WHEW !! First House Closed.....it's DONE.

Yes, closing feels SO good. Kind of like the final pen stroke to a great book. Get it on the shelf!

Very impressed with all you've accomplished,

Rina

I havent been posting much lately - but have been popping on and off following everyones accomplishments. I knew you were going to be a success. Enjoy your closing - I will never forget my first one - all emotions rolled up into one big adventure! Best of luck with the house and your future endeavors!
Laura

Great job Sam, let us know what the experience was like.

Good for you Sam... It sure feels good huh! I just did another closing on wednesday (3/11/09) and it feels so good to have closed on another property. The best feeling of all was the bank financed 100% plus 15k for repairs and that's not all. The bank went as far as financing closing costs as well. I did not even put out ONE PENNY out of pocket. Cool huh! I've read so much about 100% financing and Zero Money Down, and now i can finally say that i've done it and it's a great feeling. Once again, congratulation Sam and many more closings in the near future.

Lloyd

nice job...That is so great...

And way to go! You're doing amazing things!
Keep us posted on your future deals!!!

Dawn

Can you share some more details of your deal as to how you accomplished this in this market? Did you do it as owner occupied or as an investor - do tell!

Great job sam let us know if you have learn anything new at the closing,

I CAN NOT WAIT TO have one like you, knowing that I'M NEW IN THIS BUT I HAVE HOPE THAT ONE DAY I WILL BE TELLING MY STORY TOO. I KEEP FEEDING MYSELF WITH DEAN'S GREAT EXPERIENCES AND KNOWLEDGE

Congrats Sam!!!
keep the momentum going.
I am really glad to see you succeed.

Hey Laura... I posted a comments about this particular property on the headline "Zero Down (Impossible/Possible)" Anyway, it was an REO, and i've had my eyes on this partiular property before it went to foreclosure. I met with the owner back seven months ago in attempted to get the property before it went to foreclosure. However, she was greedy and she refused my offer and eventually lost the property back to the bank. She owes $50k on the property (pre-foreclousre), but i offered $65k given the fact that i would have to cough up another 15K for repairs. Thanks goodness i've waited, lol. I didn't want to take advantage of her, but i wanted a win/win situation.

The property went through foreclosure and the bank (Marions St Bank) took it back (REO). Once i found out about it, i met with my attorney and made an offer on the property. I offered 20K and they countered 25k of which i delightedly accepted it.

I went to three banks and told them what i wanted to do with the property and have them compete for my business. I want to fix it and turn into rental since i have long list of renters in placed. The bank (Marion St Bank) owed the property had done their own appraisal and it was appraised at $105,000.00 ARV (seven months ago).

I wanted three banks to compete for my business of which one bank provide good interest rate, but i didn't like the terms (Community Trust Bank). The other bank (FNB) gave me a better interest rate and much better terms after much negotiation. I told them where the property was and i invited the VP of the bank and the loan officer to go take a look at of which they did. They conducted their own appraised and this time it was appraised at $110,000.00 (Jan 2009)

MSB accepted my offered of 25k and they had to settle some fees with IRS on some old liens with the previous owner. No worries, the title is clean now, and i own the property free and clear, thanks to my attorney.

FNB financed it for me 100%, ($25k) plus $15,000 for repairs, and not only that, i asked them to finance closing costs ($1,200.00) and they were gladly happy to do it which the total of the loan comes to $41,200.00. Yes, that's 100% financing and no penny out of pocket. Wow, that's cool huh!!

Given those figures, i would have bought the property at 60% ARV. The bank knows there's almost $70,000 equity of this property and that will secure their loan. I hope this help Laura!

Lloyd

I appreciate the comments.....I have another due to close and it's still a nail biter. Lender needs an extension and there is no guarantee on that. I need to get my academy money back so I guess I'll have to buy 3 more....

You're leaving us hanging. How'd it go?? Or are you just like, one down, 4 to go? lol
Congratulations.

Rina

CONGRATULATIONS!
You have worked so hard and posted and inspired us all every step of the way.
You deserve this success!

Great Job Man!

Good Luck with everything else you have in the pipeline ... keep us posted!

Angela

The funds were wired in to Escrow today. Everything is ready, but the seller had to be out of town....thus we have an extension until Tues. My HML called me and told me that I might need some additional funds at closing for taxes and a small lien. I was like...."what?" I was upset for a few minutes and I thought...."look at the contract" AH....HA !!! The contract spells out that the SELLER pays all taxes and clears encumberances prior to close. The Lien is an encumberance. I called back the HML and brought this up, and he said Oh....good for you.... Now I get some cash BACK at close. That's MUCH BETTER.

MORE ON TUES.

PS.....second home is now OUT of limbo.....BANK has allowed additonal time for the lender to close....scheduled for the 30th.

Sam - amazing - I'm really proud and inspired by you!
Lloyd - thank you for sharing the details of your 100% financing in the above post. Incredible!
I love this stuff!!!!!

Congrats to you Sam! This is a real inspiration for me. I have been looking at a few properties (REOs) and your post gave me what I needed to get going. Thank you for posting the transaction every step of the way to encourage me to go out and make things happen. Great success to you both and everyone on the site for being an inspiration.

I do have one question for Lloyd? How did you arrive at your $20K offer for the property? This sounds like the kind of deals I'm looking for.

I live in Oregon and hope to start making some deals soon!!! Inspiring, I just need to get out there and start making some offers!!!

The owner owns the bank 50K, but she no longer owns the property. The property became an REO which means that the property was not sold at sheriff sale, and thus became a Real Estate Own (REO). The bank are in the business of loaning $$, they'r not in business of holding on to properties. They want to get rid of the properties ASP with a fair and reasonable price.

Knowing how much the owner owns to the bank, which was 50k, i made an offer based on that figures. I've also taken to an account that i would have to do some repairs once i get it, and possibly back taxes, liens, etc, etc. I made a low offer.

I've had my attorney do all the leg work for me such as title search, back taxes, lien, etc, etc. and luckly that there was lien on the property which delayed the process, but it was taken care of, thanks to my attorney. That's why it's really important that you have an attorney as a part of your team.

Having all the informations and due dilligence, provided me with what i wanted to pay for the property. I offer 20k knowing that they could refuse or counter my offer. My goal is to buy properties 40%-50% ARV or FMV. So, when they countered at 25k, i got what i wanted and money in the bank. Well, not literally $$ in the bank, but with $70,000 equity until i sell it. I hope this helps answer your qeston Barry!

Lloyd

Excellent Job! Keep making the offers. Keep us updated.

Signed papers today.......seller will sign tomorrow.......there is a three day right of recission on the Lien that I have placed on my primary home in lieu of a down.....so the house will actually close on MONDAY.

At close....I will receive almost $2800 which gives me BACK the $2000 I put down for the application with the lender. That leaves me AHEAD $800

I actually am walking away with CASH at CLOSE.

Second home is due to close on the 30th.

Your offer was based on the previous owners outstanding debt amount. I guess at that point they were willing to take what they could get? This helps a lot Lloyd. I'm looking at an REO property this week that I want to make an offer on. I have to get a contractor to give me estimates of repair costs. I also have an appointment to interview a property manager to see what rents are like in the area, what their fees are,how they screen possible tenants, etc. The property is in decent condition and shouldn't cost very much to fix up and rent out. I want to create as much equity as possible for deals down the road. This is definitely very helpful to me Lloyd. I'll keep you posted on how it works out. Thanks greatly for your help.

Congrats to you! Keep hittin' 'em out of the park. I'll be joining you soon hopefully:) Keep me in your prayers.

You welcome Barry! I'm just glad that i can be an assistant to you. Keep us posted with your deal and good luck!

Lloyd

Try this site to compare rents in your area:

http://www.rentometer.com/
Angela

Very exciting! Thank you so much for sharing and keeping us up-to-date.

Rina

This is a great tool to help gauge what my cash flow would be. If I come across any tools that might be useful, I'll definitely let everyone know. Thank you again Ms Angela.

WOW Lloyd that is an awesome deal!!

I am bidding on an REO today. I'm a little nervous as this is my first offer.

So even though the bank owns the property there could still be a lien from the previous owner?

I do have an attorney and I'll call him to find out more.

Should I be concerned about it before making an offer?

Also, how detailed was your offer? Do I need to include any special in the offer or did you just make a verbal offer?

The REO I'm bidding on is one of my realtor's properties. Does the realtor generally make the offer and you supply POF?

Any help is really appreciated!

I finally put in my first offer. Hopefully they take it. I had the repair estimate done, found a property manager I like and a mortgage broker I can work with. I think I logged about 4 hours at the Court house going through the chain of title and met some very helpful people there as well. So far, I feel silly for waiting this long before taking any action. Once I made up my mind to do it, everything started to come together. Thank you all for your wealth of knowledge and great ideas.

This particular thread kinda sorta belongs to Sam aka northwest amd the members on this site are following his investing 'adventures'

Best advice of the day: Start your own forum topic, or your own online journal. (Go to almost the top of the left hand panel of the page and click on 'Real Estate Forums', once you get there, start a new forum.) Then we can follow your investing adventures, without getting sidetracked!
Do it in the morning, anything posted too late at night gets lost because no one sees it.
Having said that, I will pray for your first offer like my life depends on it!!!

Angela

Thanks for letting me know Ms. Angela. Thanks for your prayers also.