All Forum Posts by: Rosston Smith
Rosston Smith has started 45 posts and replied 1465 times.
Post: Good Neighbor Next Door Loan - HUD BID Question
- Investor
- Warner Robins, GA
- Posts 1,545
- Votes 473
I'm in the market for a GNND HUD loan, which is exclusive to first responders and teachers. One caveat to know is that I can only offer the full listing price of the home, no more and no less.
When my HUD-broker is submitting a bid for a property, HUD automatically prefills box 6b that pays HUD's listing agent for the property at a 3% commission, however I can elect to remove the responsibility of HUD in box 6a to pay my listing broker by assuming that payment out of pocket.
The advantage of this, is the Net-To-Hud (7.) total at the end of the sale is higher, since HUD saves 3%.
The downside, is even if I offer full price for the home, I can't offer to pay the 6b costs, so the most I can offer is the listing price less 3%.
This puts me at an unfair disadvantage to acquire a HUD property, since other owner occupants can just offer the same price as me, and to pay the full closing costs and win the action, or just offer enough over me to make up for that difference.
Do any of you know a way I can increase the appeal of my offer to a HUD broker by increasing Net-to-HUD (7.) by any other means under the GNND loan requirements?
Thanks. Just trying to compete in such an aggressive market. I've included a sample of the bid offer page below for reference.
Post: New to Warner Robbins
- Investor
- Warner Robins, GA
- Posts 1,545
- Votes 473
I'm local to the area.
Here's a direct link to our meetup
https://www.biggerpockets.com/...
Post: Warner Robins - Investor Lunch
- Investor
- Warner Robins, GA
- Posts 1,545
- Votes 473
Looking forward to it!
Post: Inspection - Macon GA
- Investor
- Warner Robins, GA
- Posts 1,545
- Votes 473
Hello Nir! Taylor Home Inspections is who I recommend.
Post: Mobile Home Park 1st purchase, need advice
- Investor
- Warner Robins, GA
- Posts 1,545
- Votes 473
Whats the update?
Post: Subject To financing question
- Investor
- Warner Robins, GA
- Posts 1,545
- Votes 473
Originally posted by @Rick Pozos:
Hey @Rosston Smith no one in their right mind would give up that 20k in equity for no reason. Find the people with the reason. YOU as the investor have to find the people who WILL give up the equity(or some of it) because they HAVE TO. As mentioned: death, divorce, and also loss of job, behind on payments, injury that has prevented working, etc.
When you find the people who have ISSUES, Those are the folks that MIGHT give up some of their equity to you. And like @Steve Vaughan said, appreciation is usually the bigger equity that they are giving up.
For your example they bought for 100k put down 20k. Lets say now the house is worth 200k because they bought it 7 or 8 years ago and recently lost their job. They are behind on payments and are about to get foreclosed. They might be willing for you to take over payments and give them the 20k that they originally put in. OR maybe you might do (1) purchase sub-to (2) give them say 10k in their hand (3) give them a note (20k or more or less)that has payments of $368 per month for 5 years. You get a great deal, they get some now, some for the next 5 years.
Make it so that everyone wins.
Great points here! I really appreciate the insight. Thank you.
Post: Macon GA Flipping properties
- Investor
- Warner Robins, GA
- Posts 1,545
- Votes 473
Originally posted by @Philip Joseph:
Originally posted by @Rosston Smith:
I've owned multifamily in Macon, and currently stay near there in Houston County. I'm very familiar with the area. Let's work together.
If you have time, stop by the meet up and connect with other investors. We meet at 1200 at El Jalisciense, 1114 SR 96, Kathleen, GA 31047.
I'll be at the meeting tomorrow! Thanks for the invite.
Post: Warner Robins - Investor Lunch
- Investor
- Warner Robins, GA
- Posts 1,545
- Votes 473
Will see you there!
Post: Subject To financing question
- Investor
- Warner Robins, GA
- Posts 1,545
- Votes 473
I'm looking for clarification on Subject to. When subject to financing is used, is the equity the seller has put into the property forfeit? Meaning, is the seller paid for the equity they have put in the property so far?
For example"
The mortgage on the home is $100,000.
The seller has paid $20,000 of it down.
The remaining mortgage value is $80,000.
I assume the $80,000 mortgage.
Does the seller lose the $20,000? What would entice them to give that up?
Post: Macon GA Flipping properties
- Investor
- Warner Robins, GA
- Posts 1,545
- Votes 473
I've owned multifamily in Macon, and currently stay near there in Houston County. I'm very familiar with the area. Let's work together.