Buying Foreclosures, REOs. Short Sales, FSBO, MLS and More

Whether you’re a retail home buyer looking for a foreclosure deal or an investor who hasn’t yet negotiated with a lender on a foreclosure, you need to know that it’s a whole different ball game from negotiating with a normal seller.

People who own homes have a certain amount of emotion invested in their home. They may even set an unrealistic list price because they’re not fully informed by their real estate agent about the current market value of their home. In situations like these, it’s not difficult to get into a situation where your offer in some way offends the seller and they tell you to take a hike. Emotion and business rarely coexist well.

Just after the real estate and mortgage crash that started in late 2006, the term “short sale” was largely only known by investors. However, as more homeowners became delinquent on their mortgage payments and housing values dropped below what they owed on their loans, the short sale became the topic of a great many news articles.

It seemed like a great concept to offer a bank the option to take a sale amount below the amount owed, especially since the home couldn’t be sold for what was owed anyway. Unfortunately, banks and lenders resisted, either intentionally or through drawn out processes being handled by stressed out staff members with too many deals to handle.

This is in no way intended to be a negative article about real estate professionals. However, as in any profession or job, there are varying levels of competence and dedication. Whether you’re a buyer or seller in a real estate transaction, you should pay attention to details and not place blind trust in any professional. One of the areas in which you can run into trouble or use a mistake to your advantage is in the many deadline and due dates in a real estate transaction.

• Delivery of contract copies.
• Offer and counter offer acceptance or response deadlines.
• Completion of inspections and delivery of inspection reports.
• Response to reports and objections to their contents.
• Appraisal deadline due dates.
• Survey deadline due dates.

What kind of business entity should I use if I want to strictly wholesale, for tax purposes

thanks

I found a neat article on the internet that gave me some cool ideas about buying either a condo or a home. I hope this helps you like it helped me.
I look forward to hearing your thoughts too with this idea.

By Melissa Paul
Buying a home is one of the biggest and most important decisions you’ll ever make. Whether you are a first-time buyer, or a veteran homeowner looking to trade up or make a new start, you will inevitably be faced with a number of questions. Your answers will lead you to the home that’s right for you.
One of the most fundamental questions all homeowners face is whether to buy a condo or single family house. There are advantages and disadvantages of each and only you can know what’s right for you.

100% Tax value of 38k for a 1/2 acre of land priced @ 8k obo w/ all utulities?... Could this be a deal i can charge my buyer for land 10k instead of 5k? Just cause how low priced it is?...

And I havent begun to look up the TRUE VALUE of it yet?... btw all the above numbers have been verified through the courthouse!

Matt Larson recommended I use the mls to find deals.
I tried to use the mls. My real estate agent won't accept offers below 15%. I can not get any wholesale deals like that. I am going to look for deals some place else.

I'm new here at DG family. I would like to get more ideas on the techniques or the How to Negotiate on a Pre-Foreclosure Property. This is the Scenario:

The Property:
The Property is vacant and ready to move in.
3-bedroom, 1 Bathroom
1 garage
1080 sq.ft.
single family residence
Built: 1978
Noticed of Default 10/04/2012
Original Loan : $250,000.00
Date of Original Loan Recording: 04/26/2006
Amount Default: $10,000.00
Transfer Value: $ 226,000.00
Date of Transfer: 3/04/2004
The estimated Value: $220,000.00

Tax info:
Assessed Land value: $43,800.00
Assessed Improvement value: $ 117,000.00

My Questions are:
1. If you're the Investor who find this Property, How do you make a good income on this Property.
2.What are the techniques you'll use?

Hello DG Fam!
Have an issue here in South Florida and would need some advise...

We got a property from an REO (Ocwen Loan Servicing) and we went to see the house as we usually do it being close in the area. We typically put a "House for Sale 3/2" sign outside the house if it is vacant for exposure. It has worked well for us in the past until now.

Hello everybody..this is a great forum! I have a question. I have my eye on two properties that the bank has a reo and a forclosed property! I know the repair cost and what it will take to do the job..the cost of repairs are low!

i know this caused i cleaned them out for the bank! I know these are good deals how could i offer these to my end buyer who may be interested. I know the end buyer pretty well could i just sign some type of agreement with my end buyer that states if he buys the property we settle on a fee! That would put me out the pic and it will be just be btween the investor and bank?