All Forum Posts by: Richard Gaston

Ok, an update. ITS NOW OFFICIAL, I am making my first deal lol... And its not as bad as I thought it was, only minor repairs needed upstairs bathroom needs to be finished and the rest is just general maintance so at the most, $10k in repairs if that, maybe less. This is going to be fun lol....

@Wayne Brooks oh darn, lol, j/k. Yeh that would be a very long commute lol. I thought as much but wanted to make sure, I knew if you did a convential loan you would have to live in the area, because most Lenders and/or Mortgage Brokers also has to be licensed for that State(s) I knew RE Agents/Brokers has to be License for the States they are helping with Sellers/Buyers. Just wasn't to sure if the same applied for FHA but I did guess as much. Thats ok, I have seen a few South of where I live that isn't to high in price either, just need some TLC which I don't mind, as I said I ain't afraid of putting in a little (or a lot) of sweat equity :) Even my wife has some ideas (as long as it isn't pink polka dots lol, and yes we have seen a couple houses with those {Shudders})

@Wayne Brooks Thanks, my main question though is if I see a house in Montana for instance and its at the price range I want, can I living here in Washington get preapproved for a FHA Loan and a 203k if the house warrants it to purchase a house while I am here, or do I need to move to Montana? I know on other Mortgages, the Lender or Broker has to be licensed for that State, but seeing I am doing a FHA I was curious if its the same or not? And if it thats not the case I am looking at some homes in Missiori (ok I am not the best speller this early in the morning, just got off work) and I was wondering if there are any Agents/Brokers here who can help me with this, I may need to check with Mama to make sure if that is where she wants to move to though lol, she has been saying a lot of ohhhs and ahhhs. She found quite a few homes there that are really low in cost which makes it perfect for my Debt/Income Ratio right now. I don't know where she found this one home, it was a prefab and $8,000.00 lol and damage was minimal to say the least. But as you can see I have been looking lol, just waiting to find out if I have to be in the same State when I decide to purchase the home or just get Prequalified for a FHA Loan, purchase the house, make a couple of months payments to tied me over then move there, that was the idea anyways. Still need to wait on my wife to let me know where she wants to move to, what house etc. Ok I am taking way to long here, so thank you again Wayne :)

@David Krulac Thanks for the input, I just happen to notice what you just said at The HUD Store. I wasn't paying attention earlier, wife kept saying ohhh and ahhh on some of the houses lol...

@Everyone else, I am not trying to buy any property there as an Investor, to clarify what I was saying, I am trying to purchase as an Owner Occupant, sorry I wrote that late at night and was a bit tired even though it was my day off. I have been working and coming home to study as well as look at houses. There has been days (and I mean days not nights, I work a Graveyard shift so I sleep in the daytime) where I just don't go to sleep, I pass out from sheer exhausation.

@Wayne Brooks I have already factored in I may/will have to get a job in another State as well as do my business (Real Estate Investments, Fix and Flips and/or Wholesale. Long Term Goal: Buy and Hold as well as Fix and Flip and/or Wholesale) Right now I am trying to figure out if I get PreQualified for this State or do they factor in I may have to get a Job in another State if I move and basically tell me to wait until I move (which don't make sense, I need a place to move to lol) to the area and buy it AFTER I move there?

Ok, I know I talked about this in another thread but basically this is a new question concerning HUD Foreclosures. I don't know how these gurus can Wholesale HUD Homes from the HUDHomeStore.com seeing you need a HUD Selling Agent who is also either a RE Agent or Broker to buy those homes, or am I wrong? From what I understand about Wholesaling and I can be wrong on that score too, is that you create a contract with a seller to purchase the home, then find a buyer to purchase the same house and then sell the contract at a higher price, that's about it in a nutshell, and I can not figure out how it can be done at the HUD Home Store.com but oh well, I did a check on my credit score and found out its higher then what I thought it was, my FICO Score is 580 instead of 545, which now qualifies me for a FHA Loan with some mortgage companies, my wife is now really excited to say the least, so I really need to understand how the HUD Home Store really works. When I was an REAgent I know that in order to sell houses in any State you have to be licensed for that particular State or States if the office has multiple offices in several States (ie: Century 21 for instance), even it is for a HUD Home.

Now on Foreclosures normally when you go to the Courthouse Steps to bid on a house, the normal bid starts at what is owed on the House, what it was foreclosed on, so the Bank or Mortgage company will get what is owed them, anything more then that is pure gravy for them (Profit). Is that the same as List Price at the HUD Home Store? And if I decide to bid less on the List Price, what is the recommended percentage, ok I am getting ahead of myself, I am buying A Home for myself and my family. And its just not in the State we live in, that is why the comment about other States, my wife saw some great looking and somewhat great looking homes that with my Debt to Income Ratio I should be able to afford even with my present income in other States, we even saw a few below $14k (not sure about the neighborhood though lol at that price). I know there are a few States that have down payment assistance programs as well making it a 100% Financing and I have no qualms in putting in a bit of sweat equity, and there were a few like that as well. But my main concern is understanding The HUD Home Store, how to bid properly, understand what is expected of me (besides paying for it) If I can get PreQualified here in Washington State to purchase a home lets say in Missiori for instance or Montana. If I can find an RE Agent here who is also a Listing Agent with HUD and Investor Friendly (I know some Brokers/Agents are not to Investor Friendly from what I have read here) as well as a nudge to the right Mortgage Company that does FHA Loans. Understanding what I am reading so I won't be to lost. Some of the Homes my wife looked at she really liked and wouldn't mind moving out of State, she even said so herself. All she wants is something that she can feel comfortable with, even if she has to do some dirty work to make it her own, a nice yard for our 12 year old son and a decent school system. Ok I made this to long and I am sorry, while I am waiting me and the missus are still shopping at the HUD Home Store (and yes I know its "The Good, The Bad and The Ugly, lol, we seen them. I have seen some houses that made my hair stand up, wow talk about scary lol). Thanks in advance.

@Jeff S. maybe you're right. Maybe I am too stupid to play with the big dogs, I should just go back to doing my 3D art and keep studying more and not do anything until I am ready, thank you for the clarity.

Ok, seems like my first deal don't seem as high as I was hoping for, oh well. I was hoping that if repaired I could sell the house for better then $200K, after a broker did some comps, it looks like I will be lucky if I can sell it between $150K pushing if I am lucky $180k after repairs, which means if I were to just flip the contract I would be lucky if I can get $125K if that, which won't work, without looking I am guessing the repairs are a little more extensive then that from what I was told, which means if I were to take it on I would have to offer to bid at $80k and be lucky if I can get $85k for the contract if even that just to make sure the investor who purchases it makes a decent profit after the repairs, I just may decide to let another investor have it without getting a contract on it I don't want to fail on my first deal.

@Jeff S. Nope not scamming, just a bit concerned, but I don't think he wants to deal with me, gave him an expired DL, ah well.

@Dawn Anastasi I am always concerned about that, but we all give that info out even to lenders we know and trust. When we go to a Resturant we give our Debit/Credit Card to the waitress, and it's not unheard of when one of them gets the info and starts buying products online. Which costs us hundreds if not thousands of dollars. Look at the Hack job that happened at Target Stores recently where almost everyone that shopped there who used their Debit/Credit Cards wound up being comprimised. But we still give out the information, there has to be SOME trust, even to Bankers as well as Lenders. If there isn't a little trust none of us here would be in business very long.

@Bill Gulley I will have to agree with you but then I won't be able to get any kind of business done, I don't know any Lenders personnally which would be nice if I did, if any Lender knew me they would know when I say I am going to do something I will do it unless something serious happens to which I will give them a heads up, my Landlord can vouch for that, been here for 13 years lol and I always have been good at paying my rent not only on time but seeing I split my rent in half, I even pay half of it early which makes it easier for me to support my family.

But because of my concern, I did talk to my bank and they are willing to help if I do get a Bank Draft from the person, we are going to open a seperate Escrow Account and basically lock it up for 3 weeks or so, I can not touch it and this is by my request, the bank will also make sure its all good as well, they will investigate to make sure the Bank Draft is Legit as well as the company.

I got an email from the Angel Investment Site and they also understood my concern, said even though they investigate most Investors it is hard to Investigate EVERYONE so they gave me a heads up to avoid being scammed, one of which the scammer asks for a payment upfront to pay on the Loan, sometimes up to 3 months. When a person makes the payment as per request, the scammer gets the money and the applicant don't get the loan, which results in the person losing a lot of money. So if I get a request for payment before I get the Loan then I know its a scam. A legit lender will not ask for payment in advance, unless its the normal payment that is associated with doing a business transaction, ie: Payment for doing credit checks, application fees etc, and normally they will take that out of the loan in advance before giving the loan. Nobody should have to pay to get a loan is what I was told. :)

@Bill Gulley am working with a Credit Repair Counsler right now, there are some issues on my Credit Report I needed addressing, some open accounts I didn't open as well as a couple of Alias's that I have never used, heck I never used an Alias lol. I think they are from Debt Collectors who saw the almost same names applied them to me saying its one and the same person, which it isn't so now I have to take them off, but the good news is my Credit Score is climbing back up lol, it was 545 now my FICO Score is 580, getting better lol...