All Forum Posts by: Tom W.

So Was in the process of purchasing a property from a homeowner in foreclosure, She owed less than as is value and was going to actually receive some money from sell and the numbers still made sense. After speaking with homeowner, foreclosing lender and the lender's attorney there was no mention of a 2nd mortgage. When I get the payoff letter from attorney though, there is a line item of a Hud partial claim for 50k! Obviously this throws everything off and homeowner was completely unaware of this.

From the little I have learned, this seems to happen when homeowner get a modification, Hud comes in pays the back payments and then has a sort of silent 2nd mortgage that needs to be re-payed when ever they sale in future. I also see that it cannot be shorted and must be payed in full. The help I need is the numbers dont now work in this scenario, what other options do I have as investor? There has to be a solution that can help all parties involved.

Could you short sale the 1st mortgage for the partial claim amount? Is that even possible? Anybody ever deal with this? Any help would be appreciated! Thanks in advance

If I could get a list that went a year back I would get it. It might be alot but you can slim it down because all the files dont have property in them. Some people dont move forward for whatever reason while the case is open. I get calls from people who have held my letter for months and just recently finished their case. As far back as a year.

Sounds like a great idea, even if you get it started and it starts small it will grow quickly. Either way I am in, lets do it

This is awesome Sam Craven, really good to hear and appreciate you sharing this type of info. I know one thing that some tend to leave out and its also what I want to ask you to better help others when they are starting out.

It seems you had a period between when you started your journey and when yo landed your first deal. I know many see/hear the marketing of get started with no money and many try that approach.. But how did you budget between that time period and how did you approach the marketing plan to get started. Thanks in advance

Keela ChambersYes. This helps you determine how much its worth approx in current condition and how much for you to offer where it will still make sense for all involved. To determine ARV (which is the after repair value) there was a thread with @j scott where he had a pdf created to help with that.

With repairs you would be best to find a contractor who can help you understand some of the prices in your area. Some people have mentioned to pay a contractor to walk thru some REO houses and maybe that can help give you some clarity. All this is very important for you to have a decent grasp of if you are not working with someone who will walk you thru these steps

90k to fix up? That sounds like alot for such a small sq ft house. Are you rebuilding it? How sure are you of that number, if you are solid on it, it sounds like alot of work for limited upside.

But, just one man's opinion. Hopefully more chime in and good luck either way.

Hey Sibongile Yancy, there was thread where they mentioned both a title company (dont know if they double close or not, but if investor mentioned they most likely are investor friendly) and also a Reia link. Check it out, hope it helps.

https://www.biggerpockets.com/forums/55/topics/94181-beginning-wholesaler

Great question! Hopefully Dev Horn, Jerry Puckett, Michael Quarles and co Chime in on this. I have been thinking about it myself. I know we get a ton of questions on letters but from previous post all have mentioned intake and fulfillment is just as, or more important.

Welcome to Bp Daniel Cruz! Best of luck on passing your test and future RE endeavors!

Martha Chavarria There seems to be some meat on the bones of this, but you threw me off with the last line where you include max offer of 250k and 229k profit. If ARV is 480k, with 64k of repairs, taking this into account wouldnt profit be much less? (not taking into account holding cost, and transaction cost)

Hopefully we can get all this settled so we can make sure the numbers work and you can close!