All Forum Posts by: Account Closed

I'm selling a house I own in Florida (tenant occupied). It's a great property, but the sale is off MLS, and needs to be an investors only, cash deal, since it's a settlement home.

Already got one offer from cashgeeks. Anyone work with them? I'm concerned that they didn't acknowledge that they are aware of the settlement on the offer, and if I accept the offer I lock the house for other offers while they inspect, and then they come back with a much lower price.  The offer they gave is already well below market value. 

Any tips?

https://www.biggerpockets.com/...

I have been saying for a while that I don't foresee the mortgage forbearance and foreclosure moratorium turning into a foreclosure crisis. There are three reasons:

1. Some people have the money ,but took forbearance as a way to save us cash. They are on sound financial ground and they will either pay the balance due or work out a plan with their mortgage company. They were never in trouble, but taking forbearance makes it appear they were. 

2. Some people will choose to sell. In most every market prices have skyrocketed since COVID. Even if you purchased a property two years ago, you probably have substantial equity. Why would someone let a property go to foreclosure, when they could just sell it and walk away with cash?

3. The federal government is dedicated to stopping foreclosure and has multiple programs in place to help people. I included a link to details of the programs, but it includes some of the following:

a. FHA will require mortgage servicers to give no cost options for borrowers to resume their old payment without forcing payment of missed payments. For borrower unable to resume, they will offer up to 25% reduction in payment. The outstanding balance is added at the end of the loan as a zero percent loan attaching a subordinate lien on the property. This means they don't have to pay the money back until the property is sold or property is refinanced.

b. Direct mortgage payment assistance through the Homeowner Assistance Fund. This is almost $10 billion allocated to pay mortgage payments, utilities and insurance. Home owners can use these funds in conjunction with other programs to wipe away unpaid bills with no repayment.

c. Government is created a new security product for modified loans through GNMA that allows loan modification out to 40 years. This allows borrowers behind on their mortgages to extend the term and lower the payment.

COVID is the biggest money grab in US history, handing out trillions of dollars in assistance and hundreds of billions to the housing industry. There is no way for this to turn into a crisis. Look at the facts:

- People have not had housing expenses for a year

- Even those out of work had considerable government aid during that time

- Employers are begging people to come back to work at higher wages today

- Those who need to resume payments don't need to repay the unpaid money until they sell

- Some people can get their debt paid and others can get their payment reduced by 25%

- Loan terms can be extended to 40 years to reduce payments

- Over a hundred billion is being passed out to pay landlords who were shorted rent

- In most cases the house is worth far more than before the pandemic, so you have an asset worth more money

I just don't see how this ends badly in the short term. As far as the government spending, that will have medium to long term affects. 

Here are the details on the programs available.  
Fact Sheet: Biden Administration Announces Additional Actions to Prevent Foreclosures | The White House

Howdy! So I got a couple days of free time ahead of me and would like to practice analyzing properties. I have a grasp on what different expenses are, but would like some guidance on how to properly estimate expenses for different areas, and where to even get the numbers for utilities, property taxes, etc. 

I know of the BP calculators, but are there any others out there y’all would recommend?

Thanks

Anybody have experience with dealing with a seller that refuses to sign final closing docs on a property and going through the legal process in TX. Back story: I have a 4 plex under contract for an FHA 203k loan that we have been working on for about 4 months now and I have about $5k in the deal for contractors, appraisals, inspections etc. I signed and wired my cash to close on Friday last week. Seller was supposed to sign on Saturday Loan was to fund on Monday. Seller is a Mexican National and as such is required to let IRS hold 15% of sales price for any tax problems until next tax year. Seller lied about signing and we are at Wednesday with my credit report going out of date tomorrow. Any advice would be appreciated. I feel like all the work on the 203k was enough for this, and it's super deflating to have the rug pulled from me right at the 1 yard line.

@Mike 

@Account Closed

Thanks for the information:) You put a lot of time and effort into your response and that is much appreciated.

 How does an investor scale up into multi family without joint ventures or syndications. I am wanting to own multi family without other investors. I have been doing single family for years and technically I am doing OK and would not have to scale up to multi.  For the challenge I would like to scale up into multi family and keep the units long-term.

Investment Info:

Condo buy & hold investment in Gatlinburg.

My wife and I bought our first investment property in Gatlinburg, TN in March 2020. This year in January, we purchased our second - which happened to be directly next door to our initial investment. We have been netting an average of $2500/ month from each unit on Airbnb/ VRBO

What made you interested in investing in this type of deal?

After hearing several podcasts related to short term rentals, we investigated the best areas in the country to purchase them and landed on a few with Gatlinburg being the one that suited our price range.

How did you find this deal and how did you negotiate it?

I found both of these deals on Trulia and put in backup offers (very competitive market) with the sellers personally. In each case, the financing fell through for the initial buyer and we were chosen to pick up the deal.

How did you finance this deal?

Traditional financing using 10 and 25% down respectively.

How did you add value to the deal?

I included an escalation clause in our first deal and wound up having to pay an extra $15K out of pocket. In doing so, we satisfied the seller's ideal sale price.

What was the outcome?

Both properties have appreciated dramatically and our cash flow from the first deal alone has nearly paid off our original down payment. When we decided to do a Cashout Refi, we'll be able to pull out all of our initial investments and a little more to roll over into more deals.

Lessons learned? Challenges?

In both scenarios we had to really work hard to save additional money to make the deals work. The first was very scary having to come out of pocket an extra $15K, but it worked out really well in the end. For the second deal, we had to come up with an additional $7K for reserves in a month, which meant I was working at my hospital 6-7 days a week 12 hour shifts so we could satisfy the requirements of the bank.

How can someone scale up in multi family from single family without syndication and partnerships? ( I’m not talking about 2-4 units)

I did the partnership thing when I first started out and I can assure you that I would prefer to own properties with just my wife and I.

We’ve got several properties in the Huntsville area, as far as zip codes go I would recommend taking a look at 35803, 35810 N, 35810 S, and 35816. I’d also suggest taking a look at Athens, Decatur, and Madison. We like these zip codes for several reasons- property appreciation, high renter populations, good employment numbers, and relatively low barriers to entry compared to high dollar markets.

I'm in about 5 different investment groups on Facebook and they all complain about wholesaler calls, wholesaler text, wholesaling postcards, etc. As someone who aspires to be a Buy and Hold Investor, I try to put myself in the other person's shoes when making these phone calls asking someone to sell their home for 40% below market value....and I can't picture a world where an investor would be excited to take that deal.

Seriosuly wholesalers, how many calls are you making a day, how many postcards are you sending out, how much money are you spending on ads and gas to Drive For Dollars? Are you texting? Is wholesaling worth it in a hot market? I can see how this was a lucrative business model in 2006-2012. But now...how do you stand out? 

I'm 4 weeks in and 0-25 but I've reached out about 200 times using different forms of communication.