All Forum Posts by: Steve Babiak

Originally posted by Kirk B:

I made this as a quick reference for myself. If you find this useful/errors please let me know.

Good idea to chart this. I believe I have found a mistake in your chart. The first 4 lines - per $1, per $5, per $25, per $50 - all seem correct. The next line is where the trouble begins. You have the rent there as $300, but I believe that the correct amount should be $100; if you were to multiply the offer number on the per $50 line by 2, you would end up with that offer amount shown on the $300 line (more or less), but that would have been at $100 rent since we just multiplied by 2.

And every line below that is also off by $200 in that original chart if my computation above was accurate.

Please post back if you agree or disagree with my finding on this.

If you are wondering how I discovered this, I had one I looked at recently where rent was $1000, and offer limit was around $70K for 7% rate; comparing that to the chart shows a big difference. Now I would say that the $60K number you have for 7% rate fits for $800 rent; and then I just worked backward.

If I am interpreting what you wrote correctly, you wish to acquire properties from the inventory that Green Tree Servicing manages. If that is the case, then your employer would probably be the one with the info as to whether that would be permitted or not.

I believe you should be OK if you are buying FNMA inventory from other servicers; shouldn't be any conflict of interest there. And why are you being specific to FNMA inventory? Don't impose this limit on yourself. Grab any bargain REO you can.

The arrearages tend to grow very fast, so the balance owed will rarely be as low as you might guess.

Things like late fees, inspection fees, vacant property insurance, forced placement insurance, attorney fees, accumulated interest on all of those fees, etc all add up fast.

I once saw a property that was originally financed at $105K end up owing around $180K at the sheriff sale, with around 6 years between the date of the loan and the date of the foreclosure.

And your profit is what remains after the debt service, so typically you would allocate $100 per unit for profit (or cash flow), and then what remains is available to pay the loan.

In some areas, double cylinder locks are a code violation - even though the local hardware store sells them.

Rich Weese turned me onto this one, and I recommend it:

"The Truth About Money" by Ric Edelman

Covers many different aspects of money management and financial planning. Very small section that covers real estate, so not specific to real estate at all.

Welcome to BP Arron.

The post you referenced, from Ian, was a one where the poster (Ian) proclaimed that his expertise would be available for a short time; the reaction to that may be what makes you hesitant.

That is a taste of how one can expect things here on the site, if one stoops to tactics that the site's members find distasteful. Sometimes that is a good thing.

Paul,

That link to a "review" is from an affiliate site; that affiliate site will share in the "take" of revenues for all orders placed through the affiliate.

I would be very skeptical of any review that originates from such an affiliate site, as they have a stake in converting visitors into orders.

Not that I would know, since I'm not an agent - but since you paid good money for training, you would think all of those questions would have been important enough to get mentioned in that training.