.
Thanks.
Not sure what state you are in... but in CA... it goes by county. Each tax assessors have a website you can plug and play..
Originally posted by J Scott:
Originally posted by Jeff Coga:
Now if they put a deed restriction on it... you really gotta think of a few things.
#1- Are they making you sign an affidavit... or are they telling you that you cant?
They'll actually put a restriction on the deed that will encumber the title for 90 days. Your end-buyer would not be able to get clear title until the restriction expires, regardless of whether you're willing to accept the risk or not.
Then you use #3 trust. I just read the 1st post and it clearly said Fannie/Freddie... I was probably half a sleep with few beers in LOL
Post: suggestions on how to keep growing
- Developer
- Hollywood, CA
- Posts 81
- Votes 29
Originally posted by Homer S.:
i am in the same boat. but i save up for a downpayment and i buy another one. save up and buy another one. the sooner you strike the iron while hot, the more money we would "hopefully" make.
Have you had yours over 2 yrs? some lenders would consider that income when they are qualifying you for a mortgage.
Example...
ARV is $300
Purchase is $195K using HM w/ up to 65% ARV (my guy does this for me - so you only pay closing cost)
Repairs $40k
Refi out @ $300k w/ 70% LTV = $225k
Cash out put or "skin in the game is now back into your pocket AND the repairs... so now your "break even point" is instant...
Compared to putting 20% + repairs... cash flowing... OK, but when is "break even" 2 years, 3 years, 5 years... remember a true investor is looking ROI on cash on cash/risk/ etc...
But if you just want to park your money then i guess do the old fashion way
Post: Want to buy my first rental property
- Developer
- Hollywood, CA
- Posts 81
- Votes 29
Originally posted by Michael Campbell:
Originally posted by Jeff Coga:
Is it acceptable to work with a realtor when wholesaling properties? What is the best way of finding properties for wholesaling?
Of course. You want to leverage them. Have them double-end the deals if it's an REO. MLS is easy but competative so you need to do something different then the rest of investor... don't do a spray and pray offer method... go build relationships... RE is relationship biz.
Post: Are any investors actively buying at trustee sales?
- Developer
- Hollywood, CA
- Posts 81
- Votes 29
@Jake - having the end buyer(cash buyer) wire money into a limited escrow to buy "any trustee property"... they tell us the MAO, then our team finds the property bid on it... swap the paper name for the buyer at the steps.
I've done the LLC method but... it sucks in CA... tooooo dam expensive. I rather use a trust...
Some REO now allows you to assign it... did 2 like 3 months ago. I almost peed in my pants...
Now if they put a deed restriction on it... you really gotta think of a few things.
#1- Are they making you sign an affidavit... or are they telling you that you cant? In my opinon and my legal counsel... they have no right what so ever to do it... SO.. if my title company insures it... it's a biz risk I'm willing to take... keep in mind that REO's will try to use there title.. if so then they will put a clause on it... so use your title company but be prepapred to pay ALL of the closing cost...
#2 Make offers with a trust - sell benificial interest... really clean way to do it...
#3 Make the end buyer "the bank" - we used the end buyer as our money source... by doing a short form deed of trust assignement of rent... and funding the close.... then we will deed the property to the end-investor (kinda like a deed-in-liu)... in return for a reconvanyce so you're not on the hook for the loan. Real clean way to do it
#4 if you can assign it... just do it in escrow... and have the end-buyer over fund it.
Use a trust... sell beneficial interest...