All Forum Posts by: Rick Stein

whether it is an REO,preform closure, short sale or "normal" situation, the offer is the same

if it is a pre foreclosure, that is to say, the seller is in foreclosure but not under water, then you need to know if he has been issued a date for the foreclosure.If he has, and it is Imminent  you may not have enough time. If this is just going to be a normal sale with enough to pay off all liens then just treat it as such. Have an agent or your attorney prepare the contract. If it is a short sale, then somebody who knows what they are doing in negotiating with the lender, either an experienced short sale agent or an attorney can work on your behalf

You need to know the "comps" , in other words, what have similar homes in the immediate area rented for?I do not trust Zestimates. I find them wildly inaccurate. Get a good real estate agent who knows the area and have him/ her show you similar properties and what they have rented for. It is that simple.

by "pre foreclosure" are you referring to short sales? The challenge with these types of properties is merely because the home owner signs the agreement of sale, that does not mean you have a deal because it is subject to lender approval which can take months, tons of frustrating paperwork and, even then, the lender may not approve the sale. In addition, the lender also wants to have the property listed in the local Mls, so they feel the property has been exposed to the market and it is an " arms length" transaction, or, to put it differently, that they are getting fair market value. I know there are investors who do quite well with short sales but they usually have a team which includes someone who negotiates with the lender. I am both a real estate broker and investor for 30 years. I, personally, stay clear of short sales for the reasons I explained above. I have been an REO agent for almost that long and have purchased many along the way. I also send out a great many yellow letters and much prefer to sit down with a home owner over a cup of coffee and hash out a deal privately that benefits both of us. In this scenario, if the homeowner signs the contract, we have a deal that is not contingent upon a third party approval. I hoe this long winded answer to your question helps.

The c.o or certificate of occupancy, once issued, says that the property no longer has city or municipal violations. When you buy a property in " as is" condition, you, the buyer, are assuming any and all violations. Besides the c.o., have you had a home inspection or are you buying the property blind? I also assume , since you are using an FHA 203k loan that you will be living in one of the units as FHA loans are for owner occupants only.

I am an experienced investor with about 30 years of experience. I have spent a lot of money on courses and boot camps and gotten my money's worth. No regrets. Having said that, I have derived great benefits from being a member of my local REIA which costs me next to nothing. The education, networking and just the association with like minded people who are willing to share info for free is priceless.

Hi, Wally,

  You should look into South Jersey Real Estate Investment Association. Check out the website SJREIA.org. I have been a members for about 5 years and find it an invaluable resource for education and networking

Good luck

find out if the HOA IS Fnma and/ FHA approved. If not, you could have trouble seeking it. I think the cash flow is a little thin. It doesn't leave much room for unexpected repairs, extended vacancy, etc

you may get immediate calls but the " dance" may be immediate or you may have to follow up for a few moths. I have gotten calls many months after sending out the original letter. Your  problem would be if you get calls after you move to Florida, how would you preview the property? If you are definitely going south, I would wait until I get the The Sunshine sate and start over. 

Hello, Henry and Chi,

 Since I know you both and ,as you know, I also do a goodly amount of biz in Trenton, both as an agent and an investor, it would be nice if the 3 of us got together for lunch to compare notes and see how we can help each other. You both know where to reach me off site.

:) Rick