All Forum Posts by: Justin H.

Where can I find the marketable/equitable interest laws for Ohio?

Their response when I tried to talk to them about it being FSBO is that they would rather wait and see if they can get more for the house if it's listed with a realtor than take my seemingly low offer.

That's what I do but when dealing with distressed homeowners, you have to deal with their banks too.

So what would you suggest if I could come up with some startup funds, but not enough for a down payment on a house?

I don't have a problem admitting I'm the new guy and I'm still feeling things out. I'm just another really excited new guy that has a lot to learn, though I've learned a lot thus far. I've been struggling to find my place but here's how I've been going about it.

I have been working 3 properties for the past few months. I have no way to get a conventional loan for a rental or flip because I can't put down 20-25% yet though I have excellent credit, ~760. (though I'd like to be doing those). My plan was to lowball the bank, find end buyer, do a double closing using transactional funding, walk away with $.

Speed Bump #1: Each bank for each property has required it to be listed with a realtor before they process the short sale package. I managed to find an awesome realtor who is very knowledgeable and supportive of my investing goals and strategies and willing to take a 1% commission for her minimal involvement.

Speed Bump #2: So far one of the properties, the negotiator literally told me "Any offer sent in will be countered at $95k, which the FHA appraiser says is FMV". I had originally offered $60k. This house could sell for $120k ARV, but I don't have capital for repairs. Not sure if this speed bump is bad luck with the negotiator or if it's a speed bump because it's an FHA loan.

Speed Bump #3: I just can't find a buyer for the first house mentioned. With their firm stance on price, I need to sell for $105k to cover expenses and see any profit. I can't list on MLS because it's listed for the short sale package. I've let this one go to my realtor friend and will just be collecting a negotiating fee.

I feel a little lost and not sure what I could be doing instead. I initially decided to go this route because you can invest time rather than money because I have no capital for down payments or repairs/flips. Any advice would be greatly appreciated! Don't perceive my discouragement as giving up though! I'm still continuing mailings and the properties I still have in the works.

Mods, feel free to edit if I can't post links.

I got a voicemail today from www.walkawaytoday.org. Figured it couldn't hurt to check out their website.

http://walkawaytoday.org/faq.php

They say:

It sounds like they get the homeowner to quit claim the property to them, they try sub2 and if that doesn't work, they buy the mortgage from the bank so then they own the mortgage. Am I right? Has anyone else used this strategy?

Gotcha, I suppose that's the part I was missing ;) I'll just keep saving profits from short sales! Thanks!

I just thought about this expense: PMI. If I put down less than 20%, I will have to pay for PMI right?

Thanks for the response. I'm currently working on getting the opinions of some people in the rental market here that specialize in that area (if I can find any!) to find out how good the location is and rental demand. Other than finding people to talk to and trusting what they say, I'm not aware of a good way to estimate rental occupancy for an area.

New to the rental world but I've read up on the 50% and 2% rule and I THINK I understand. Between that and using the REI analyzer spreadsheet stickied in this section, it looks like a good deal but it seems to good to be true. Here it is:

Duplex
Newly renovated
New double pane windows, siding,new furnaces, new flooring, paint, lighting, a privacy fenced back yard and a 2+ car garage and shed

Price: $59,000
Yearly taxes: $1,386.36
Estimated property insurance: $100 monthly
Property management fee: 8% of rent collected
Estimated rent: $600 per door

Finance $55k @ 6% for 30 years = $330/month mortgage

What am I missing?