All Forum Posts by: John Romero

Hi Everyone,

I'm really considering a cash-flow property, (To hold for an extended time period while collecting rent)

It's on the MLS and has been there for a while; The property recently expired and has appeared once again with a price reduction. It has this clause at the end "Short sale, subject to bank approval".

What does this mean? Are there any good strategies to make an offer on a property such as this?

Thanks!!

Hi All,

Is there anyway I can estimate utility cost for a year round house as well as a vacation property?

With the vacation property, the unit will be rented in the summer months, and "winterized" in the off-season. I was told the heat should be kept at 40* or so to keep the pipes from freezing, has anyone had any experience "winterizing" a townhouse seasonal rental? If so, how much does it cost?

I'm trying to figure out what it will cost for myself, or tenants to pay for utilities.

Thank you all :)

I'm interested in getting more involved in the short sale side of real estate; but before I really dive into that i'd like to purchase my first income producing, cash flow property that I can manage myself...Once that goal is reached, i'd like to re-invest in short sale flips, and wholesaling. Really learn that side of the industry and then (years from now) buy/hold some waterfront properties along the coast and southern hot spots where people vacation.

^^But that's down the road, part of the future plan :D


I'm in Hunterdon, NJ
No dependents
Have 50k available in liquid cash right now.
A steady job paying weekly
Excellent Credit.
Pre-approved for a $300k mortgage

And that's my story, i'm looking, looking, looking, but i just don't know if i'm "turning over the right stones". The idea of a HML and then refinancing is interesting. Does anyone have personal experience with this? I off to a great start w/ savings and want to keep going on the right, (profitable) path!

I'm trying to buy a cash-flow property that I can hold for a few years, while a tenant pays the mortgage and a few dollars profit every month.

Recently, i've hit a road block in my search for the first investment property. Conflicting information of where to find deals. I've been using realtors to see homes on the MLS, but i've heard people saying that:

MLS listings aren't good deals, or there's too much competition
Sheriff's sales are bad for the novice buyer
Pocket Sales/Exclusive sales are hard to find
Local connections...I've been to a local RE meeting, and all the wholesalers seemed like sharks, and you need to buy cash.

I have enough money for a down payment, and IMMACULATE credit. I want a cash flow property, where should I look to find deals? MLS, craiglist, sheriff sales? I've hit a roadblock!

What does it mean when a listing on the MLS expires? I looked at a vacant single family home and really liked it. Thought it had some potential.

I emailed the realtor I have been working with and she informed me that the property has expired. How can we go about submitting an offer on this property? It would be great to get it below market, and I wouldn't mind having a realtor along with me if she's able to do some leg work to make the deal happen.

Any thoughts?

______
It's a single family 4 bedroom, 2 bath near a college town. Listed at 199k, and is now expired. Could invest 10k for a rehab and rent out for approx $3000/month on a 10 month lease.

Mortgage would be about $1500/month.

Hi Everyone!

Wholesaling, or "Short Sale Flips" are a popular way for investors to turn a profit in this current market i'm reading... I've been learning a LOT about how these transactions work. From A-B, to B-C contracts, transactional funding, controlling the entire deal yourself, etc... Mostly people talk about the positives, how much of a payoff there will be. I'm concerned with the opposite, how much can I loose if a deal doesn't work out!

My question is, how can you LOOSE money in wholesaling (short sale flips)? It seems that as long as you get a good deal with enough spread, it's a sure bet. What are the negatives associated with this way of investment that could, at a worst case scenario, bankrupt you?

I should have said gross income, not 'profit' on the OP.

So a "short sale flip" is exactly the same as wholesaling?

If so, it would explain how 'wholesalers' are able to get in on such discounted prices.

Thank you for your response.

How would I go about learning the marketing, negotiating, and legal aspects of short sales in more detail? Any solid recommendations to learn the process would be GREATLY appreciated!

I understand this is a business that will take hard work, dedication, and a solid understanding of the process.

Hi Everyone,

I just attended my first local real estate investment meeting. It was a very good experience to meet others, as well as keep up to date with the latest trends.

The group leader, who is also a real estate lawyer did an excellent job explaining topics and engaging the group. He touched upon certain topics such as Short Sales and the majority of the people in the room were making good money with "Short Sale Flips". I understood this as locating sellers in distress and offering a below market offer on their home. Then negotiating with the banks to agree to the offer while you're soliciting buyers to buy the property you are negotiating for more money than you're buying it for.

They use transactional funding "bridge funding" to secure the deal, and make a quick dollar. For example

FMV = $100k
Offer/Agree to = $60k
Sell to buyer for = $70k
Turn a profit of = $10k

Supposedly, the investor never "Holds" the property for longer than a day or two. While they're working out the deal with the seller/bank, they're soliciting buyers so the same day they close, they sell the property and turn a profit.

Am I reading into this correctly?

That makes sense...

So after all the paper work is done, a police officer will be assigned to come to your property and supervise an eviction where the landlord or a moving company will physically remove the tenant's belongings, and escort the individuals from the premises.

I see this process hurting the landlord because of lost rent with the non paying tenant, as well as any damage caused.

Thanks for the valuable insight!