All Forum Posts by: William Coats

I agree the numbers look risky but here is one route...have the seller carry owner financing on the property short term 1 year...put a sizeable down payment and before closing show good faith by purchasing materials for the property improvements...that way the seller knows worst case scenario if the deal goes bad they will get the property back in better condition then when it was sold...Then assuming all goes well with rehab you should have enough equity that you could attract a good HML...make sure to let the seller know what changes will be made to the property and be sure they are authorized in the terms of the owner finance transaction. The best way to make a seller finance deal fly is to make default a winfall for the seller...

Wow probably one of the best threads I have seen in a while...the one statement that I have heard in relation to GSE's like fannie and freddie is "Privatized Profits and Socialized Losses" when things are good they get to profit and when things are bad we the taxpayers bail them out...Its amazing what the american free-enterpise system can do when given the opportunity...just look at all of the entrepreneurs that have creatively solved many of the problems that our government has created in relation to our current mortgage crisis...free markets work when they are not in competition with the government...either way this is gonna hurt for a while but I would prefer to have government out of the mortgage market completely...I think it would be the best thing for long term stability...

I would consult an attorney...your renter may now have an ownership interest as a "Joint Tenant"

look up wendy patton...she is on BP...she has a good book on lease options that answers your specific question...

minor errors such as that can be amended before recording more easily... In the future always closely check your deed before closing. I have found quite a few errors like these just before closing ...these are commonly referred to as a "scribners" errors after recording and are not to difficult to amend as long as the intent of the original is clear...

Condos can be very risky in a declining market...
value is based on comps but you have to focus on what the comps will be in the future... For instance if the age of the complex in this case is 5 years old and most of the buyers bought for 230k then most of the owners are way underwater...when your neighbors hear that units are selling for close to 100k less than what they recently bought for it will lead to a rash of short sales and strategic defaults...However if the owners have been on title longer and hove more equity you could be in good shape...but if you want to see how bad some condo projects can snowball do a search on condos in florida...its nuts down there...they can go from 150k to 25k fast!

even if they are sold on the 10th day it is still likely an owner occupant buyer, because they do not review any offers until the 10th day...even if a buyer was an owner occupant and bid a million dollars over listed price it would not be reviewed until the tenth day...

Not all that many end up being bought by local municipalities... but when they do iit will ususally be quite a few at a time...

I just spoke to someone who was trying to purcahse a home and using blazevic as the funding company...these were individuals in the process of getting foreclosed on and they were trying to purchase a home only a month after redemption expired on the house they were losing...they were not happy with the process and dissapointed that they were trying to discount the purcahse price and markup to them...basically they wanted to buy a home for around 110k, blazevic was going to offer about 70k to the homeowner and then take a down payment and carry around 100k note with the end buyer...they did not mention having to pay any upfront fees...although they were frustrated... I did not hear of anything illegal from this particular individual...If any private investors or brokers know of anyone else that would be willing to do a deal like this with someone that just got foreclosed on please let me know...I have tried to do deals like this before as a real estate broker and I can tell you they just never seem to work out...either the buyer gets cold feet because the markup is to high, or the investor gets cold feet because the return on investment is too low and risk is too high...

Wasteful government spending go away??? Doubt it...at least not anytime soon...You are a property owner so I am sure you pay tons of $ every year on property taxes, income taxes etc. so in a sense you are funding the wasteful section 8 system...One thing that could possibly trigger the government into making a change to this program would be posts in which an investor touts that he is making twice the market rate of rent and referring to the program as a "gravy train" (just giving you a hard time)...I think what you meant to say was that it is a vital government program that helps the community and that you could charge more rent but you don't because you only want to make a modest income...