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

I am running in to quite a few students and investors who are not including inspection contingencies in their purchase contracts. If you are wholesaling it is vitally important to have an inspection contingency in your contract to use as an exit mechanism in case you cannot find any investors to take your wholesale deal.

Flipping in a nutshell is purchasing a property, and then selling it for profit. This process is generally carried out in a very short amount of time, making the flipper a decent amount of profit, in the shortest time period possible.

People have been flipping homes for decades, however the term is only now becoming popular, as is the practice of flipping a peice of property.

Generally when in search for a house to flip a flipper will look for a house in duress, whether it is a tax lien home, a home being foreclosed upon, being sold in an estate sale, or just a house that is showing many signs of age, the flipper is looking for a house that can be bought for much less than it will later be sold for.

It’s easy to overpay for a FSBO.
The biggest mistake home buyers make when buying a house that is sold by owner is overpaying for the property. It’s not just that you can’t compare one house to another in terms of size and amenities.

With a FSBO, you need to think about the possible financial impact of issues and neighborhood changes that aren’t readily apparent. For example, if the developers of a 6-story apartment building have received approval to build on the lot behind the FSBO property, the seller may not be legally obligated to share that tidbit of information with you — but it could dramatically (and most likely negatively) affect the value of the property. If you don’t know what’s going on in the immediate vicinity of the property, it could hurt you.

Does anyone need a bird dog. Please PM if interested!

A little info on our friend LTV's for those of you that are coming up again against these right now.

The loan-to-value (LTV) ratio expresses the amount of a first mortgage lien as a percentage of the total appraised value of real property. For instance, if a borrower borrows $130,000 to purchase a house worth $150,000, the LTV ratio is $130,000/$150,000 or 87%.(LTV)

I found what I think is a good first deal the price is $42,000. ARV is $130,000. The house will need $40,000. in repairs. The home is a legal two family 3 bedroom each with an illegal basement apartment that can rent for $700. The problem is I have no money please help me find funding source. That will allow me to purchase and rehab.

I've heard they can be cash cows, but what about one that sits in a trailer park? I looked at one yesterday and the guy wants just $2500 for it. It needs new flooring and a commode... that's about all. The wall (all paneled) are okay as well as counter tops and built in closets and drawers. Yes, it's small, but if I could get it for $2500, I'm sure I could profit about $8K or $10K on it. My question is this... Since it is not sitting on land and only has a title, do you handle it the same way as far as a closing? It doesn't seem likely that you would, but how can I do this deal without having $2500 to buy it outright?

Shirley

Is there a way to find out online which bank foreclosed on a property?

Hey DGers

I want to start assigning homes asap.

I posted some ads on Craigslist saying I have houses for sale and found some people who are interested in buying houses.

Except I have no houses.

SOOOOOO

I was planning on calling Real Estate companies in my area to start the 25 to 1 process

BUT

My GF was a Realtor and says that 25 to 1 won't work because I have no Proof of Funds and can't put in offers without it.

Is she right? Wrong?

Is there a work around?

Or does 25 to 1 not work with assignments?

I'm really excited to start assigning but I have no funds and thought I could just put in offers and lock up the homes am I missing something?

Good Afternoon Everyone!

Wondering if anyone would share their approach to calling FSBOs on Craig's List, etc.?

Thanks!