All Forum Posts by: Account Closed

dhinderliter,

If you like I could send you an ebook that I bought, which has several good links to sign sites, voicemail sites, comp sites, etc. Let me know if you want it. My email is [email protected]. Mike

Wheatie,

I forgot to ask: So now I know that Sub-to is not the technique to use for a short sale. then, hypothetically, what would be the way to proceed on a pre-forclosure like this with high equity? If I wanted to try a short sale, on this or another deal, what is the best scenario to have? What do you look for, just simply the maximum equity as possible and then try to short sale it so you can pay yourself and make a good deal for the end buyer? Would I do a purchase and sale agreement, that says it is contingent upon getting a short sale accepted by the lender, for a specific amount? Thanks, Mike

Thanks Wheatie,

I was referring to After rehab value when I said ARV. I guess I need to get my terms straight or else spell it out. I have not gotten my buyers list together satisfactorily yet. That is one of the missing pieces in my getting started. I will be attending the better REI group meeting next Monday, so hopefully those people will be helpful. Also, meeting with an exxperienced and investor friendly realtor later this week to pick his brain and see if there is a way we can work together in a mutually beneficial way.

I have plans to market to buyers in several additional ways. I am fearful of getting involved in talking to sellers without a clear knowledge of how I would sell. But, in my effort to "jump in" to REI, I started sedning out letters to owners in foreclosure. I prefer the safer course of having some buyers and their parameters, and then going in search of sellers with matching dealpoint potential.

As for this deal, I think the high equity and lack of time to work something out, I will just let it go, and seek other deals that have more room for profit. It is exciting to get into a real situation! It also felt good to speak to a seller in trouble - I think I will be able to help people (and myself) in this business. Thanks,

Hello,

If the house is vacant, you might consider a cosmetic rehab, if needed, and rent it for a while until the market improves. Or, maybe sell it on a rent to own basis to a buyer who might have 5-10% down.If you can't compete with comparable retails deals, then you need to offer great terms like owner finance. Good luck,
Mike

Mnmoney, could you please check out me post in this section? I would like to get your take on my deal. Thanks, Mike, a fellow twin city investor

Hello,
I have started receiving my first responses from a mailer I sent out to people whose SFH loans are being foreclosed on. I got the names and addresses from a foreclosure newspaper here locally. The woman told me the following:

-She bought the house for for 171,500 in 12/06.
-Her loan payoff is about $151,000.
-She says it needs some work, but mostly cosmetic.
-She says the payments are 1,500/mo. PITI. Taxes are current.
-She says the Sherrifs sale will be on 1/22/08.

I am trying to make this a first one to see if I can make an offer that would make sense, knowing that it might just be a learning experience.

I think values have gone down by about 5%, so let's say the deal is as follows:

Market Value: 163,000
Rehab Cost: 5,000
ARV: 158,000
70% ARV: 110,600

Short sale needed: 40,400

Is it possible to get qa bank to accept a short sale to this extent? Would I make a subject to offer to the seller for the amount of her loan, subject to the existing financing, and contingent upon being able to get a short sale done for $40,400?

Then, is there enough time to actually do the short sale and identify a buyer who would take this deal for a wholesale assignment fee? Mnmoney, what do you think? Thanks, Mike

Hey,

The best way for the least cost seems to be placing bandit signs in areas you like, to attract sellers. I am new, so take this with a grain of salt, I think it sounds like I am in the same level as you at this point. I decided after reading a million books and pouring over the posts in Bigger Pockets, that direct mail is something I will do later, when I have the money to pay for printing and postage. For now, I think it's better to put what little I have into signs (I found a website that sells signs with metal wire stakes for about $1 each) and other start up items. So, my plan for 2008 is as follows:

-Get a P.O. Box for $15.00/Mo.
-Get an 800 number and voicemail box for around $30/mo.
-Get some cheap, almost free, business cards with the above contact info on them and my new LLC name.
-Order signs with the 800 number on them, that will attract pre-foreclosure sellers.
-Place signs on corners of areas I am familiar with as to the market values and rents.
-Wait for the calls to come in, screen them, call and make appointments - hopefully I will be on my way.

Meanwhile I have researched and obtained all the contract forms I need and have them organized and filed, ready to use. I got some of these forms from the nice people at Bigger Pockets!

Of course, if I get sellers, and am able to tie up properties subject to, or lease purchase, then I will need buyers to flip the properties to. I can get these from my REI club, or place more bandit signs that target buyers this time.

If you like, I can keep in touch with you and see if we can help each other be successful. Good luck! Mike

Dhinderliter,

It sounds like you are focusing on doing rehabs either for resale, or to keep as rentals. Both are hard to do with no reserves. Not impossible, with the right support and team. Have you considered working in the wholesale business? There is a great wholesale forum in Bigger Pockets, and if you have not read those I would suggest doing that. This is a way for you to get involved and dive into the REI world without 2 nickles to rub together. Al you need is perseverance. You could be working with pre-foreclosures and other sellers in trouble. Your real estate friend would probably be happy to show you the sources to look for sellers, and maybe even help you find your buyers as well. You have probably already read books on this subject, but if not I would be happy to give you some resources that have been helpful to me. Just some thoughts, good luck! Mike

Feldmanbro,

I have not done any short sale deals. I was asking a hypothetical question so that I can begin to understand the technique for when I do go after these deals. Eric did a great job of answering my question. Thanks,

What did I say? Mike