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

Hello, everyone. I have a lead out of Bronx, NY. The seller's having difficulty paying the mortgage, so this is definitely short sale material. PM me if you're interested in learning more about this opportunity. It's a private seller lead, not something available via a Realtor.

By now most of us have figured out how we can get around the Non-assign-ability clause using simultaneous closings, but what about Deed Restrictions? I recently found the below article online that I thought would completely get around both and in in the process of putting it to the test on two deals I have under contract. If all works out could be make alot of Fannie Mae and Freddie Mac properties possible that were not before!

How it works:

1. Find the property, work the #’s, and determine the numbers work.
2. Make your offer by the name of an LLC named after the property (i.e.- 123 Oak st LLC).
3. Offer is accepted by bank.
4. Go out and get the paper work to set up the LLC 123 Oak St LLC, but don't file it yet.
5. Now, go out and find a buyer for the property.

FINDING DEALS:

Option#1 FSBO Deals:
1. Go to www.craigslist.org and pick the area where you want to invest.
2. Click on the HOUSING tab directly under your city name.
3. Switch the in ALL HOUSING to FOR SALE – BY OWNER to the right and individually type in the following words: EQUITY, FIXER, INVEST or CASH in the search engine to the left.
4. Call anyone that looks like it might be a good deal for your buyers That have been posted in the past 1-3 days.

Option #2 FSBO Deals:
1. Find the free online classifieds for the major local newspapers and get in the habit for searching the FSBO’s that came out in the last 1-3 days.

Option #3 Listed Properties:

Something I always hear is that people can't find an agent willing to work with them. I had this same problem, one told me I couldn't assign properties, another said I needed a proof of funds letter before he could show me anything. I went through eight different people, most acted like I was wasting their time. I decided on a new tactic, I took the attitude of,"this is my business, i'm in charge, you need to convince me that we should work together." So I put this on Craigslist:

Real Estate Agent Wanted

Is there anybody actively doing deals in my area. Marco Island, Naples Florida ?

Andy Stocklein

I know that some here on DG family use the yellow letters. I have started using them too and found little success to none. I usually get them returned to sender Vacant and unable to forward. I am assuming that the homeowner has been foreclosued on and the bank now owns the house. I am wondering what step in the foreclosure process it is in. I'm hoping for some Reo's to lock on contract and assign to my buyer's list and, if negotiating with the bank, will allow to lock on contract for at least 30 days. Any advice from the well seasoned investors on here would be much appreciated!

Thanks:

Investment properties can create liabilities. Things like parking lots, laundry rooms, staircases and tenants themselves can all bring liabilities to the property owner. Precautionary measures should be taken to protect the investor and his or her investment, and forming an LLC may very well be the first step in sound risk management.

A limited liability company, or LLC, is presently the favored asset protection vehicle for most real estate investors. An LLC combines the best attributes of a corporation and a partnership. With it, the investors’ personal assets, including the primary residence, are generally protected from claims by creditors of the LLC. The investors gain personal liability protection, tax advantages and other benefits, as well.

I am looking at a couple of duplexes...I've walked the properties, met the tenants, (most are long term-ers). Now time to make my calculations, so wondering if there is a different 'formula' to use when considering the numbers and making offers...I've got 2 recently sold very similar comps in same area. Also, one is a short sale, one is a foreclosure. Both are package deals having identical full 'sister' units.
What about rent rolls? I heard someone refer to those...anything else I need to verify?
I know the short sale process can take longer (60-90 days) as opposed to SFH which closes average 30-45 days, or less. And I've got some other info. from my agent to go by. Trying to compare apples with apples...

Anyone who has experience with multi-family props (duplexes)?

Hey Guys,
I recently had my agent present a wave of offers verbally. One seller came back interested, and my realtor got back to me with "agent sd seller will consider if cash and must include copy of earnest money check and proof of funds with offer." I am just starting out wholesaling and a little confused on how to get passed this problem, as I don't have the money for the proof of funds or earnest money. Where I am in Alabama realtors are asking for proof of funds and EMD on regular listed properties I'm not even pursuing REO's at this time. Any help would be greatly appreciated.

Thanks
Pat

I had my realtor call me today about a foreclosure that is in a really good neighborhood. The bank dropped the price by $21,000. Their asking $178,598 The property is 4 bed/2.5 baths/3 car garage on a little over an acre of land. It needs $15,000 on high end in repair mostly cosmetic(my brother in law was with me and he is in the construction business). I did comps in area and they are at $235,000. I even checked with the Real Estate Analysis system on here and it came back at $235,000. This is a bank REO and is not assignable. However, I was thinking of lining up a double close if I could get a buyer on the other end and get it cheaper from bank or joint venturing. I could do some of the work myself. Let me know what you think please! I am fairly new at this.
Thank-you for your advice.