All Forum Posts by: Jeff Warner

Originally posted by Steve Babiak:

Just my opinion here: There will be two closings, and everybody buying in that chain of title will be required to comply with the code enforcement restriction. The restriction requires proof of funding to fix it up to a contractor's estimate, so that will be required by any buyer - including the "B" middleman.

Figure out some way to not be in the chain of title to avoid this.

That's an interesting point Steve, I think you might be correct because you would have to follow all the rules to close the A to B side of the transaction. That makes it a little more difficult but still do-able.

If it were me I would make sure I had a HML lined up so I could close on it myself in case your buyer backed out....that is if the deal made sense. One positive is that jumping through the extra hoops will score you points with your buyer.

Jeff

I agree with Ryan. Dealing with private parties is a great way to start with little to nothing out of your pocket.

Another bonus on dealing with private parties is that most investors are not looking at or sending letters to these homes so you may be the only offer they get.

With that said, all the deals in the world will do you no good unless you have a solid understanding about the property value's in your area. Spend time learning the COMPS for your market so that you can make intelligent offers based on the numbers, not a guess or a hunch.

I know that a Realtor can provide COMPS for you but I don't recommend relying on a Realtor to tell you what a home is worth. Learn the market and you won't need a Realtor to pull COMPS for you.

Jeff

Originally posted by Greg Park:

I can use this Hard Money PoF that the Reo rockstar provides to do this? The inspector will see this, so I'm wondering how we would do a double close on these. Will the end buyer need to get it approved as well? So confusing.. Thanks

Unless I'm missing something here your C Buyer doesn't need to provide POF since he will be buying from you, not the bank. Your buying from the bank therefore you need to provide the POF for the A (the bank) to B (You) side of the transaction.

Ideally your B to C side of the transaction will be all cash or HML. I agree with Mike about transparency, but ultimately your buyer is going to be the one to Rehab the home so they need to be the one dealing with code enforcement.

Jeff

Originally posted by Troy Michaels:

i have total free time during the day. is it better that i get out and drive my target areas or use online resources or both?

Troy,

Both. Online resources can give you the Lists that you need to direct mail to, not a solid understanding of the neighborhoods. Driving through your target areas is the only way to get a feel for the neighborhoods, that's why you need to be doing both.

Jeff

Originally posted by Stacy Romero:

These are all great ideas. Thanks everyone; you've been a big help.

Don't forget to vote for the posts that are helpful :D

Jeff

Originally posted by Eric Vernica:

Coupule questions for some or the responses to the question in regards to the minimal down payments that are being accepterd for lease options. When the buyer exercises the purchase option do you credit them back the small down payment? Unless the buyer is in a USDA eligible area or is a Veteran using a VA loan then a minimum 3.5% down payment is required to qualify for an FHA mortgage. Is the buyer responsible for the remainder of the down payment at the time of the purchase?

If they exercise the option then the down payment needs to be applied to the purchase. The idea is to set the tenant buyer up with a mortgage broker right away so that they can monitor their progress and help them clear up the negative items on their credit report. I mention the credit report because that is the main reason they are doing a lease op in the first place.

Now as far as FHA and VA loans, those don't require big down payments as you mentioned but the idea here is to not set up those type of loans. In the past, and maybe people are still doing it you could show 12 months of good payments and that would qualify for a REFI as opposed to the tenant getting a new mortgage.

Another thing is that if the home has appreciated since the tenant buyer moved in (not happening in most of the country right now), they could show the purchase price vs the value and some lenders would count that equity as fulfilling the down payment requirement.

Things change rapidly so double check that info, I have not focused on Lease Options for a while now so I'm sort of out of the loop as far as the lenders flexibility at the moment.

Jeff

Originally posted by Joshua Dorkin:

Please stay on topic, folks.

Sorry Josh, back to the topic: Who flips REO Properties

Jeff

Originally posted by David Berkowitz:

I completely understand your concern. I work for a compnay called MultiGroups based on Wall Street in NYC. It is my job within the company to locate nationwide investors and sell off our inventory. I know that there are unfortunately many people in the business that misrepresent themselves and there available inventory. When I say I have inventory I am referring to properties outright owned by my company, not someone else property that I am trying to flip. Thanks for the advice on my personal info, I will take care of that very soon.

Thanks for your understanding. I'd be happy to look at anything you have in Oregon, more specifically southern Oregon.

Jeff

Originally posted by David Berkowitz:

[SOLICITATION REMOVED BY ADMIN]

Not to be rude but solicitation on your first post doesn't look good to a lot of people. There have been several people that have claimed to have bulk REO's on here and never came through. I know for a fact there are several serious buyers on this forum so if your legit you should have no problem moving property.

That said, it might be best to give us some more info on your company and your involvement in the deals. In all honesty I don't have the capital to buy REO's in bulk but I am interested in buying them one at a time, possibly 2 at a time if the price is right.

Understand where I'm coming from, your first post and your profile is not complete, etc. I'll give you the benefit of the doubt and allow you to fill in the blanks with some more info.

Jeff

Just bumping this post back to the top, I thought it would be helpful for people who have not seen it.

Jeff