All Forum Posts by: Wes S.

Fannie Mae
4 Bed/2 Bath, 1 car garage
List: $25,900 then reduced to $20,900
~45 DOM
Offer 1: $10k
FM Counter: $16,900
My Counter: $13,500
FM Counter/Accepted Offer: $15,900
Needs ~$3k-5k rehab, $475-$500 rent
ARV: ~$60k

Lets hear your recent deals!

Hey Guys, I'm looking at a REO Veterans Affairs Property that is being serviced by BOA...supposed to be coming on the market soon.

I'm going to put a cash offer in on it but I was wondering if you guys experienced an Offer Waiting Period? or Any Counteroffers? % of List Price accepted?

Just trying to load up on knowledge before I pull the trigger...any tips or insight appreciated. Thanks.

How did you turn out with this?

I just presented a SS package to PHH Mortgage and now they tell me they need a Listing Agreement as well.

I approached the owner in forclosure b/c the Sheriff Sale is coming up mid Oct and we put the deal together with completed docs. PHH is telling me to take a picture of the sign in the yard b/c they need proof it has been listed for 60+ days. I told the rep that I'm the buyer, no realtor comission for them and its a done deal but she states the investors will not approve b/c they'd like to see what other offers they could get. Not sure what to do...?

Any additional thoughts or experience?

We've had the same opportunity in 1 of our Investment Properties to refinish the floor....we ended up putting in a 7mm Laminate Floor that was cheaper to install than to refinish the old. It looks awesome, its bullet proof, dropped tools off a ladder on it and no damage. Also had a second floor leak with pools of water on it, soaked it up with a towel and still good to go.

Tenants can throw a rug and take their stains and smells with them when they move out...

It looks classy and is our go to move when rehabbing a rental.

Lumber Liquidators has good stuff for under a $1/SF and I install it myself, which is easy.

There has to be others out there...lets hear it!

Also, one good resource for HUD REO's, go to www.best-assets.com ---Click Listings/Bids --- Pick State you want ---- On Left side you can choose 'Bid Results' ---Choose City or County or Select All' which will bring up the last couple months of deals with DOM, List Price and Accepted Price'

This gives you good the facts of what HUD accepts and then you can base Adjust your offers accordingly....

Depends who its with...I did a shortsale in 2009 with CW/BOA and had a 2% (of PP) Buyers Fee. Input it in the extra lines of the HUD 1. I am not a RE Agent and there was no Agent involved, therefore no fee. I was happy getting some dough back to for all of my work, and I got a smokin deal on the property.

Just test it with the Asset Manager...I told him that "I am incurring a lot of costs and time into this thing and need to be compensated or you need to lower the PP...what are your thoughts?"

The worst they will say is No...and if your doing a short sale, the deal should be good enough where you have plenty of profit built in. You make the money when you buy.

Hey Guys, need your opinion...

I just put in an offer on a Freddie Mac property.

Decent Farmhouse on 3.2 Acres in the lovely Iowa Country with a couple outbuildings. It needs roughly $10k rehab and comps are in the $80k-$110k range.

List Price: $40k
DOM: Less than a week.
My Offer: $35k cash, $1500 EM, No Contigencies and quick close On or Before type deal. (Im pretty sure I'm the first offer)

The asset manager called me, because I requested a follow up from there CS Center, and he said that he is going to counter at probably $40k, I told him that I put my best foot forward and with the condition of the property and me offering no contingencies, I'm definitely leaning your way. He said thats policy that they counter, blah blah ect...

What do you all think? Haven't officially received the counter but have you guys ran into this before? Whats the Secret or any advice?

On the flip side, I do see an opportunity to make some dough.

Current Deal - Play by Play:

Fannie Mae REO- 4 Bed/1 Bath, good location, needs TLC though...probably $5k - $7k in rehab. Original List was $59,900.

Sat for 30 Days, just reduced to $49,900.

I Offered $25k with no contigencies, $2,500 in Earnest Money and close by month end. FM countered at $47,500....I countered at $27k and waiting to for their reply.

HUD Properties: If you purchase the property under the first 10 day window offered to Owner Occupants ONLY, you have to live in it for 12 months or atleast have the intent to. (There is a hefty fine ($250k) plus Jail time if you try to skirt the system.)

If you wait until the 10 Day OO Window has expired, it opens to Investors, then its game on and you don't have to worry about a thing...Its your baby.

Good Luck!

Mark:

How did this turn out for you?

I am looking to convert a small Motel into 5 Apartment Units and was looking at Electric WH for each Unit. I may have to provide the heat but want to seperate the water meters.

I'm curious... Thanks.