All Forum Posts by: Richard Warren

Model lease backs can be a good deal in an appreciating market.

One major issue is the strength of the builder. What happens if they go out of business? This is happening to a lot of smaller builders. If that happens, your rent guarantee is worthless and you may be stuck with a house in a neighborhood that has not been completed. Good luck selling a house like that.

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What is the cost to build in your area? Here it is about $100/ft + land. It can also be expensive to demo a house and cart off the debris. You need to look at the house and see if there is any way it can be rehabbed. It doesn’t need to be perfect, just livable. If it is that cheap but hasn’t sold, be careful.

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Congrats on hitting 1,000!

Now Josh buys you a convertible, what color do you want?

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At 70% the correct amount is $120k. How much an investor will pay is determined by the local market. It may be 70%, 60% or even less. Here in Las Vegas I wouldn’t pay 70% because I could get those deals all day long on my own as could anyone else. So your local market will determine the price.

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Your approach is fine if there is any equity. The problem is that in many bubble markets, like Las Vegas, people owe much more than the home is worth. In this case the choices are either short sale or foreclosure.

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Welcome to BP, it always good to have more people from Las Vegas.

Check out the Las Vegas group and join if you haven't done so.

http://www.biggerpockets.com/groups/10

Be sure to check out the info for the real estate investment club meeting, which is Wed. night. Show up if you can and be sure to say "hi".

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Absolutely! However, keep in mind that the average agent knows little to nothing about real estate investing, they just know how to do transactions. Almost everyone of them will say that they work with investors, but they are clueless. On the other hand, if you are working with an agent that really knows, then his or her help can be priceless. Start by going to your local real estate investment club meetings and ask seasoned investors who they work with. Then meet with a few of those agents and get to know them.

Check out clubs here:

http://www.biggerpockets.com/real-estate-investment-clubs.html

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Never mind the rates, what are the odds that the mortgage will be issued at all? It seems like lenders are looking for reasons NOT to do a loan.

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I have purchased HUD homes in the past. HUD homes can be sold through any broker who is registered with HUD and you must use a broker to submit your bid. Therefore it is not unusual to see the same house marketed by more than one broker.

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A hard money loan is still a mortgage. The lender is going to appraise the house to be sure that there is sufficient collateral. It is just like a traditional mortgage except that it comes from a different source than a traditional lender. Now if you could establish a credit line or business line of credit that isn’t secured by the property then you can use that like cash. That is very difficult to do if you do not have an established business or a personal residence that you can borrow against.

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