All Forum Posts by: Daniel Hedges

Steve,

I just wanted to make sure I understood your numbers. Is your purchase price at most 75% of the arv value minus repairs. If it is, then good. As far as getting a loan you might advertise for an investor on craigslist. This also might be a good time to connect with your local investor club. Hope this helps.

I have been in this situation before. With several short sales under my belt I have had successes and failures. Sometimes the bank is down right insane and just forecloses. Remember that there are plenty of deals out there. Also consider looking at HUD homes. I have done the very strategy you are talking about and it works. Remember that HUD puts out a new list every week and there are usually plenty of deals ( at least in my area). I wish you the best.

You will most likely have to set up a contract with the seller to buy the properties at one price and then sell them to the investor at another price.  I would probably consult with a title company about a double closing.  This is where you do a simultaneous closing at the title company.  This situation can be a little tricky, but you can figure it out.  Keep in mind that many deals will come along your way if this one does not happen.  Also learn everything you can from this experience and use it in your future deals. I wish you the best.

This may present a challenge. Have you signed a contract yet. Avoid contract always has a clause for due diligence where the potential buyer has the right to inspect the property prior to making a final decision. Another question: have you exchanged earnest money yet? If so, you may be in danger of loosing it. Let me know if you have any further questions.

sorry my post got short. I will continue. Put an ad on craigslist for one of your homes and keep track of all the people who call on the ad. These will be your future clients. You can even run a general ad saying that you have deeply discounted homes for sale. Those are just a few tactics I know.

Here are a couple of ideas. Get involved in your local rei association and get to know the investors always looking for good deal. Also put an ad up on craigslist for one of your homes. Keep a record of all the peo

you may consider a mail campaign to small apartment owners who are both looking to get out of their property and are willing to finance it. Finding a good deal is challenging, but don't get discouraged. When you find the right one all the hard work will be worth it.

There are many ways to repay a heloc. It can be amortized, or broken down, over a period of time that you like.  A good mortgage broker would be happy to help in this matter. One other thing I wanted to mention is to always have cash reserves on hand for unexpected expenses that can come up with you rental. Let's say the furnace goes out. How will you pay for it? If you use the heloc you may want to set aside a few thousand of for a repair or vacancy. I am speaking from personal experience. Be stuck with no emergency fund is no fun.

Not all the agents have to know about each other. This can be done by using agents from different brokerages. In terms of approaching agents here is what I have done. I will find an reo listing and contact the listing agent. I will compliment the home and tell them I am interested in that home or another one like it. They will be flattered and tell you all about the home. You don't have to say that you are an investor looking for dirt cheap homes. When they do ask if you are an investor you can say yes and that you would like to work with someone like them to find a home. The key is making a connection. They can then set you up on an automatic email with daily updates with the homes you might be interested in.

I have tried several different things over the years when it came to developing a list.  Here are a few of the things that have worked for me.  I have used craigslist in a few ways.  I use a general ad that says I have access to deeply discounted properties in whatever city you live.  I also create what looks like a real ad for a house in a particular area that talks about all the amenities and features of the house.  I do not include an address.  I find it sparks the interest of investors and they will contact me.  The other thing you will want to do is join your local nvestor association.  There are always  hungry investors there looking for a deal.  This should get you started. hope this helps.