All Forum Posts by: Brandon Schlichter

Both the previous posters are correct in the most part.

I do work as a listing agent for a few lenders. Depending on the lender, some are looking for new people to get in their network , most already have favorites. You can attempt to meet the lenders in person , but that's another story of social engineering.

Anyways, the comissions vary from bank to bank , lowest i've seen has been 2% regardless of listing price, i've heard of some banks doing a $500 flat brokerage fee.

The comission isn't the problem , the problem is YOU are the one that picks up the tab for the electric, water ,and any maintenence that's done on the property (From most vendors). IE , property can't be driven to well ,so it needs a new gravel driveway...you spend $2,500 out of pocket, which will be reembursed in 2 months. Some repairs are even more , it changes from lender to lender. It can be profitable... but mainly if you're a full time agent. The best thing to do is go for investors and sell to them, some banks will want to work with you because you have a large investor base.

Savoy's right....

Definately look for absentee owners that are in pre-foreclosure, expecially on multi family units. Once in a while i get reports of preforeclosures on 3-4 unit properties....Some of them can be had for VERY cheap.

This one was on the market for 3 months or so, very few looked at it becuase it was listed by a out of town brokerage , and hardly any agents had access to information about it.

If it's listed by a local agent , you have about 3-7 days to grab it, and you'll most likely go into a multiple offer situation.

I've seen about 10 GREAT deals thus far in 2007, with some being amazing and going for about 33% of ARV (Some didn't even need repair!). You'll find out what i do........most investors aren't serious, like to play around, and in general can't find good deals.

I sold 2 foreclosures in April (and 1 in the first of May). #1 was a PP $61,001 and estimated ARV of $99,000 with about $10k in repairs . #2 was $46,000 PP w/ ARV of $89,900 I've spent at most $2k in repairs so far , and #3 was $135,000 PP with a ARV of $199,000 with $25-$30k in repairs.

They come up ALOT , but you gotta have someone that looks at the MLS multiple times a day. I HATE realty trac ,and have a system designed very similar that picks up the foreclosures in the area. I've had RealtyTrac people call me about my FC listings to say 'Will they take the $84,900 that's listed on the website' , when in reality the home is worth $123,900 with a list price of $123,900.

In some markets, like our closest metro area, i could sit on the MLS all day and find great deals. It's just one of those things that takes time, and finding a agent that deals with investments alot.

(edit, forgot to include repair prices with values)

Alot of banks will allow a 3x repair value for the home to be factored in the market analysis of a home in a pre-list stage.

I deal with foreclosures on both sides, the agent preparing to sell, and the investor wanting to buy. There ARE good deals out there, you just gotta look for them. Some lenders are willing to take a hit on the property and sell it for a reasonable ammount , while some don't care and want X dollars for the property and will let it sit for years to make a extra thousand bucks.

Example - I just bought a listed foreclosure , it was a out-of-town brokerage and hardly any agents knew it was listed. I took a look at it , ARV was around $89,900. The list price was $46,900 , the bank assumed it needed a new roof , paint , carpet , plumbing and a few other things. I bought it for $46,000 w/ $1150 in buydowns. My total repairs for the WHOLE property have been around $2,000 , the roof was fine other than the tarp they put over it ,and fixed it with a $15 bucket of roofing stuff.

They're out there, just gotta look!

For accessing the videos? Nothing.

I got a question, for anyone that's new to REI :

Would you be interested in a webshow about investing in real estate? I'm curious if anyone would want me to put together one concerning REI from a newbie perspective. I've just started in REI myself, and i'm also a real estate agent, so I haven't had many troubles concerning getting into it and finding deals.

If there's interest in this, I might proceed on putting a show together about working a deal out, and all the angles. I have a background in real esate (I'm a agent) but everything would be from a new investor prospective.

What are your thoughts?

Thanks!

Well , unfortunately i've ran into a problem...

The appraiser only appraised the value of the home for what i'm paying on it (which means he felt the condition was below par, used ONLY reo comps that reflected the value he felt matched it).

Becuase of that , its thrown me out of getting a HELOC due to appraisal seasoning , so i've gotta repair the property out of pocket.

Thankfully to get the value i feel (I'm going for $10k on top of the 43k that i'll have into it) and remburse myself for the $3k i'll be spending on it. There's a big tarp on the roof and the appraiser most likely felt the whole roof needed replacing which isn't correct, the flashing is leaking and only needs some caulk and a very small area (100sqft or so) needs new shingles.

I think that I will do a lease-purchase or lease-option now that everyone's sugguested against land contracts. I wish now that I would of gone with a lender with lower closing costs, as adding a refinance on top of this will take away a bit more since i've paid closing costs twice.

Someone sugguested using hard money lenders for things like this , which i believe i will do with the next deals (I've got 4-5 lined up after this one).

Ok, lets see what i can answer........

Noobdog, i am a buyer agent on this one, the property is listed by a out-of-area broker that has no advertising , or MLS support in this area, no one knows about this property, so i am not self dealing , or otherwise (and i've stated on all documents that i am a agent).

Tallgrey , i'm thinking of doing something very similar to what you're doing. The only issues i'm looking at right now are closing costs on the refi , ect. I should of used a hard money lender on this one to begin with, but I didn't think to call them up. I think i'm going to hold out on the cashout for a little while. I only need around $5k out of the deal up front so i can buy my next property with a even higher cashflow ($80k duplex for $40k with a income of $1000 a month).

I'm really trying to weigh all the options on getting a little bit of cash out of this deal to do some rehab on the property + have money for the next flip. The value of this property is in the $80k to $90k region.

Hungry Realtors = Good Realtors.

As a Realtor, i realize its a niche for the market. The problem we have (agents) is there are a UNBELIVABLE ammount of people that contact us that "Want to invest in real estate" Out of all these leads , maybe 1/10 or 1/20 really wants to invest in real estate. The rest are tire kickers and a total waste of our time. A good agent should have a background of investing. Personally, i'm getting into the investment side of real estate, and my franchise has had several siminars on using real estate investing to boost our business.

My general goal and plan is to offer any real estate i find that i deem a good deal to my networking circle first (my investors) If they don't want it, then i take a look at it for myself. There's alot of properties with signs out in front that no one knows about.

You have to understand the concept of MLS , i live in Central ohio, and there are around 20 different MLS services in our area. I regularly find homes (Mainly foreclosures) that are invisible to 98% of agents in the area becuase they're listed on out-of-town MLS sevices. These same properties are seeing price reductions from the bank, and are in very good areas (I'm buying one now that's not on any of our MLS services) with a good bit of equity in it.