All Forum Posts by: William C.

If the property hasn't appreciated over the time they owned it, I wouldn't expect it to appreciate while you own it. We just experienced the biggest spike in values since the 2006 era. Values can only go down in the near future in my opinion. Sounds like you'll get stuck with a property that needs ($50k gut Reno you said?) is a depreciating market once the section 8 tenant moves out or loses their voucher and no one else will live in the their filth. I'd pass, but in my market these same homes sell for $30k and rent for $1200, section 8 amounts are set by the county, so I could check online what a 3 Bedroom would demand. In your market this might be a smoking hot deal.

There is a reason people with poor credit have poor credit scores, they are poor at taking care of their finances and paying bills on time. Who goes out and buys a new car, when they need that money to pay rent? Next money it'll be something else. I'd follow your laws and evict when they don't pay, you are in for a long ride with slow, late, or worse never paying tenants.

Our state leases literally have a line at the very end at the bottom for the current owner to sign the lease over to the new owner because in our state, yes, the lease transfers with the property. It's also clearly stated in our agreement of sale. You said they used a contract, what does he contract say? There should be language regarding any leases, unless they made the contract up themselves.

Thank for chiming in Jay Hinrichs . There has to be a way to make it work for everyone. It's all comes down to the price and terms, more importantly the terms I think in this case, which is opposite of most "deals" On this site. Of course price matters, but my biggest concern would be the exit strategy and making sure I was able to do so within 30 years. Is this an MLS deal? Anyone have the info?

HomeStyle loans are a great product and jv helped a number of clients utilize them but I'd have to point out a few cons to using them, especially as an investor. For average Joe buyer that are the perfect loan for a fixer Upper since most don't have the cash to do the repairs and the purchase. Also, Joe buyer isn't buying the deal for the cash flow or appreciation, they are doing so to live in it. They are typically not going to do the work themselves for sweat equity. You lose the sweat equity angle as an investor. You also have to jump through a number of hoops to appease the bank. They want all the plans up front before anything is approved. It's grueling and somewhat expensive process, involving inspectors, HUD consultants, and GCs that are familiar with how it all works. Also, the rate is usually .5 point higher if it more. Don't get me wrong, it can work in some cAses, and it's great for a retail buyer, but based on your OP is sounded like you were trying to get into low value properties and looking for lenders who will service them. So far that I don't think this is the best route. If your thinking about a higher price range, and don't plan on doing any of the work then maybe it's a good way to go. I'd either go the blanket route, or find a lender willing to service that loan amount. I've heard the fees are in the 5% range since the loans amount is so low they still need to make enough revenue to make it worth their time and energy. I'd look into pulling the equity in your primary residence. Even if it allowed you to buy one more then you might have a better chance at a package loan. Or an option we use is buying properties cash and then we have a relationship with the local bank that will lend up to 70% LTV of purchase price with no appraisal and about $300 closing costs, total. So we can buy a $100k property, get $70k back right away and use that for repairs, then refinance into a loan term loan, or sell. You could do the same at the lower price point, accumulate a a few and package them up. I think their are plenty of options out there for you, you just need to try multiple banks, they all won't be willing to do it. And I'd save the homestyle loan for a fix and flip type deal rather than a buy and hold a low price point, but that's just me.

My uncle owns about 1200 units in Minneapolis, you looking in that market? I think he's looking to unload a few. Would be happy to connect the two of you. Maybe you could get with less money out of pocket if he has anything worth selling on terms.

Run the numbers. Would your cash on cash return be better on 1 deal cash or multiple deals with down payments? We can't answer this question for you, but we can give you ideas to think about. As mentioned before, it depends on your goals. What do you want? But I think the question answers itself when you actually start plugging in real property scenarios. We could speculate all day long about purchase price and rents but without facts, it's all for nothing. I think your market will dictate which is the best route to go. Can you cash flow with only 20% down? Some markets can't. Also, are we talking about 1 $50k property or 2 $200k properties, or 1 $500k property and 2 $1million properties. To many "it depends" to give solid advice. Hopefully some of these questions can help you come to your own best decision. Best of luck. Good "problem" to have.

Wouldn't the new owner have the right to collect rent from the other owner? Jay Decimas book, making money on fixers or something like that talks about a deal he bought and fixed up, then sold off half the interest to a wealthy doctor for a premium who gained tax befits and a little cash flow, and then also the proceeds from a future sale. I'm nit an attorney, but maybe one could chime in for entertainment purposes, owning half the deal would give the new owner some sort of ability to charge rent, or no? Also, how do you get both parties to sell? What is the new investor is ready to cash out his "parked" money but the old seller still wants to live there for free and refuses to sell? This is either a joke, or obviously a pipe dream of the guy trying to sell off his interest. Would love more info like a MLS number or address so I could take peak. I'm also curious to know what agent would actually take such a listing. What a waste of time. It's really no different than a seller listing their home for $300k when it's clearly worth no more than $200k. Sometimes sellers think there's people out there with more money than brains and will come along and accidentally over pay $100k for a home, cash non the less since an appraisal would never fly. More details please! This is not something anyone would look at seriously but I'd love a few laughs taking a look at the pitch.

Tanja Davidson I'm sorry but you are wrong. There was no offer presented, and your confusing buyer side with seller side. He did not refuse to submit an offer, no offer was made, the name hadn't even been seen. An agent has every right to refuse a showing based on location, time of day, mood at the moment, commission, anything but discriminatory reasons. I reject showings all day every day when buyers with no money, on credit and no clue want to go look at some house because they watched an episode of Flip this house on HGTV. I tried to get more info from OP but never saw a response. Was the plan to pay cash or were you going to finance this deal? Loans under $75k are not easy to come buy, and cost major points, for the same reason this agent didn't want to show it. A ton of work for little reward. Anyway my point being are we 100% sure OP could perform on this deal? I'm not saying she couldn't, but there's much more that goes into the whole picture than "he wouldn't show me it because he would only make $500". The chances of it closing were probably on the low side, and jumping through the REOs hoops could have been the real deterrent. We are only getting one side of the story here. Iv said it before and I'll say it again, it should have been handled differently, but I'd pay money to hear his side of the story. Regardless, No violations were made. He made a mistake, but it's been debated heavily throughout the thread that he didn't violate any ethics. He was just an insensitive moron for a moment. I'm sorry but I feel the need to correct bad info on a site like this where people come to learn. If they learn bad info they might as well learn nothing at all.

Originally posted by @James Murphy:

Originally posted by @Jacob Villalobos:

@Tracy D.

Racism is real. Racism in lending is real.       

http://atlantablackstar.com/2016/01/31/study-racia...

LOL at that source.

Not biased at all.  Clicking on the link led me to lots of anti white articles.  Take your racist propaganda elsewhere troll.

 I have to agree that article is a joke.  The "study" was as far from scientific as you could get.  Then they equate the low response rate to an actual number equivalent of a lower credit score.  How is that even possible.  My favorite part was where they cited that Black and Latinos were denied at twice the percentage of white people.  What they forget to mention was exactly why these applicants were denied.  Did it ever occur to the writter that it has nothing to do with skin color but maybe it just so happens a larger percentage of Black and Latino applicants didn't be have the income or credit score to qualify yet still applied anyway?   Discrimination is wrong.  But to twist the facts to make it appear as though it's  happening but with absolutely no proof is even worse.