All Forum Posts by: Sheree H.

Thank you, Fran! I appreciate your clearing me up about equity. I thought it was what he's paid on his mortgage.

I'm using a website, Foreclosures.com, that actually does give me a number for equity that I think is based on the mortgage balance. It has a disclaimer that it's based on the primary mortgage and it would be inaccurate if there are other loans on the property. I check the property and owner records for that.

So the formula I'm using: ARV * .65 - repairs = offer price. Offer price - back payments/fees - loans = what owner gets.

Is this not feasible with a distressed owner? What is a good formula to base offers on? And how does equity figure into it?

I'm super new at RE and have to look up almost every single acronym you guys use, so please bear with me if my questions are mind-numbingly basic. I searched and read about equity, subject-to, and attorney, I have about a million tabs open, and I still don't understand!

First, I don't understand how equity fits into forming an offer, specifically using this formula I got from a "guru" for buying/rehab/selling subject-to:
Property MUST HAVE at least 30% equity. Then, ARV * .65 - repairs = offer price. Offer price - back payments/fees - loans = what owner gets.

What is the purpose of having at least 30% equity? Does it make a difference that the "guru" lives in SoCal, while I'm in GA?

Also, what is wrong with my math? I'm obviously not seeing something here.
An example property I'm researching:
ARV = 200,000 (low estimate, comps selling 202k-212k)
Equity = 60,100
So my offer = 200,000 * .65 - 30,000 (low estimate at $10/sq ft) = 100,000 ??
If I understand correctly, he still owes 140,000 on his property, and my offer of 100,000 is waaaay lower than his loan. This won't even cover his loan, much less his back payments, and basically he's going to have to pay me to buy his property. I am very confused.

Finally, to do a subject-to/rehab/resell, do I need both a RE attorney and a title company, or is one enough? I'm going to contact an attorney to walk me through steps / contract papers, and his website mentions doing title insurance, title searches, and reviewing title reports, etc, so why would I need to look for a title company also?

Thank you so much!
Sheree in Atlanta

Thanks guys!

Quick question, in addition to those I asked earlier...
Are you members of the local REI Club, and if so, how do you find them useful?

Cheers,
Sheree in Atlanta

Hi guys and gals! Looks like there's a lot of us starting out in Atlanta. Is there too many of us here? Do I need to move to have a chance at succeeding? :D

I found BP when I was researching a guru I'd ALREADY PURCHASED from. Stupid, I know. But I found a few threads here and started reading... one thread led to another... and then after listening to the terrific podcasts, where honest people were sharing things without asking for money or selling anything, I decided I just needed to be a member. :D

Anyway, I've been reading and studying RE investing off and on for years but never doing anything. Last year, my husband decided to start medical school and I had baby #3, and I realized my job (web development and internet marketing) wasn't going to be enough to pay for medical school and three kids. Plus I'm tired of working for someone else's vacations and dream cars (the brother-boss bought an M3 last year, and just received his Tesla S two weeks ago).

I have my plan on my profile. Basically I want to start off buying foreclosure properties "subject to," and fixing then selling them, until I have enough to start buying rental properties. Please, anybody, look at it and tell me if it's do-able. I love criticism. and I am DETERMINED to make this work.

Current questions I have:
-WOuld it be wise to hire an attorney to write up the contracts and legal stuff before I start making calls?
-What is the best place to find a mentor in this area of RE investing?
-Would love any tips from women who have < 6 month-old babies!

Thanks! I'm excited to be here!

Sheree from Atlanta