All Forum Posts by: Jeff Morelock

Contrary to what a lot of people think, banks don't set the price of properties based on the past loan. They base their prices on what REO listing agents suggest through a formal process know as a PBO or Brokers Price Opinion. Banks usually get at least two per property from completely different agents. (Agents can do BPOS - they don't have to actually be brokers)

Banks want to get the best possible price in the shortest amount of time, but they are no longer allowing investors to steal houses at 40% or lower off of retail - no matter what the gurus are teaching. 

Banks are also instructing us REO listing agents to give owner occupant buyers first shots - sometimes not even allowing investors to offer on a property for 15 days after its listed to give owner occupants time to line up financing. Banks are also getting into the rehab business through their REO listing agents, who submit repair lists and make sure the repairs get done.

If a property is in a neighborhood where there are a lot of REOs, banks are even sitting on properties so they don't flood any particular area with REOs which will cause prices to drop. 

It is still possible to get a good deal on an REO - especially if your a buy and hold investor, but if you're looking for huge paydays and swinging for the fence, you'll need a time machine to return to 2010 & 2011.

As Brent P suggested, find an agent who specializes in REOs - especially one who lists them becasue they get to keep the whole commission when they sell you one of their REO listings.

Be prepared to wait though, because sometimes it can take a month for a bank to respond to an offer, even if the offer only give them two days.

Have you considered selling it using a lease/option?

Absolutely shop around. My bank (or any bank) would be the last place I go for a mortgage. 

Ex-cop here. I'm thinking drug dealer/marijuana grower

Like some of the others who have replied - great job on saving $25K! 

With that amount saved you can buy your first flip through a hard money lender. I doubt you'd have to put any of it down, and credit is not an issue when you use hard money. Hard money lenders do like to see a cash reserve - which you have.

If you put it into a Quad you may have to wait a little while before doing your next deal. Your bank may want to see some "seasoning" before they'll loan on the property, and you'll have to find one you can buy with enough instant equity to pull out.

I believe I saw a BP podcast on buying property with hard money - I'd check that out if you're not familiar with that topic.

I am looking at properties today in Pasco county and there are some deal out here.

Welcome.

Owning a property close to your residence is a good idea if you plan to manage it yourself. 

If you're like most doctors I know, you may not have time to manage it yourself. (I'm living in a nice 3/2 stilt house on 86 acres for free because my doctor does not have time to manage the property lol) Besides, do you want to deal with a clogged toilet at 3 am when you're going to have a waiting room full of patients in the morning?

Back to your question though, most beach properties are desirable, but you're going to need better insurance - hurricane season is almost here - and you're going to have to pay more for the property itself.

When you're looking at multi-family properties, you should be able to find some with at least partial seller financing, so you won't have to tie up as much of your credit and won't have to buy a property all for cash. You could get a couple B or C rated properties using this technique.

Lastly - stay the heck away from Zillow and Trullia lol.

Hope this helps - feel free to message me if you have more specific questions.

Jeff

I've had success turning vacant Florida land into private shooting ranges. Florida's gun and range laws are very range friendly though. I've heard that MA is less gun-friendly.

Hello David

I'm looking too. David W - thanks for replying I will see if I can find Tom Martino.

Most cities and counties have ordinances against these signs. I used to use then until a fellow BP member pointed out that we are breaking the law by posting them, which makes us criminals. 

I don't want to go into business with someone willing to break the law, and neither do most honest people. 

I've used my last bandit sign, and I will not call anyone using them - no matter how good the deal looks.

Was interested until I saw I had to pay for draws - unheard of in Florida.