WOW!!! 50 REO OFFERS IN LESS THAN ONE WEEK!!!!!! I THINK I HAVE A "FEVER" OR SOMETHING!!!!

I just had one sent to me (to see the format)

I'm making advances guys. Thanks for keeping me motivated and confident.

THIS WILL HAPPEN. (A MILLION+)

You have to get offers out every week to make this work.It took me a long time to do this because I kept finding myself doing other things like reading and reading which I dont regret but you get to a point that a payday won't come until you have 10-15 offers going out every week.
Just My opinion

Just want to say thanyou to everyone about the education on POF. I went to my first open house yesterday, actually two. I was nervous, but did it.
Kat

Hi Guys,

Today is actually my first day on the site and have found some thought provoking information from everyone. I am a beginner in real estate and have a lot of questions. But I am enthusiastic and very excited about this industry. I can't wait until I get started making deals like you guys and even more, learning the reo language. I know in this business it is a lot of work and dedication. I am ready for all of it. I know I will have some questions, I hope you're willing to offer some of your knowledge on real estate. I look forward to this club's motivation and confidence!

Selina

This is what this site is for!! Ask all the questions you possibly want! There are a lot of knowledgeable people on here and they kindly answer your questions. Don't be afraid to ask anything!! But don't ask too much b/c if you spend all your time on here asking questions that means you are not out there looking at houses and making offers which is costing you money!

Goodluck!
Shaun

Welcome Selina - As a fellow newbie, I find myself with the confidence of a seasoned vet soaking up the knowledge the DG Family has to offer. They are absolutely GREAT!!... Let's do it!!!

Thanks for the advice. I'm at a stage right now where I am making contacts... Even found an investor (maybe even a HML). So now, I'm looking for properties that I think will fit her portfolio.

Just had a thought... No way I settle all my dreams on one investor. BUT I do want to come through for you to establish a working relationship. (Nobody said it was going to be easy )

I'll keep you guys posted.

I like your remark, that you get the properties that are meant to be yours, I'm just starting out and will keep that in mind and not get stressed out if it takes a lot of offers

These offer that you made on the REOs:

How did YOU determine your max offer price?
How did you show buyer in P&S Contract? LLC and/or assigns, Land Trust, your name, etc?
How did you show financing method?
What did you do about earnest money?
What addendum exit clauses did you add to it?

Please share, considering you got one deal already.

Thanks,

mati

I allowed my RE agent to handle ALL these matters.... Shalom!!

It totally works...I use it all the time:)

O.K. let me start in order of your questions

I determine my max offer by using dean's calculators and these expenses less what the Gari is (gross annual rental income). You have to decide what you want to make per month so you are happy. Is it 200, 300, 500, 1K?

1. I find if the property c/f's by taking piti (principle interest taxes insurance)and multipy by 12 months. Less the expenses for the year such as property management, vacancy factor (multi units), maintainance (multi units) and any repairs that need to be done (my prop manager sees the place and gives me a rough estimate so I can get my numbers). Also, do you have any other expenses? Such as garbage, water/sewer, electric or gas on multis (you may or may not). Get your numbers and plug in.

2. Once you have all that you can go to the county page and see the assessed value or have an appraiser on hand that can give you a quick "guestimate" on what the FMV is.

3.I can write the offer at 40% or 50% below the FMV and then see what my top amount would be with all my expenses less the GARI to determine my walk away amount. Don't get emotional, have your numbers and stick to them. If the first doesn't work go on to the next.

Question 2...I wrote the first 4 in my name and re-fi in LLC. The next one I am doing commercial and will write into LLC rather than my name. I took advantage of the 30 year fixed that you can only do in your name. Than afterwards you can do re-fi's into LLC. Now that those are used up I have to do commercials which are only 5 year loans ammortized at 15, 20, 25 years. There is a plus to commercial though and that's NO seasoning period. Hope that helps.

Question 3...I have a HELOC out on my house. I use the equity to write cash offers. If they ask for Proof of funds I say in offer that I will provide w/i 24 hours of acceptance. Do to it being a HELOC you can't use a templet since it's cash so it prevents me from bugging my banker a million times. I only get it once an offer is accepted.

Question 4...this is an easy one. I write a check for $500 or 1K for the property. Put address in memo and date. Provide photo copy to your realtor to submit with offer and say the check will come w/i 24 hours of accepted offer. This way you only have to shread the check if it's a no go and not be out any money UNLESS it's accepted. Then they put it towards your purchase price anyhow. I live out of state so I just overnight when I have an acceptance.

Question: I subject to "buyers satisfactory inspection"...this allows me, my prop management or who ever I choose to see it and leaves it open for me to dump for pretty much anything. If I want to spend money for an inspection I can do a whole house with this or just say do to me seeing it I do not want it. BTW the bank hates this wording and I seem to have to break it down afterwards in the addendum.

Hope this helps. I am waiting on the bank for closing on my 3 prop (6th unit) for next week sometime. All is good and what ever route you choose that works best for you just stick to it...focus...and don't listen to the nay sayers...Good luck!

Sincerely,
Angie

Angie -

That's awesome. Thanks for taking the time to put all that down!

Can you explain a little more about Question #2 - the re-fi's and no seasoning with commercial? The first four properties you bought as individuals (but not owner-occupied?), then re-fi'd them into your LLC name, still having 30-year fixed mortgages, right?

Then, the subsequent properties you're buying using commercial loan? DOes that mean they have to be larger, commercial properties? And with no seasoning, you can refi these as soon after closing as you want?

Thanks for helping me to better understand the financing!

Tracey

Hello everyone I just joined DG site yesterday so I am very new here..
So.. I was also looking for REO's and already made a cash offer, but my realtor said the bank wants to know if I have enough cash on my account. Well, the problem is I don't want to deposit any money to my account b/c some institution might start digging under me. I am currently unemployed. What options do I have? Any suggestions? Thank you.
Irena

Can you be a bit more specific. What EXACTLY do you plan on doing with the "REO" if your offer is accepted?

Well, for the beginning I would like to fix it up, flip over and go to the next one..

As for ques 2...yup you got it!

As for the commercial nope it can still be a single family prop, duplex, triplex, fourplex or larger:) The re-fi's can be done immediately. Remember though that the interest rate and the ammorization is different so ask your morgage person or banker what it is so you can factor your numbers correctly! Good luck! Ang

May I ask you what is "do a Sub2" ?

Thanks,

Hey Everyone - In one of these threads, I asked Jason (I think!) to list the banks' REO websites and I can't seem to find it any more.

I know this is a bit of a nuisance, but if anyone runs across that post, can you point me in the right direction. I know that a lot of us visit the same threads, so I was wondering if you guys can help me out.

Thanks.

April - I think what you're saying is that you have the cash, you just don't want it sitting in your bank in case someone comes looking to take it, right? If that's the case, I would look into setting up an LLC and/or an S Corporation and put the money in the corp bank account. That should be protected from any personal creditors you have. Of course, get an atty to make sure of everything for you, but I think that's how it works.

And, if that's not what you meant, could you clarify again? THANKS!

Tracey

Angie -

Thank you! I didn't know you could do commercial loans on SFR or anything less than 5-plex. That's awesome news! I'll talk to my lender and see what the details are on amortization and interest.

Thanks!

Tracey

No problem, good luck!!! Angie

www.coastal-funding.com

...Am I suppose to make all offers in writing?

with or without p&s agreement? I plan to use the land trust angle; so do i use that contract?

somebody give me the answers to these questions (metaphorically pulling the trigger on the starter pistol - signaling..) GO!!

What do you make of an REO agent specifying the buyer must use seller's title company?

This is www.coastal-funding.com

We are putting an addendum on all offers that buyer chooses Title/Escrow company, but our realtor says that she has never seen a bank accept that. They always want to use their own Title. We want the option to do a double closing, so we want to have the right to choose someone like Coastal Funding.

We're putting it on all offers, so we'll see!!!

Hey Dom and Kim, I am not sure how things work in Southern Cali.... But, in Washington/Oregon U cannot ALWAYS choose the closing title company. In some instances, the lender will state in the property description they will ONLY close with SELLER's title company. Therefore, if U want to make an offer U must know out the gate U will not be closing the deal at the title company of your choice.

I don't actually care, which company we close the deal as long as the escrow agent knows how to perform "back-to-back" closings!!! If I were U, I would not put in writing on my addendum "...buyer choose Title/Escrow company..." In the end, U might see a lot of "rejections" on your potential deals.... Shalom!!!!

Hi Anita,

My name is David and I have just ordered a couple of books from Dean. Do I have to have a real estate agent before I buy a house?
Thank you,

David

Welcome to Deans site.
To help you out, Start by reading alot on this site before posting question's because you will just waste your time and effort. If your trying to get Anita's help try to PM her. I guarentee every answer you have has already been answered a number of times. Also, when someone posts a title to a thread, we're supose to stick to the topic to help this site from extra wasted reading. I recommend listening to all the past conference calls and Deans weekly blogs.

No you dont need a Real Estate agent to buy a house.

Sorry, it's been a while since I've checked this thread. My question to you is in reference to what you said about "I don't really care which company we close the deal with as long as the escrow agent knows how to perform back-to-back closings!!" My understanding is that most will NOT do them.

That's why my coach at PMI recommended that we put the addendum on our offers in order to keep the option of double closing available. He did not seem to think that it would cause our offers to be rejected, as you suggested. In fact, he said "All things are negotiable. All they can say is No, we want our title/escrow company." And then we can decide if we want to lose the addendum or pass on the deal.

Let me be clear, I'm not saying "You are wrong." I'm very open to hearing ALL suggestions and opinions. I wanted to respond to you with some other information that we are getting and see what your take is on it. Thank you for your feedback!!