All Forum Posts by: Jodi M.

Thanks for all of your ideas :) At this time we are not desperate to sell the house. In fact it's currently rented to another tenant and we are waiting until I have my RE license in June to list it. The family that wants to buy it actually rents a different house from us and have been great tenants that pay on time. He has a decent job and can afford the house but they do not have any cash saved to put toward it. I would finance the down payment but I don't want to do a rent to own/lease etc at this time because I want to use the profit toward other things.

They don't have a bank so they went to the lender I use but he isn't able to do this one. I will look into finding them a good FHA lender or mortgage broker etc. Thanks for the ideas on forms and places to send them!

We just finished a flip house and took a current tenant through. They fell in love with it and went to the bank the next morning. Unfortanitly they have low credit and didn't qualify.We are willing to finance up to a 10% downpayment. Are there any banks or lenders that would loan to first time buyers with credit around 600? Selling price is $70,000. Thanks for any ideas!

The offer was submitted to the bank on Tues and accepted on Friday. The bank told the realtor they want to close by the end of the month. Hopefully they will follow through with that but I learned from our first foreclosure that dates don't mean much when dealing with banks.

Wayne Brooks I don't know the prior accepted offer. I know it sat on the market for quite a while the first time and was just relisted in March. According to the listing agent due to the failed inpsection they did drop the asking price by $5,000 when they relisted it. Hopfully it will go a little smoother than most short sales I've heard about, if not we don't need to have it at any specific time. Good or bad it will be another learning experience.

Wayne Brooks Looks like one of your ideas is exactly what happened. Talked to the listing agent and another offer fell through during inpsections. When they turned the water on they found water leaking through one of the walls and with the recent amount of rain they found the roof leaking over a porch. We do almost all repairs ourselves so we are still going ahead with the offer. The agent thinks they will accept our low offer and close in 30days (seems to fast to be true). We are planning to keep this one as a buy and hold.

Offer $40,000
Required repairs $8,000
ARV $80,000+
Rent $900/month (which is high for this area)

Thanks Ned, The listing agreement states the lender will approve the selling price within 48hrs. It was also posted that way on MLS. We are hoping by having that stated it will go fairly quick. I know none of them really go quick but hoping it's not 6 mo. Our agent has done several short sales and her office does quite a few so I'm hoping that will help. I don't know who the lender is yet, but I will ask that when I talked to her again.

We wrote an offer tonight on a house listed on the MLS as being subject to short sale approval. It states that the selling price will be approved by the lender within 48hrs. If we agree on a price with the owner what should we expect from the lender? My agent wrote it for a 60 day closing but I've heard it can take up to 6 months or more. What are the lenders looking for in the offer and what are the chances of closing in the 60 days? Thanks in advance for any ideas.

Found a bank owned house that was trashed in a very good neighborhood. Bought it for $14,500 and the lot next to it(due to property line issues) for $1,500 put about $29,000(with commision/holding costs) and 5 months into the rehab. Sold it above asking price for $67,500 with DOM being 1.

Joe Capobianco Forclousures can be scary. Looking back at our 1st year a quote that stuck out to me was our banker saying "be careful, buy houses cheap, not cheap houses. I wish we would have (and mostly will in the future) bought rentals that needed less or no work. We started off buying bankowned properties(the first 3) that required a ton of work. They took a lot of time to finish which meant high holding costs.We thought we were doing it right because they were cheap. They have quite a bit of equity in them due to the work but there were always surprises. We also bought 2 that needed minimal or no work and were ready to rent in a weekends time. The ones that needed little work currently have the same return as the ones we put all our time into. So next year with the rentals we need to work smarter instead of harder on the rentals.
As for the 2 we did as a fix and flip buying low cost bankowned properties worked great. We put a lot of time into them but with some creative banking and the time of year(no heat/air on etc) the holding costs were not to high. I would deffinitly do that again on the right house.

Good luck :)

.

One to add that we learned our first year...Never promise a date for a property to be ready when it is still in the rehab/contruction stage. Something is bound to come up and require more work and time!