All Forum Posts by: Nick Cifonie

At this point the property has already been to auction, and didn't sell...

We have close to 40 short sales in negotiation right now, and we can't come to any rational conclusion about why banks say and do what they say and do. It's amazing.

We've had them refuse offers of $120k, then sell the property at auction for 75k.

It may be the bank, it may be the Realtor. I'd suggest raising your offer 5k-6k, and re-placing it. Make sure they know you're serious.

If nothing else, wait 4-5 weeks, then if still available, take another go at it.

Nick

I know as a new investor it's really easy to want to jump at deals... but starting as a "motivated buyer" will soon make you a "motivated seller".

When I was new, I did 15-16 deals my 1st year... at the time I thought I was knocking them down...

Then after a short while I realized I should NOT have taken 4-5 of those deals AT ALL (took them sub-to) and they were not only a financial drain, but an emotional drain on me as well... for a couple of years.

I'm close to having them all sold off, but trust me and learn from my mistakes. ONLY buy if the numbers work.

Nick

It's odd, I've had tenants with terrible "credit" who were the best tenants... and I've had them with 700+ scores who I was calling and mailing the 5th of every month, and had all types of trouble with.

In either case, the best advice I can give, is when you finally end up with tenants, be TOUGH on them the 1st time they're late. The more you let them slide, the more sliding they'll do. Draw the line, and don't cross it.

Also, I highly agree with those above who suggested NTN. I've used them for years, the price is right, and the information accurate.

Z

Well, "normally", I would wake up in a cold sweat if I was even DREAMING of buying a property without title insurance, lol. Having said that, if your father and grandpa are the only people who have owned the house, I'd say maybe go without it, as long as you TRUST them both! (I'm in the middle of a deal right now where the family is fighting and backstabbing each other over a few $, so you never know)

I would definitely have a title check though, there can be a mechanics lien or something goofy...

Nick

I do a lot of sub-to deals, and find the hardest thing is getting the tenant/buyers to a point that they can "cash out" so you can get your "big payday" at the end of the deal.

This market has a lot of good sub-to houses available, and due to the lack of easy funding, plenty of buyers, but the downside is that most tenant/buyers never get their "poop" together and buy.

My suggestion, is look at sub-to deals like a long-term buy and hold, enjoy the option fees, and if someone cashes you out, consider it a bonus. Also, make sure you have some cash reserves in case your tenant moves in, but doesn't pay. It's not as risk-free of a strategy as wholesaling and option investing.

Z