All Forum Posts by: Tom C

I've thought about buying a few cheap lots in our city, but I really don't want to pay the taxes and insurance on it and also be responsible for the maint. $100 bucks, nice job!

Tony,

It's actually pretty simple. It depends what you are doing with it. If it's rent to hold, then you have figure in your cost of purchase, rehab and holding cost based on the rents you can obtain. If you are flipping it, then it's based on your rehab, holding cost and the expected profit. Once you get a couple under your belt, then you will know how to walk in and make an offer. The most important thing is getting in there and make the offer, it's too low, they will kick it back with a counter offer.

Same as Mike, due to the fact I have several tenants on SSI and Sec 8. $25 late fee if paid after the 4th.

By the time I go out to the house, I have been watching it for some time, already ran the numbers and knew exactly what I was willing to pay for it.

Many times it's completely trashed and I walk away, sometimes it's minor repairs and adjust my offer according to the amount of rehab, but I never go back out a second time to think about it. It's either buy it now or walk away.

First

HUD

List $28K
Offer $24K
Accept 07
$8K in rehab
Appraised 2 months later for $64K
Holding as rental $550 per month

Second

Northwest REO
List $27K
Offer $16K
Accept 07
$3,500 in Rehab
Appraised 2 months later for $58K
Hold for rental $625 per month

Third

Fannie REO
List $24K
Offer $12K
Countered $14K
Accept 08
$3,500 in Rehab
Appraised 1 yr later.. Got F'd due to new appraisal rules.. Appraised for $38K
Hold as rental $550 per month

Pics can be seen at my profile

I usually watch a property sometimes for several months until the price comes down to what I am willing to pay. I then go in and usually offer 1/2 of the listing price. My last REO went from $42 to $36 then to $24K within 6 months. I offered $12 and they countered at $14K plus CC.

I grabbed it. It was a Fannie, they never pay closing cost. Like others have said. It's all based on what you are willing to pay for it, then low ball the offer. Worst they will do is counter.

I can say that I did do it correctly the first time, but only because I spent six months out here researching and listening to people like MikeOH and many others. If it wasn't for them, I am sure I would have made the same mistakes.

Hey Brian. Nice to meet you. I am in Trumbull County about 30 mins north of you. My Father inlaw is a cop for Akron PD. I have been trying to get him to jump on board and start investing, but he is one of those people who love to talk about, but never makes the leap. Let me know if I can offer any advice.

Feel free to ask me about certain area's of NE Ohio near Youngstown, just not Youngstown. I wouldn't touch that area. Sorry Bjarne, don't mean to crack on your investment area.. :)

Are looking for current deals or deals period? The 3 that I have done are over 1.5 yrs old and the market has changed a lot since then.