All Forum Posts by: Tony Salazar

[quote=J Scott
- I will often replace the kitchen cabinets, unless the existing ones are in pristine shape (in which case, I'll change the hardware to match the rest of the fixtures we use).

- I'm a lot more lenient on replacing bathroom vanities, but if there is any damage to them whatsoever, I'll replace them to match the kitchen cabinets. If I replace the cabinets/vanities, I'll always replace the sinks as well.

Hey J Scott, I like your business approach.
Just a couple questions:
1. I haven’t been doing window coverings unless there is an eyesore or privacy issue. Why do use them?
2. In kitchen & bathrooms, if the cabinets are in good shape, then I will have them stained a dark mocha with new hardware, instead of leaving them the plain light oak. I feel it has a more prestigious look (especially in pictures). What is your thought?
3. Why don’t you always spice up the bathroom vanities?

Actually for Calif, these numbers work as long as you know the area, ARV is true, and rehab is only 15K. Return is 17.5% in 4 months. Proceed to your next step.

Remember in life, the difference between success and failure is a small small line. Any small advantage you may have will indeed help and you must use all of them to win. Don't play the sideline game and over think everything and never take action steps. Action steps are the SECRET that everyone is looking for. Buying REO's is a numbers game. I have purchased REO’s by having my clean all cash offer in as soon as it hits the market, communicating with the listing agent and reiterating to them why they should take my offer. If your offer is netting the bank what they were expecting, then that could be enough to satisfy the asset manager. Also there may be a push from the bank to clear this property for internal reasons. So yes it can make a difference by knowing in advance what new REO listings are going to be listed shortly. Put a system in place that you are willing to commit to, take major action steps (secret), improve your system some more, then take more major action steps, and keep repeating this process. Best Wishes!

These are great examples.
In addition:
Are the comps distressed (REO's, Short Sales) or Standard Sales?
What is the activity level like?
Is it a buyer's market or seller's market?
How much Inventory is available?
Is this property highly desirable or a dime a dozen?
If you offer too low, you will more then likely never buy, and if you offer too high, you won’t get the return needed.
Out here where I am located, I was receiving multiple offers on my flips, all within one week of listing. That has now changed, so my offers need to reflect that and be more conservative.

Thanks for all input. As 90 days doesn't seem long, it is just another adversity to face in case I can sell and flip earlier. I have flipped enough to have skin, but I can say the market is softer to sell today then so in the last 18 months. So I want to have as many issues eliminated as possible. Also if this was an exceptional deal, with minimal work, I wouldn't sweat it.

Here’s the deal.
I just got my offer accepted at 132,000 on a REO that the seller is Fannie Mae. Inside the Purchase Addendum it states that I can not sell the property for more then 162,000 within 3 months of closing. This property is not livable and needs many repairs. My projection after rehab was to sell for 195,000. I don’t want the seller to dictate after I own a property, on when I can sell or for how much, especially since it is a cash offer. I sometimes can rehab and close escrow in less then 90 days.
Has anyone been able to counter and remove this? The strange thing is I had this property locked up and accepted on a different occasion about 60 days ago and the contract didn’t have those terms in there.
So moving forward will this be the norm for Fannie Mae? I lost another accepted Reo offer that had this in it, and they wouldn’t remove it. If you notice on REO’s they are making it more difficult for investors to buy, by not allowing investors to write up offers until property has been “active†on MLS for X amount of days, and basically giving the first right to purchase to owner occupants. In addition there are closing cost and real estate commission incentives to owner occupant buyers and their agent, but not to investors. This transaction had a 1500.00 real estate bonus for the buyer’s agent but since it is non-owner the 1500.00 bonus won’t be given.
Any input on this would much be appreciated.

Great job Brian. Are these local or out of state?
I would also like to hear from other Investors flipping in Southern Cal on a regular basis?

Peace Out.

I have Flipped 10 out of my 12 properties, and preparing to close the other two. This has been so in the last 18 months here in Riverside County, Calif with average resale amount at $216,000. Market is extremely competitive, and is more then meets the eye. Who else is flipping out here on a regular basis?

Don't wait too long to do the things you want to do or accomplish. You can have almost all of it now, so why wait?
Our health will slowly deminish, and you may not want to do the same things when that time hits.
So, make sure you plan short term and mid term goals, and do a lot of those retirement things now while your health is in order, and you can still enjoy it.

Ok Wes, Here you go:

Purchased on 2/1/2010 from Aurora Loan Services for 125,000
List price was 119,000
Riverside, Ca.
Small 4/2
Rehab 15K
I Listed at 175,000
Sold for 187,500 and closed on 03/17/2010 to all cash buyer

46 days in project from start to finish from rehabing, listing, and escrow. I am grateful!

PS: I am looking for another REO to purchase, must be in the Inland Empire.