need advice on a house!!!

What is the actual ARV on this property?
If its all fixed up why hasn't it sold?
What are your exit strategies?
You could assign the contract if it is assignable. Or double close using transactional funds. In both cases you need a real live buyer that can close.
Hard money usually loans at 70 % of ARV only. In most cases real HML require that you have 6 months of interest payments in the bank so, hard money is usually not a no money down strategy.
Finally, why don't you already know this?

Michael Mangham
MD Home Acquisitions LLC

knows his stuff Due diligence first!

But, after you get all your due diligence done, I will also add that the majority of HML won't do loans under $50K. Michael do you know of one who lends that low? If you do, I'm looking for one! Also, try small banks. That is becoming very promising for me on a couple of deals I am working on.

Good point! You are sharp girl, didn't even think about the price, I don't know of anyone that will loan under $50,000 either! None of my guys lend out of state. Hard money is even more expensive in California with skin in the game a standard requirement from what I have seen so far. I think small banks will be your best bet out there.

Michael Mangham
MD Home Acquisitions LLC

alright thanks guys

if you happen to be a buddy buddy with one of 'em, they may or may not wave a few requirements for you. But, Michael makes a good point though - You need to do your DD on every deal out there before you try to buy it.

Don't dive into this without the knowledge. Michael is right. If you have done you reading and studying, you would already have these answers. This isn't menat to stop you, it is meant to push you ahead so you don't make costly mistakes...Jan

and only 1.5 baths???

That alone would have me walk away or want even more of a discount

That's what I was thinking too Elix. 4 bedrooms and only 1.5 baths. You should be going into these deals with a buyers list first of all and several options for doing the deal. Not all deals are deals and not all are meant for you to buy. If you can assign it and make a small chunk why would you not do it and start on the next deal. have you read any of Dean's books? They are a great start so you don't make costly mistakes.

ive read every one of his books and i bought the think a little different course and read all of that also. and ive watched every video he has on this site and have studied alot. i was just looking for advice on what would be the best way to do it not a detailed description walking me through it. sorry if it seemed that way. but i am new and since im trying to get my first deal done i just dont want to make a stupid mistake because the first one is probably the most important one. but thanks for the comments ill try to think about it a little more before i post next time.

right now i am working on assigning it instead. ive contacted 3 people now about it and got a response so ill try to do that. oh and its 2 bath. it said 1.5 then i clicked on it and it said 2 so there must have been a mistake.

What do you mean you click on it and it said 2. If you haven't walked all threw this house and looked at everything, checked the whole property out Then STOP RIGHT THERE.

You guys have got to stop thinking you can buy and sell these properties from your computer at lunch time, you have to know all about that property before you can pawn it off on another investor. They will sure check it out and when it's not what you say it is the deal is dead and you will have to start scrambling asking every one what to do then.

it's scary to me to think someone is buying property without previewing it, or at least having someone that they really trust preview it. Just in the last week I've found 5 REO houses that had anywhere from $ 6K to 30K of hidden repairs that the agents, brokers, & appraisers missed. Those great prices turned out to be deals to run away from ...

Like James and Gary said, you or someone you thoroughly trust should look at any house you chose to buy.

And an unwritten rule I was taught was

2br/1bth acceptable

3br/1-1.5 minimum acceptable, 2br preferred

4br/2bth minimum acceptable.

and so on and so on......

Also learn how to take criticism, as no one on here is trying to hurt you, but trying to keep you from getting hurt. No one wants to hear sob stories when you knew better or just could have asked.

Good luck to you

I know when I buy one I go threw the whole place check the foundation,furnace,electric panel,roof,windows,siding. The kitchen and bathrooms I always rip out and replace so I alway add that in to my cost no matter what.

I don't know where they are coming from but I have been getting all kinds of PMs from people I never even seen posting on here. Some of the questions are insane.

First f all, thank you to all the GD'rs for your help !

I am new to buying REO's. Can anyone tell me that when you go to
do a deal on an REO if there is any kind of personal money required
thru out the deal other then proof of funds or transactional funding.

I keep seeing info saying you need cash upfront, I do have a buyers list started but no money to please the banks upfront. Any advice will be much appreciated.

Thank You

Harry

i am going to look at the house today. i already set up a walk through. i just look for the homes online first. i wouldnt try to sell someone something without knowing everything about it. and i already told the person that. and i can take criticism it just seems like i asked a stupid question and i didnt realize it.

Actually, your post made it sound like you were actually going to sell without looking at it first. Once you said the word 'clicked' thats when the 'Newbie Alert' went off

Better to ask now than suffer later

You really need to use a Property Inspection sheet/form. It covers all aspects of the house and helps you tally up repair expenses. Like Jim Kendrick said, go through the entire house,foundation,windows,doors,siding,hvac, roof,make sure everything works.

alright guys thanks for the help. i guess i just worded it wrong i should have been more detailed lol.

I haved used the same unwritten rules forever. However, I won't look at a 2 bedroom anymore as the niche is too small. The only exception is a 2 bed condo.

If you have good credit, you could get the 'down payment' from a leasee, rent it for more than what the mortgage would be, so you could make some $ for the term of the lease...

Good luck!

Just remember you should have a couple of options for these properties. And always make sure you do you due diligence before you buy, also make sure you have exit strategies in your contracts. It sounds like your a little nervous but just make sure you have all of your details in order (you should have a sheet to help you) so that when you talk to investors or retail buyers you have exactly what you are selling in front of you. Good Luck I hope it works for you

Valerie has the strategy I would pursue. I would first find the owners Magic buttons az taught in deans books. Find out if you can what he owes if it is a fsbo. I don't know? What is the status of this prospect? LISTEN to all he/she has to say and this may determine your strategy.I would offer A down payment for example purposes of 1000 and 300 per mnth ,lock up the prop on paper with contingencies and start finding a sandwich lease buyer ffor 5000 down 600 per mnth. Negotiate the sale price for what they r asking say 35000 2% on a 5 yr baloon. .to sell price of 45-50000. DEPENDING ON TRUE COMPARABLE SALES AND DEPENDING ON A RELIABLE CONTRACTOR OR FRIEND THAT IS KNOWLEDGEABLE ON THE TRUE REPAIR LIST. .........lease option is what I like to as the market is low now and it is slowly on its way up....good luck. Just my opinion but alot of great advice above.
Jay

As valerie stated and I have actually done is to line up the buyer with the 5000 or 3000 or as much as u can get and use THERE MONEY to pay the 1000 down.......I advertise this property even before it is closed on to get the end buyers $$$TO USE FOR THE DOWN PMNT. Try it. It works.. I would suggest to find. A mentor who has done this and take action with the mentors guidance.
Jay