All Forum Posts by: Brendan D.

Banks will normally not permit options or assigning the contract. In addition, banks often want a clean contract (without a lot of contingencies). They will negotiate but usually do not respect any deadlines you put in an offer. Banks are also notorious for "shopping" your offer for the purpose of getting a better price.

I have bought a lot of REOs and have found banks to generally be a lot harder to work with than individuals.

Good Luck,

Mike

i agree 10,000% . after spending 60 days on 3 REOs only to have NONE of them closed, i don't even deal with banks or realtors. there's just no need as there are tons of other motivated sellers out there.

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Originally posted by "dtwilson":

New to the forum, curious how many people started out with a mentor. I am 21, a recent college grad, law school bound. REI has always been a goal of mine regardless of any other job. I have capital, no debt and excellent credit. I'm wondering the role mentors played in an early REI career.

Also, opinions looking for opinions on how to start finding properties, is working with a realtor the way to go?

Are income generating properties best for starting out? since I will be in school full time and will not have a job

Thanks for the help!

working with realtors is just 1 way to find properties. there are tons of others, signs and direct mail being my favorites. also business cards.
i've left business cards at gas stations and got calls.

a mentor, a good mentor, keeps you focused and on the right track as well as they can shorten your learning curve. it doesn't take much money to get started in real estate just alot of nerve.
if you don't have much capital then i wouldn't recommend rental properties, i'd say wholesaling is the way to go.
wholesaling is finding a property at 50-60% ARV and selling that deal to an experienced investor for a fee. do a few of those and you will get a good education on good and bad deals. then you'll have some capital to keep moving forward and finance your real estate education, and then you can move on to the next set of deals.

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Originally posted by "axiomonellc":

Hello ALL,

As you can see, I just joined this evening, and I must say that I have gained a good amount of information from a lot of different articles... Thank you.

I am a wholesaler and I am struggling a bit to actually find pre-foreclosures and motivated sellers. I am a subscriber to RealtyTrac, so I get all the latest listings. In order to find the homeowners, I have mainly used the method of "direct mail"... and well, lets just say its definitely a small -to-medium success ratio. I have had about 25-50% of my letters returned back b/c of vacant properties.
I was lucky enough to catch the attention of two homeowners who were behind on payments and were interested in getting rid of their house to save their credit. Unfortunately, they no longer had interest in selling to me... and well I know that the competition is fierce out there, so Im wondering what is the best way to actually find homeowners and keep them.

Is direct mail a waste of time? Im going to continue doing it, because Im a firm believer in staying focused and sticking to it. I just want to know there are any other alternative ways that are successful in capturing motivated sellers for foreclosures and pre-foreclosures to do short sales and if there is a good amount of equity, just close in a on great deal so I can flip the contract over to the Retailers.

Anyone have any suggestions??

Thanks

direct mail is definitely NOT a waste of time. however in my experience, most homeowners in foreclosure want to keep their home.

there are tons of motivated sellers NOT in foreclosure. don't lock on that as the ONLY source of deals out there.

to answer the 2nd part of your question- if there's a good amount of equity the homeowner can refinance to save their loan.
where's your competitive advantage?
also when you write them, answer this question that's in their mind :
"why should i sell my house to you instead of the other 50 investors who've written me letters?"

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Originally posted by "hustlershope23":

I was wondering if it always a bad idea to buy cheap homes in cash I'm talking homes that cost 10 to 15k and a few grand to fix up, then hold and rent them? In a few years you would have recouped your investment and everything after that besides maintance,taxes is profit..for umm as long as I want. Or is that the "long way around"?

what will the homes be worth once fixed up?
one strategy could be to pay cash, fix them up then refi to pull your cash out and move on to the next deal, or use the equity to buy your next property. i agree with Lou wholeheartedly, i'm not sure I'd want to tie up my cash on those deals. especially when there are other sources of money. and with prices that cheap, it shouldn't be difficult to find funding sources.............

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hal roark has a section 8 course i've heard good things about.
also mr landlord has alot of good resources for those looking to go into the rental market.

i'd guess, it all comes down to your objectives. do you want chunks of cash? or do you want steady cash flow?

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Originally posted by "Pillow":

Well I have been doing the homework and hitting the streets. :)

I found two properties which meet my low standards. Single family on a decent size lot (1 acre) in blue collar neighborhoods that need work.

One is priced right from the start with an eager realtor. 230K REO needs landscaping and exterior wood repair... Probably new garage doors as well. I figure after negotiations I could make some money on this one and sell it for 250K. Granted I still need to be between 150-175 for the numbers to comply.

The second is a heavier remodel as it is completely outdated inside... Hideous 70s stuff throughout! REO priced at 299K, but a real street value needs to be closer to 150K. I spoke with the listing agent and found that Countrywide owns it... She was a real B!tch and did not even want to look at an offer in the 150K range. Bad attitude all over the place on her side. Granted this is on a nice lot and would be easier to resell.

I am not sure if I really have a question, but just want to see if I am on the right track or just crazy.

... I received a list of short sales and REOs from a realtor contact that I need to go through as well... Crazy good prices! BUT might be ghetto-riffic. Got go see to tell.

Thanks,

Hi,

I've noticed the same thing. I've been working some deals in Capitol Heights and Seat pleasant that are bank owned and between the agents and banks i don't know if they're just plain stupid or have no idea waht the comps are.............
with that being said, personally i wouldn't deal with that agent. find one that' investor friendly and will submit the offers for you. that agent has ZERO say so over your offer. if a contract is submitted she must by law, present it to the bank. it's up to them whether they accept it or not.

nowadays i don't even deal with REO. i like dealing directly with homeowners as banks are too unrealistic. with their price expectations.
if you need recommendations for agents in that area pm me. I know a few that work the No. Va area.

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Originally posted by "Ashamann01":

So I am going to look at a 3 family property this evening that is completely gutted, the owners started the rehabbing then ran into financial problems and want to sell it now.

The listing states the following:

Perfect opportunity for developers or first-time investors! 3-story building on 18.75x100 lot. Engineering & architectural plans complete, historic approvals & bldg permits obtained. Building is gutted and ready to go! Project includes design of 3 gorgeous condos totaling 3200 SF as follows: Unit #1 - 1800 SF, 3BR, 2BA duplex w/2 living rooms, terrace, backyard & parking! Unit #2 - 900 SF, 2BR, 1.5 BA w/private balcony. Unit #3- 500 SF, 1BR, 1 BA w/400 SF private roof deck!

I have a couple of questions to ask the owner at our meeting this evening but I wanted to get this forum's input on what types of questions I should be asking.

This would be my first purchase so don't hold anything back!!

Thanks in advance!

IMO this is a little bit rough for a 1st time investment.
do you have a contractor you trust? what about financing? what are you looking at selling each unit for?
what are similar units selling for?
what are the estimated construction costs?
is the seller willing to sell for what he/she owes???

with that being said, this deal sounds a bit complicated for a newbie, however it's not impossible. don't fall in love with it and get all the numbers, plans, permits etc. make sure you have a good idea what the final value will be.
what is the average days on market for similar units?

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these are good suggestions.
another way to get noticed is to actually have deals.
what's a deal? any property/junker that can be had for 60% after repair value minus repairs.
what's the quickest way to get deals? bandit signs. check your local ordinances on the legality of using this tool.

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Originally posted by "JensBeatty":

Can anyone tell me where a good place to go to be informed of upcoming training events? Maybe some websites with lists or newsletters I should sign up for? I am planning on attending a few events over the next few months and was just wondering what was out there to choose from.

Thanks for the help.

i'd have to agree with Mike. stay local. get hooked up with your local REIA. i wouldn't trust any outside national guru as they may not be as familiar with your area. chances are they have a list of bootcamps coming to town, and some have monthly sessions/teleseminars.

example- i'd never take a foreclosure bootcamp from a guru who isn't from my area. why? my state and the surrounding states have passed legislation that outlaws certain activities as it relates to foreclosure. a national "guru" may or may not be familiar with how to maneuver around such obstacles.

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Originally posted by "littlelady":

I just read Rich Dad Poor Dad,it was a good read and very motivational. It seems like all these books are motivational, and give you examples of deals they have found. The one thing I notice these books lack, is the actual how to. They talk about finding good deals,,,how some look good and could be bad on paper, and others don't look good, but could be good on paper. What is the formula for finding out if it is good? Or a postive cash flow deal? Or they talk about buy depreciating property that the government will help pay for. Where do you find these deals? I am just starting out...I'm pretty smart and learn fast...what is the best way to learn real estate finacial literacy? Books, websites, etc...

Thanks!

IMO the best way to learn to invest is to associate with local investors in your area. see what they're doing and HOW they're doing it. each local market is different. so to get a real feel for it you need to network with those who are making it work for them in your neck of the woods. ask plenty of questions of investors in your area.
and definitely join your local REIA group. most have beginner classes where they give you an overview of techniques and how to get off to a good start.

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All Forum Posts by: Brendan D.

Brendan D. has started 2 posts and replied 92 times.

Post: Dealing with bank owned properties

Post: Mentors?

Post: Finding Motivated Sellers and keeping them...

Post: Is this stupid?

Post: Flip, Rent, or Section 8 ?

Post: Good property to flip - unrealistic realtor

Post: Gutted Property Questions

Post: How to be notice in my REI Club?

Post: Where can I get a list of upcoming seminars and bootcamps?

Post: Rich Dad Poor Dad