All Forum Posts by: Jim S

Any deal involving a government agency will be painful and prolonged.

My "real job" is I own a large retail store. I have to deal with vendors each day and it always amazes me how inept people can be. I usually attribute it to lazy, appathetic employees. I teach and empower my store employees to take care of the customers needs. You would expect your vendors to do the same as you are their customer.
Maybe you should consider changing vendors? Voting with your $$$$ is usually effective.

Jim

If your buying REOs you should already be buying the property for what it is.
Put yourself in the banks position. They have a toxic asset they want to unload to the buyer who is most likely to close. Low EMDs, contingencies and due diligence periods are a red flag to a problem closing.

I offer $20,000 EMD and pay cash for the properties. We list closing in 30 days. We go in with zero contingencies.
If you are serious about the property why not put the $$ in the EMD?

Closing today on a property that is in pretty good shape compared to what I normally see and buy. It started at $300,000 which was wishful thinking on the banks part. The arv is around $350,000. After 30 DOM they dropped the list price to 275 and then to 255. I offered 235. The banks realtor came back and said the lowest the bank would ever go was 245. He stated the bank would rather sit on it. I held firm at 235. Got a call 2 weeks later asking me to resubmit my offer for $235,000. House needs $35,000-$40,000. House already has new windows, nice landscaping and a new roof. The old owner took care of the place. We start work on it this Friday.

If it drops 10", why not build a plywood subfloor with 2x4 and 2x6 floor joists to level the basement out? Just start with the plywood flat on the concrete at the high point and slowly work your way to the low spots. It would make replumbing the bathroom much easier and running any electrical would be simple.

Congrats. Looks like you will have no problem renting the property. My only concern is your front steps. They look like a potential liability issue.

Looking into what seems to be a good deal. I have always invested in single families so a multi unit REO with tenants is possing some issues.
The building is a 4 unit and it has been on the market for about a year. The bank is now motivated to unload the property. The agent has zero info on the building and the exsisting tenants have declined showings. The agent has no idea if the tenents have even been paying rent in the past year or anything about leases.
We are worried about establishing any info on tenants if we buy the building. Basically without a lease how would we go forth with the tenants? I understand we would have to give them notice and try to sign new leases but they could play hard to get.
Seems like a big, black hole.

You can always add 10%to you budget and a few extra days to your timeline.

I am not in California, but we settle on REOs in 3-4 weeks, take 4 to 6 weeks average for rehab and usually receive an offer in 21 days or less. Then you wait 30-40 days for the buyer to close. Take $$ and repeat process.