All Forum Posts by: Account Closed

I just bought a property for 20k and table flipped it to a retail buyer at a little less than 30k, AVM should of been a little closer to 35k, but I think this property fits into what you are asking about.

Anyways, this particular house sold for 40k back in 96 and resold in 04 for 75k. I gotta believe at some point this house will find its way back to 1996 pricing...and I would think in the next 10 years it could find a price somewhere in between that and 04 pricing.

Property is not in a war zone, block home built in the 70s with taxes at 500/yr. 3/2/(1 carport no garage). I think it is a very suitable strategy to attempt to sell this to a tenant at some point.

I gotta believe this situation occurs over and over again in thousands of other cities across the country...Or at the very least, over and over again in many florida cities.

Chris major flaw in your theory.....what if a property in wake was part of a bulk sale with 200+ properties in other counties. Yours would look like a normal sale. The data you were working with wasn't large enough. To be sure, check every sale by fannie within your state, and lets say another heavy REO area...like AZ CA or FL, then cross reference to your list of buyers from fannie.

Anyways, our office handles fannie mae listings and we lost a few to a bulk sale (typically scratch dent properties). They sold for i think half the listing price (that we couldn't get). In my particular situation the 2 assets we lost ended up being resold about a year later by a fund that ended up selling for a 500 dollar loss...they had to pay closing costs on both ends i believe and took a small hit on top of it. I'm guessing other areas were profitable, but mine wasn't.

I have the contact info to purchase a bulk deal from fannie. It isn't really all that attractive though if you ask me.

I think its like 250 properties in a bundle, average price point is 20k. Spread out over maybe 10 states. Pulling this data from about a year ago and my memory isn't known for being that accurate.

Should Clarify i guess.

Wondering if i owe the bank to tell them their agent is screwing up an already bad situation for them. Or just circle above a few times and dive like I'd treat any other bank in this situation.

So back in March of 09 my partner and I purchased a property for 32.5k and turned around and flipped it a few months later for 115k.
In late 2010 it slipped into foreclosure and the bank now owns it.

Should I Feel guilt over this?

Next question, and it gets a little more clouded i guess. The bank that took this back listed it for sale with an out of the area realtor, who happens not to use the local MLS. Because of this the property dropped from 70k down to 35k with nobody buying it to date. There is no sign for sale. I'm thinking about offering 27k, i figure it's worth about 60k-70k

Should I feel guilty that I'm double dipping on this address?

sooo yeah, appreciate all the info. Guess I'll stick to what I know and what works :)

Sounds like this makes the asset less liquid.

Mitch Stephen wrote a post that basically talked about how he flips.

Find/Buy/Fix/SellOwnFin/SellNote

Was curious how many other people do similar types of deals (mainly the sell note at end). I've always done it find/buy/fix (if needed)/sell. If i could owner finance i think selling would be a ton easier while still getting a qualified buyer (maybe someone putting a heavy down but just lost a house to foreclosure etc).

Assuming this situation, (out of thin air)
Reo purchased for 40k, put 5k into repairs (lets say carpet paint etc). Expected normal sales price is 65k, owner financed off for 80k with a 25% down payment at 7.5% interest. 10 year balloon.

What would I expect to sell that note. Any forums that you guy can think of that deal with note selling?

I'm guessing you are single.

*cringe*...

Yes tammy, if you have an agreed on price you would be able to put it on the market for more and keep the overage. How much did you guys spend on the lien (not that it matters i guess) but more important how much longer till the foreclosure ends. I've got friends who actually buy these things (not in the orlanda area though) and they rent the houses out till it forecloses. Then the tenant does a cash for keys type deal and they stick the tenant in another house.

You might also try to sell the judgement back to the HOA who can collect their fees when the bank takes it back. They only did the foreclosure because they wanted control of the house. Usually to maintain a pool or something like that.

If nothing else, tell the bank you want them to pay you the amount you paid for the HOA lien, if they refuse let them know that it would make sense to recover the cost by selling off pieces of the house. it also would be quicker for them to take a deed from you than finish the foreclosure.

If you want more info call me, i buy on the court house steps and i'm sadly well versed in the mess you just started to play in.

By the way, for some good advice, if for some reason the owners do a mod and/or the foreclosure gets tossed out, you get to live there even longer :)

My only concern about giving an incentive to finish early is they might rush the task and cut corners. Very cool in theory though

That said, my projects always take a lot longer than I think they should. My wife claims that i would only be happy with the speed that Elizabeth Montgomery works.

So you were buying this with a quit claim deed? Not sure how 12k in back taxes would become your problem assuming you were getting title insurance.

There has been a lot of times as an agent I've reduced my commission and lowered a sales price. I've also done credits on the hud statement with part of my commission to pay closing costs. Long as it is fully disclosed to all parties it typically isn't an issue. When you get a lender involved it starts to get a little more complicated to do it legally.