All Forum Posts by: Account Closed

The first rule is to only talk to a motivated seller. I am not sensing a pinch or pain to sell. A seller who wouldn't as much as name a price essentially does not warrant much attention. 

He has had the property for a few decades, apparently without a mortgage on it, pays taxes on the property every year but decided to leave it vacant for the last 6 years just so he wouldn't deal with renter headaches. The run around -- just might be another form of therapy for him. I'd rather go fishing or go get a tan.

Regarding estimates, those were from his contractor -- if what he said was true; but I can't go as far as starting to spend money on inspection when he has no real intention to sell.

A few things here.. if you were to buy the building for $130000 and got a 30 year 20% loan, the monthly payment would be $2172.32 per month; if you had no expenses, with income only being $1400 per month, that would be a - $772 per month. You would have to raise rent for each unit $1086 per month (assuming you had no other expense), just to pay the note at 20%.

If the best rate you can get is 20%, based on the monthly income from the property of $1400 per month, the value of the property would be: (1400 * 12 ) / 20% = $84000. In reality this would be lower because there are other monthly expenses.

You have to know what the other expenses are per month to determine both the capitalization rate [yearly NET income / building cost ] and gross rate multiplier [Cost / Gross Rent per year]. Then compare the rates with what is 'standard' in the market where the property is located.

lol... my concern wasn't on what the HUD was doing or what specific formula you felt you were working on. My question was similar to asking any person or business entity what their cost of sales or profit margin was. Its a number and different question from asking a business to share a business secret of some sort.

I can see what the initial HUD requested bid amount is for any property in any city and can determine what the percentage is based on the initial bid and property ARV; but the actual bid that gets the property may be either lower or more than the initial amount requested by the HUD.

The question was on what you may have seen your average percentage on HUD purchases to be. You have no obligation to disclose anything though.

Somewhat of a side note... regarding the percentage of properties that you acquire through HUD, that is a significant number.

Do you find the strategy of getting properties through HUD to be at a material discount? What would you say has been the average percentage discount from the ARV that you have purchased most of the HUD properties at?

Where do you typically get the non HUD inventory from?

I think if the buyer of the HUD property has an agent, the fee is split between the listing and buyers agent. If the buyer doesn't have an agent, then the sellers agent nets the entire fee.

I think you are trying to determine if you can (being a realtor), represent yourself to get the the buyers agent fee or you want to waive your fee and utilize it towards your bid amount?

Depending on who you talk to you might get a different response but a HUD listing agent would probably be a good source. I have heard some agents say they have been paid for representing themselves, some say it is a matter of disclosure etc.

Is there any requirement as a realtor that you disclose that you are an agent in any transaction especially if you are either the buyer or seller in the transaction?

Rehab team? Sounds serious. Typically you would utilize hard money if it was a 'non owner occupied' rehab -- meaning the intent would be to rehab and sell to a retail buyer. If it is to be an 'owner occupied' rehab (meaning not for flipping) and if there is a similar FHA203K rehab program in Canada, then it would make sense to have a bank provide conventional funding. 

A local bank in Canada would probably be better able to tell you what sorts of rehab + conventional lending programs that might be available there.

Not sure the FHA's jurisdiction extends into Canada for a 203K. Perhaps she could utilize a similar program in Canada?

Depends on what your strategy really is. If you buy at a good price and can price the property correctly, a low inventory should actually be a good thing from a sellers point of view.

Good to hear from you! Uruguay is usually on the map these days for its football.. especially with the recent performance of Luis Suarez, Forlan etc.. Is there a site where you can view some sort of inventory of listings in Uruguay?

What is the current rate and term on your mortgage and what rate are you trying to get? You have to realize that your current lender has no incentive to help you refinance and get a lower rate. Talk to other lenders. Might have to look at LendingTree, BankRate etc.

If you are only looking at a few lenders in your neighborhood, they might be sticking it to you for some time. You have no guarantees about what the rates will be tomorrow (except guess what the Feds are doing/going to do and how it is likely to affect rates) nor an insurance policy to 'lock in' a credit score.