All Forum Posts by: Minna Reid

In a perfect world appraisers are independent, but from what I've seen, when the bank is paying the appraisals generally come in at about the number the banks need to see to make the loan work.
Market value and appraised value are not necessarily the same number, so to get a good market value on the property you need to run comps on it.
Either way, whether the property is worth 217 or 280, if you're not putting money down, you are still borrowing 100% of the purchase price.
I dont know of any lender that'll consider equity into the purchase loan to save you money, but if you refinance later, the equity will be a factor.

I guess I am freaking out prematurely here. I've had one on the market for 10 days, and one for 4. I'm just having some crazy anxiety about carrying 700k worth of property, with no income til I sell. It's stressing me out. Comes with the territory I suppose.

And when do I drop the price - 2 weeks? 2 months?

I'm not a cash buyer...I don't even know how I could hold the note. I'd do it if it helped me in some fashion while still getting me a profit. But this home is in an upscale town. I'm not dealing with prospects that need notes held. I'm dealing with prospects with credit and I just need to entice them to buy mine...not the next guys. I dont want to hold out for top dollar. I dont have that kind of time. But what kind of time do you give for a retail (ie no owner financing...etc) deal, that you just want to move? And what do you do if it doesn't?

I dont know where you are but if I did that, I'd be in a heap of trouble. All they need to do is cry to the housing authority, or just call the local police, and get in and then sue me. I wouldn't recommend that ever, especially not in a tenant friendly state.

I decided not to even ask...oddly enough she offered - only 1/2 of a percent but hey - I'll take it. I have bought 2 properties from her already and now she has two of mine listed, so I suppose I'm worth a little something extra. Plus I'm easy. I got a yes or no 5 minutes after I walk through a property, and my listings are an easy sell.

Investors - How long does it take you to sell a property nowadays? how long do you give it with no action before you drop the price or add some incentives?
What have you found that will appeal to the buyers to buy your property before the rest? (outside of price and condition)?

If you have one...if it's a lost my shirt story, skip it, cause it's not quite what I want to hear right now. I'm a newbie investor - selling my first rental (one horror story) and my first rehab ( another horror story, though it came out ok but drained me fiscally nonetheless, and I am facing financial ruin if these two don't sell quickly). Pressure, pressure!!!
Anyone turn a harsh start into a great REI career and care to share?

I know how it feels to really want to find that first deal but buying at 80% PLUS the cost of repairs is almost a guarantee that you will lose here.
You need to be buying at a max of 70% MINUS repairs. Is it harder to find those deals? - Yes. If it was easy everyone would do it.

I think there's a couple things you're overlooking. First - you should be paying no more than about $150k for a house worth 220, to make this deal safe for you. Second - Is this house in perfect shape, and needs nothing?
If these people can't pay the rent or can't get funding to rebuy their house (very likely given their current credit standing) how much will you spend renovating this house and holding it before you find a new buyer? Closing isn't free either. How much of that 23k profit will be eaten up there?
I just dont see the numbers working here.