All Forum Posts by: Chris Licavoli

I bought John's course in May 2013 for $997 and I have used it to turn 6 deals for a total $100K net profit. The course is excellent with detail information. The strengths of the course in my opinion are in the methods presented to sell the properties using gorilla marketing techniques and the systematic method towards bidding. The only real secret to HUD deals is in the systematic daily bidding process and the critical importance to getting in the loop on counters. HUD counters are not advertised. Why I do not know, but you will not get in the loop on the counters unless you are putting in bids every day. Once you know the counter %, keep bidding until they drop the list price, then apply the counter % and you will have a deal. Having said all that, its all based upon supply and demand so some areas of the country will get more of a discount than others. You just have to flex with the market. The other source of value is in HUD under-valuing the property to begin with. The "as-is" value is a real pro appraisal so if the property is trashed the appraisal will reflect it and you can force appreciation by fixing it up. Also there are no deed restrictions with HUDs which is an advantage. There is typically not enough spread to flip these to investors so more typical is to sell to end buyers as is, pre-hab, or full renovation.

Hope that helps!

Regards,

Chris

I am searching for a way to rent to a pet owner but an extra $500 ain't going to cut it to replace flooring. I would need $8000 security deposit to cover the potential cost (ask me how I know!). Nobody loves their dog that much to put up that kind of cash. Is their any good renters insurance I can point people to that will pay out in event that all flooring would need to be replaced?

I just got done writing a check for $5,000 to repair a termite investation in Savannah. It can happen quickly and silently until they erupt through the sheetrock or wood casings. They had to de-skin the entire interior front wall, cut out all the compromised wood, put in new framing, re-sheet rock and paint. I am very glad I had an understanding tenant. Lesson learned...preventative termite treatments, annual inspection, termite bond on all rental properties. Its worth it to avoid a $5,000 surprise.

Thanks for the replies. The portfolio consists of 8 properties...4 with mortgages, 4 free and clear. The ones with mortgages have long term fixed rate "gubument" backed loans. These are precious to me and I dont want to give them up for a more expensive commerical loan unless I am up against the 10 loan limit and I am not there yet.

Does anyone have experience obtaining Home Equity loans accross a portfolio of rental properties? Do lenders do this? Let me be clear, I am not asking information on a lender becuase they will delete me. I am justing generically what type of lenders do this this and how does it work...do they place liens against all properties involved?

Thanks

Hello -

Noobie to this thread and BP. I had a motivated seller contact me with the following details:

- Tired landlord wants out 1250 sq ft 3/2 house built 1991 good shape house
- probably rents for about 1000 a month
- 1st mortgage $69500 payments $766 current
- 2nd mortgage $27000 payments $289 2 months behind
- Est market price $115K but will sell for what he owes

The only way I would be interested in this is if I could get the second mortage holder to accept a payoff of a couple thousand only on the debt but I have no experience in pulling something like this off. I guess the only way they would is if they thought that the first mortgagee was about to foreclose but I have no idea how to put myself in the middle of a deal like this. Does anybody have any advice?

Thanks in advance
Chris

We have people in our market that advertise weekly deals for about $200-$400 but i am personally not sure what the issues really are in operating this way.

Another interesting idea I heard about at REIclub is a dude who offers his properties "by the slice", that is to say, he turns them into special needs housing and after you build the relationships with the local caregiving network, result in 2 to 3 times market rent with ZERO maintenance responsibilities (the caregivers have people for that). I have been thinking about trying to implement a similar strategy, but of course, you have to buy his course to get the real details you need.

Wow, I just stumbled upon this fascinating little thread. I love to read about success stories and the before and after pics are speaking for themselves already. There is just something about rehabbing that speaks to me about hope, redemption, and similar themes that just seem to put me in a good mood.

Aaron, I would love to read the project close out case study with the purchase, rehab, sale price, profit, timeline figures and financing arrangements so that I can use that as a measure goodness on my own projects. Of course if you would rather keep that private I totally understand but keep those pics coming!

Hello BP - my first post! I have just aquired a property across the street from 2 large organizations that have people coming for short term work, projects, and visitations. I believe a strong case can be made for one of these groups to lease my property long term for a corporate rental and offer it to their people and visitors as a very conventient place to stay. I wanted to offer it fully furnished, utilites and all with cleaning and turnover service for about 2x normal non-furnished rent. Does any one have any experience doing this?

Thanks in advance!