D-HI REI Journal

craiglist guy. Heres what he had to say:

"we are gonna be upside down overall the lowest we can go is 255k, need to settle a.s.a.p. and or cash up front, we bought the house in 2007 jan. we were helping someone and the whole thing turned, when we bought ,the lawyer did not bring to our attention the side yard set back, so now were in court for the lawyers incompantancy, we need to sell it..we bought it for 250k..have put in 25k plus paying a mortgage and rehabbing payments since jan. 31 of 2007..not that i really need to tell you all this, but i will...this is one investment that got the best of us we need out"

how should I proceed? I think this market could bring 290k for this.

Went to work 8:30

scanned craigslist

scanned realtor.com

read and replied on DG.com

setup time to meet with the owner of the house in the above post.

setup a time with a realtor to see another house down the street.

left work

meet with the guy for the house from above. Very nice guy. He explained everything to me how he found the place what he owed, what his mortgage pymt is. He will 255k at the least. He owes 1200 for his mortgage. He said he would do a L/O and I could sub L it. I would have to be able to rent it for 1400....which I dont know if it will get that much....maybe.

did p90x workout

ate dinner

had conf call with some very nice REI's. It was nice to talk with them all.

posting this now...then going to bed.

Looks like you're right on track. It's good to watch fellow REI's making a go of it.

Good luck with the deal... VERY nice talking with you.

Rina

I am so glad to have talked to you tonight and I am here, as well as the rest of the group whenever you need us.

So from reading the craiglist guy's relpy above.....how would you proceed. What options would you suggest?

Thanks

Met with realtor and looked at house down the street. 3br 2 1/2 bath ranch. Asking 300k. Needs about 50k to bring back to market which is @ 380k.

Thinking about offering 300k with 50k back for repairs....also thinking of telling listing agent she can also be my (buyers) agent and asking for 2% back from her at closing. what do you think?

I think it may be a good one. Make sure your numbers work

yeah it sounds good....but will they go for it? Well we will find out, cuase I plan to offer it. First thing is to talk to lister and get her to agree to the 2% back from her...thats the first step!

Put in 2 offers this morning on the house above.

one was low ball 210. Other was full price 10k down rest seller financing at 0% for 5 years with 1k monthly payment balance due in full at end of 5 years.

I am excited about the full price offer...I thought it out like this:

10k down 10k for closing, 60k for repair. So I am in it for 80k! I hoping to sell in 6 months for around 380k. So I bank ALL of the profits. 380k less the 80k less commish/closing on sale end (29k) So I bank 271K !!!! for other investments for the remainder of the 5 year term, while only paying her 1k a month.

Or I can fix it hold it and rent it for 2k and have cash flow of 1k for 5 years!!!

thoughts/comments?

I also got my pre-APPROVAL letter done today 6-4-08.

Note: to all that does not want a ding in your credit score when getting a pre-approval letter.

Run your credit yourself for free (it doesn't affect credit score) then fax that to your mortgage person, then they can write up letter off the report you gave them.

Thats how I did it....

thats what i did too...lol

i 'm a lil' confused as to how you arrive @ $80,000 for the above property, so your saying on that property it's worth $380,000, and your getting it for $80,000(10k down, 10k closing, 60k repairs?), that doesn't make much sense to me? SULLY.

sully wrote:

i 'm a lil' confused as to how you arrive @ $80,000 for the above property, so your saying on that property it's worth $380,000, and your getting it for $80,000(10k down, 10k closing, 60k repairs?), that doesn't make much sense to me? SULLY.

ok I offered full asking 300k with 10k down and owner finance the rest over 5years at 0% with 1k per monthly payment. ARV is 380k.

I put 10k down 10k for closing costs, and 60k for repairs. Theres the 80k out of my pocket or where ever. So essentially you could say I got (will get maybe) this house for 20k with 60k in repairs, so I am in it for 80k.

HOT AS SHEET here...did much of nothing today other than the have too's..

got up played w/kids
hung out
did my p90x workout
ate dinner
waited till around 7:45....cut lawn
had a corona light
posting this....

I have been talking to a new realtor, well one that I had show me a house last year. He kinda stayed in touch with me through out the year...shows some dedication on his part. So I decided to start to ask him to look for me. So he OFFERED that he would check out the sheriff sales (foreclousers) that are in our county. They are published in the public paper. Today, Tuesday was the first listing...till the sale. He said he would look through them to see if any would be worth it to check out....

I said ok...thanks! So I think I found a new realtor (or should I say he found me), I am going to use him from now on...

Everything happens for a reason, keep moving forward and in the right direction, you won't need another j.o.b.

Elena

Hope this is "the one". It's so great when you find someone you "click" with , and who is excited to be a part of YOUR plan. Sometimes God just blesses us at the right time. I know that's what happened for me.

Good luck, D. Things are looking up!

Rina

So I got the forclosure list from the new realtor. I am looking though it now. All the properies had a bid price that is at FMV, so I dont know how profitable this will be. Going to ask the realtor to go over some details and action steps with me when we can get time.

Let me know what happens there D.

(on that day)
D setup a time to meet with realtor to go over how he wants his realtionship to become with new realtor. Meeting is at 12:30 Friday.

hahaha...sporting my narration skills!

Very third-person. lol
Good luck tomorrow.

When all was said and done, D and the new realtor really hit it off. THIS was the one he had been searching for. The REI future is looking brighter.

Rina

nice. Glad to make you smile.

I meet with the new realtor. He was ok with what I wanted to do. He has done investing of his own in the past. He said with the pre-4's when someone has no equity in the house. He would contact the owner get a sale agreement signed between owner and me. Then He would call the bank and do a short sale. He said he would do all the leg work.

I asked him do you still request 3% commish for this type of sale...he said yes, but the bank is who pays him...NOT ME. I said ...oh cool!

I just sign the offer and pay for it at closing! That will work....as long as he can negociate the bank down to a price that would be a deal. That is where the challenge lies....

Most all pre-4's/4's these days are pople who are close to or are upside down!!!

Usually, but they can still be good deals if the bank will take a low offer, just make sure your Realtor's offers are low enough to pay you both a good fee. It you do, you may have a perfect partnership here.... Let me know!

"When all was said and done, D and the new realtor really hit it off. THIS was the one he had been searching for. The REI future is looking brighter."

I'll just keep repeating it until it's true! lol
Just kidding.

Congratulations, D.
Keep us informed.

Rina

been watching this one house for about 9 months now. i sent the owner a few letters with no reponse. The other day a sign went up in the yard. I stopped talked to the person that lived there. He was a renter, said owner was selling cuase he was moving back to Texas. Owners live in TN.

So I called the listing agent and went to see it. The owners asked NOt to show it till Monday 6-23, but said ok for me to see it. Checked it out...needs about 30k. ARV is about 290-300. Sellers asking 279k (yeah right!)

Put in an offer representing myself of 209k. New castle count has a newer contract now....but I like the older one, so I use that one. The listing agent calls me and says I got your offer but it is on the older contract, I said "yeah, so it's leagal"! She the seller doesn't want to use the old one.....I said "like they know what is waht" She says "of coarse they do" I say "yeah because you told them about it, home owners don't know about what contrat is what!" They she tells me well.. Patterson - Schwartz requires all offers to be on the newer contract..... I said that is dumb, I can write my offer on a napkin if I want, and it will be a leagl binding contract!!!

I am SOOOOOO sick of realtors. I wish ALL sellers would sell their houses themselfs, it would make uying houses so much easier!

So anyway the sellers REJECTED my offer......(yeah you mean the listing agent talked them into rejecting it!!!) RE Agents just make things more complicated than it needs to be!

Thanks...
tired!

I dont see the deal here. 255K is 88% of FMV even if it really will go for 290. I wouldnt take that deal in a good market, Im not even considering it now.

If they need out, then they need to bring cash to the table or go short sale. Id be looking to pick it up for 200 or less. (And I would want to be VERY sure about that 290 figure).

You are right in this case.. pretty much across the board.

but it's probably a case of picking your battles. I would have just re-submitted on the new form. But DO pick your battles on price. Maybe lower the price since you have to use the new form if you want.

ok thougt through this one...and given all the data I collected I submitted a new offer...(oh and I used the new contract..)

Heres the info...

They have an equity loan on said prop for $51,500. They own about $37k. they live out of state. House is not in bad shape...could fetch 290-300 ARV. They are asking 279k.

Husban is in military and is retiring this summer. With the current renter that they HAD in there they were cash flowing about $600 a month. renter is leaving the state, therefore seller is selling. Doesn't want to bother renting anymore.

Heres my offer (Owner Finance):

as is condition, no contigentcies
247k
2k earnest
35k down (earnest and down pymt total their payoff)
seller carring $210k for 5 years at $800 a month (cash flowing $800)
balance of $162k to paid in full at end of 5 years(regardless if I sell)

I'll let ya know how it plays out.

Just my .02.

I LOVE this part:

"2k earnest
35k down (earnest and down pymt total their payoff)"

Gets rid of the HELOC, I think? Did they owe 37K? And 51,500 was the original amount? Is that right?

"seller carring $210k for 5 years at $800 a month (cash flowing $800)"

I would have offered less. Maybe 200K. And asked for 10 years or at least 7. 5 is NOT a long time, especially in this climate.