I really, really need ur help guys!!

22,

I'm not an expert by any means on this matter, I am still looking into making my first deal. I have already had a few offers put in on property but it just hasn't swung my way as of today. That being said I thought I would offer you some of the thoughts I would have if I was in your shoes here in my home town.

If the FMV is 150K, that is good to know.
?What is the appraised value of the house?
?What is the ARV (after repair value)?
?What are the comps in the area?
?Ask to see any documentation she has on work done to the property? (this could be a roof replaced, appliances recently bought, you said that the house needs work but are their any parts of the property that are in good shape begs the question of any warranty that may be applicable for you)
?What are the repair costs to the property? (take a note pad, pen, measuring tape if you need to measure room sizes to est. sq footage of walls, ceilings and such for paint costs/coverage and spackling for the ceiling - just some things that you would need to know if you were doing it yourself and helps draw a margin of profit)
?Amount of back taxes?
?Amount of back mortgage payments?
?Penalty amounts?
?Any landscaping needs? (what will the costs be of a new sod yard, replacing sprinkler systems and so on)
?In general, what will it take to make her house look like other houses in that particular neighborhood?
?Amount of mortgage owed to bank?
?In consequence that tells you a rough estimate of equity in the house?
?So, does the basement/foundation leak water?
?Sump pump?
?Any termite damage or past treatments performed? (look at exposed wood such as studs in basement or crawl space, garage studs, old termite traps in the yard?
?Back to paint, on the exterior, what is the est. cost of paint based on sq footage to repaint the exterior or..... is vinal siding a cost effective remedy?
?As far as repairs go, if you will need to replace sheetrock or some other wall covering such as a wall board/wall panel material, what are the costs of materials at Lowes, Home Depot etc.?
?Measure area needing carpet assuming you will end up replacing current?
?In other ideas, what flooring costs will you incur if you tile the kitchen/bathroom floors, or if you install laminate wood flooring where carpet once layed?
?Windows, do they need to be replaced?

I'm kind of running out of things that would be on the tip of my tongue if I was walking in there, but these are some ideas to be aware of. Some of this information you can get on your own at local stores, real estate agents, lawn care businesses, nurseries, local court house and ect. Some of this will be your own judgement and measurement. Some will be her words to you, and some may be documentation she produces or that she has received from the lender and so on. But I think that you may get the idea anyway. Some of these answers may come from simple phone calls to contractors in the area/state that will tell you or example that it would run an average of 400$ to replace a window of normal size or cost x number of $ per running foot to retrim the interior of the home.

I hope this may help give you some direction or make part of this experience simpler than it has seemed so far!

Jeff (14nerguy)

This just happened to me yesterday. We had sent out direct mailings and after getting two responses thought they were a dead end. But someone held on to the letter and called.

First look up the property on your property trend software if you signed up for the coaching program and received it. It will tell you who owns it (the lender)- what they paid for it - and any other loans taken out on it after the original loan. *Tip - if you don't have this software, you can find all the information at your county records office for free. Their computers are available for your use. If you don't understand how to find what you want - ask. They are very helpful when it isn't over busy at their office. #Another Tip - call ahead and ask when they are the least busy.
Go to whatever websites you use for your researdh. I use:
The MLS that I have gotten access to from a realtor
http://www.totalviewrealestate.com
http://www.zillow.com
http://www.trulia.com
http://eappraisal.com

You can also call a realtor and ask if there are any properties in that area for sale that are similar. "Do you have any three bedroom - two bath houses in the _____ area?"

Once you know what similar homes are going for in that area you need to determine exactly what is owed and to whom. Ask about a 1st trust deed - is there a second...a third? Do you owe property taxes? How much are they added up? When is the sale date (when the house will actually be sold on the auction steps)

Do a walk through of the property and get an estimate of costs to bring it up to "good" condition. Once you get basic estimates for the cost of carpet and paint and the other basics, you will have that information for your next house and won't have to get that information again.

Add what is owed with the repair costs, holding costs (monthly payments, insurance, getting utilities transfered to your name, etc.) Now subtract that from what the ARV After Repair Value of the house is worth (remember the comps you got of other houses in the area) If there is room to make a profit then you put together a deal.

If not, you may be in a good position to go for a short sale.

Hope this helps.

Wendy

check out this website put the adress in and click search, Dean gave this to us a while back and it works great, http://www.totalviewrealestate.com/ than what you can and should do is go look at the house, take a camera with you, do your meet and greet, and move on to looking at the conditions of the house! remember if you know nothing about building or remodeling you should do some re-search before making your final offer! you see the banks do not want the house to go on foreclosure becouse they will have to come up with a bunch of money to do so, whitch mean that you can stop foreclosure by submiting an offer, but first thing you should do is explain to the lady what you do and how it works for instance, since the house is going on foreclosure you want to let her know that it would be best to make the bank stop it right away and how do you do that, you get the house under a contract with the owner, you show the bank proof of funds, pre=aproval letter from your bank or one of the investors you are working with. than you call the bank and let tham know you are interested in purchasing the house. once the bank sees that you are a serious buyer they will stop the foreclosure process and keep the house in the pre-foreclosure status, whitch in turn buys you time to come up with a fair offer to submit to the bank!. once you agree on the price since you already have the owner sign the contract in whitch you mention that you could also "assign" (right besides where your name is), you are now ready to simply flip that contract to one of your investors and tata u jst made money!

sounds simple but its not so please make sure u dont mess up the contract any error could cost you alot of money so use an atterny or a real estate agent you could trust!

holpe this was helpfull

You have to know what is owed to find out if this is a good lead or not.

Be careful to disclose that you are an investor and are planning on profiting. In California if a Notice Of Default has been filled and you are not planning on living in the property and you do not disclose (proper forms) There could be repercussion including court action and rescission of the deal.

Good luck
Jimmy

Say it over and over "I am a real estate investor." I remember when I would say that and not really believe it. Now I say it and I mean it. The conviction in your voice carries through to whoever you are speaking with. They are then much more likely to believe what you say and know you mean Business.

Thank you guys for the replies! Seems like the homeowners who call me are pretty far in foreclosure and have little to no equity. However, I want to vist them, because I'm convinced I can learn a great deal for the experience.

I had another call from a lady today!!
So far this is what I have gathered:

1st lady...
Called and told me she is very far in foreclosure.
FMV is 150k, TotalView 144k, Assessed value 122k
Mortgage Default 110k (4closurealert.com)
Property taxes due 1,800
Attorney fees? (Don't know)
Needs some remodeling, according to homeowner.

2nd Lady...
Property was given from parents (free-n-clear)
FMV is 90k, TotalView 96k, Assessed value 70k
Took out 1st mortgage of 70k, HELC for 30k
Property taxes due 820
No attorney fees yet...
Utilities bills due... House has no water, electricy, vacant (lives across the street /w father)

Needs a major overhaul; house has been vandalized (holes in drywalls, broken windows, ex-boyfriend was a bad handyman (unfinished bathrooms & kitchen)

I also learned that the bank wants her to sign papers. I explained be careful to what you put your name on. She hasent signed anything yet, but I suspect its a deed in lieu of foreclosure.

BTW Jeff thanks for the questions, I'll make sure to write these down at the day of visiting! Gracias!!

I have a question Luiz, why would I submit an offer with the homeowners and also submit an offer to the bank? Doesn't the offer I submit to the homeowners cover the cost of all liens and fees at closing? or am I missing something here??

I say this everyday in my mind & to others. I love the way it sounds & have even made my own Business cards... I truely believe I will succeed in this lucrative investment world it is my passion and ultimate goal.

"Nothing else in the history of the world has made more millionaires that RE," as Dean say.

I wish I could afford the coaching, but maybe if I make one of these deals stick and profit, I will call up and join ASAP.

I'm guessing in the position that these homeowners are, I may need to set up a shortsale. Which is something of a new language to me. I know know the basics, but dont know the ingredients to the pie, or the prep...

If she is that far into foreclosure you need to do a Short sale package,if it is accepted at about 70% of FMV you could make a nice profit and flip the property in a double closing and the bank would pay the closing for A-B and your buyer will pay the closing on B-C.Do your Comps and talk to the owner about doing the Short sale package.

whurndon

H&H PROPERTY SOLUTIONS LLC

Here is the update...

One home was in Merritt Island, FL. Wow; all I can say is about 25% of the home is salvageable. No kidding, everything that could be wrong with a property literally needs to be done! The property could cost about the same as the ARV once everything is said and done. Here is a quick list: foundation problems, holes in drywall, new paint everywhere, 2 new doors, 3 new windows (broken), grass has been dominated by weeds, trees have overgrown into driveway, driveway cleaned, No central A/C, all new flooring through the house. Kitchen needs cabinets, flooring, appliances, new screening outside, carpet pulled out. One bathroom needs to be finished, the other needs to be gutted and redone. She also had something listed on her entrance. Safeguard properties and I believe it’s a 3rd party trying to stop the vandalizing and acquire the property for the bank?

She owes 110k to SunTrust between refinancing & HELC. Comps range 90-110k, estimated FMV 90k.

2nd home is 5minutes away from my house. The home is in a beautiful neighborhood where its just a u-road off a busier street. Its also in a better condition. It does have between 50-60k worth of work. Needs paint in/out, garden needs weeds pulled, fireplace doest work correctly, carpet needs replacing, outdated appliances, bathroom water doesn't work, 2nd bathroom needs updating, living room needs a new wall. The most expensive problem is the septic tank it has a drainage problem when there is a heavy down pour. Its not elevated and water just sits over the tank which could cost 30k? to fix this problem.

She owes 110k mortgage, 65k HELC, 2k taxes to Bank of America. Comps range 140-170k, estimated FMV 150k.

I may have not found the best deal, however I felt like I remembered why took this route. I really want help these owners in distress. I wish I could help these people, I really do. However, I believe the only thing they can do is a short sale.

Could someone explain the process to make this deal work, or is there no hope??