All Forum Posts by: Jeff Morelock

Unfortunately banks and assent management companies are actually pacing themselves when it comes to releasing the REOs on their books in an effort not to re-flood the market, despite the number of them on their books. 

The banks I list for are going so far as having me get the properties rehabbed prior to listing them, so they can reap the rewards. I guess they got tired of investors low-balling them only to make big profits off of a little rehab.

Beyond that, more and more banks are drinking the "neighborhood stabilization program" Kool Aid, so bulk packages are hard to come by.

Hi David

I may be able to offer my 2 cents worth but I'll need some more info. You said the property is in pre-foreclosure, is that correct? If so, how far behind are the payments?

I'll also need to know how much the property would be worth after rehab. 

Thanks

No deal with those numbers. 

If you have not seen the house go take a look at it. If its in the condition the son claims it is have a title company do a title search. If the owner is behind on his mortgage he could be behind on taxes or have some liens on the title too. 

Then try to lock it up with an assignable contract. Some banks will accept assignable contracts and some won't. It won't hurt to try. If you get a contract on it, you can assign it. 

If the numbers are what the owner says they are, this house works for a 65% LTV hard money loan all day long with some extra $$$ for a little updating. Despite what the seller says it probably needs some work. Once you get it under contract you could get a hard money loan from on of the lenders who advertise on BP.

Don't put too much on the assignment fee. I assign it for $7K, unless $10K is normal in your area.

Good luck & keep us posted.

I agree with Jeff. Get yourself a buyer's agent. You won't have to pay him or her out of your pocket and they can get you all the info you need.

You can also get most of what you put in your post by googling Sarasota County Property Appraiser and doing a free search on the county website by property address.

Hello Armand,

Don't forget about us yanks lol. We know our backyard. I'm in Florida and there are deals to be had.

Jeff

I have an LLC that buys properties, but of course I have to disclose that the owner of the LLC is a licensed real estate agent in the contract.

But yes I do buy properties as well as find them for other investors.

Its not the good ole days around here but the market is hot. Investors and even retail buyers are paying full asking and sometimes above here in the Tampa Bay Area.

Other than REOs or waterfront luxury I don't list properties very often.

You're correct in mentioning the REOs that hit already rehabbed. The banks and asset management companies are now having listing agents arrange to have the properties rehabbed before they hit the market, which hurts the buy & rehab investors. 

Since there are so many wanna-be investors who can't get funding out there, agents and/or buyers will usually consider your offers more seriously if you already have verifiable financing in place.

If a lender wants you to pay for a POF letter... run away.

You also have to be careful because many "gurus" and companies have over-saturated the market with the same POF letters they've sent out to 100s if not 1000s of their students. Agents are starting to spot these and will not accept them as true POF.