All Forum Posts by: Richard Warren

It seems that a couple of brokers at Credit Suisse are in trouble for selling subprime securities to customers without telling them. Just another day at the office...

http://news.yahoo.com/s/ap/20080903/ap_on_bi_ge/sec_subprime_charges

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I look at ROI a little differently than that. To me if I buy a house for $100k then my investment is $100k regardless of how I paid for it. So my ROI would simple be the appreciation, if it goes up $5k in a year my ROI is 5%.

Cash on Cash Return is how much I have made on the actual cash invested. So if I put $10k cash into the deal and earned $5k in a year my Cash-on-Cash Return would be 50%.

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First the standard advice: Get a lawyer.

Now that that’s out of the way, if you violate the terms of the note and are considered to be in default, the note can be called. It would still, most likely, need to go through the foreclosure process. You can fight a foreclosure action in court since foreclosure is not automatic. If you are current and indicate to the lender that you intend to fight them in court they might back down. The laws of your state will be a large factor and a lawyer can give you the best indication of your chances in the courtroom.

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The title company that you use will do a search for liens & encumbrances. When they are satisfied that the title is clean they will issue a title insurance policy, which you absolutely should purchase. Using a licensed appraiser should give you a fairly accurate value based on recent sales. Your risk is that you buy in a declining market and the value goes down or you don’t bring in enough rent to cover expenses. Before diving in you should spend a lot of time devouring all of the information available on this site.

You will always have a degree of risk, you minimize it by having knowledge.

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Here in Las Vegas the price range is $3.67-3.79, some stations are higher.

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How about subprime mortgage meltdown?

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I think finding a niche is important. You need to do what you enjoy but also stand out. As Mike says, a niche is only good if it helps you make money.

You may find the following helpful:
http://www.biggerpockets.com/renewsblog/2008/04/21/finding-your-niche-in-real-estate/

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That is pretty much my model. I buy and rehab for cash and then refi. I have not attempted to refi in the current environment.

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Look in the group section. If you don't see a group for your area, start one.

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I have several loans from WAMU. They are essentially out of the NOO business. You can ask, but they probably will not do it unless they’ve change in the last few months. You should look for a small local bank and hope for the best.

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