OfflineHello everyone,
This is my first time participating. I have been dragging my feet through the down turn thinking this is not a good time to get involved in investing in real estate but the latest infomercial changed my mind. Re:REO's, there was a testimony given by a couple who made a ridiculous offer on a bank owned property and got accepted (huh).I immediately got on our local news papers website where I typed in REO's which have the APN#'s and addresses listed, did some drive by's, visited the local tax assessors office and began the challenging task of finding out who is in charge of REO's at each lending institution. (I am on day 2, 5 properties in my sites)
Question: Does anyone have any contact info.for Wells Fargo's REO dept. in N.Ca.Sonoma Co.?
If so, you may be looking for a partner. I am highly motivated, a self started and extremely creative.
Thanks for the info, I'm just starting but putting two bids together for the listing RE's. Will info on what happens. I know all journeys begin with one step. You guys are great help!!! Keep it up.
Al4Money formally RAK
Al4Money
Robert, what are you using for Proof of Funds? As you know a lender will not except an actual offer on a REO without POF and Earnest money.
What is your strategy? Do you have the money to close if offers are accepted. As you know you can't assign a REO. If you plan of flipping these REOs by doing a double close you will need transactional funds and the POF letter that goes with the offer.
If that's the case go to my website and learn how to obtain this tool that is an absolute must if you plan on wholesale flipping REOs
http://www.mdtfcam.com
Michael Mangham
MD Home Acquisitions LLC
Knowledge is power, but execution trumps knowledge. Tony Robbins
http://www.mdhomeacquisitions.com Seller site
http://www.mdhomeacquisitionsbargainhouses.com Buyer site
http://www.mdhomeacquisitionshousehunter.com Bird Dog Site
http://www.mdlodeals.com Tenant/Buyer site
I was looking at a property that is currently owned by Fannie Mae. However, it was recently pulled off the market due to the current situation with foreclosure paperwork. Talking with the listing agent on the property, he feels that the property will be back on the market in about 30 days.
The listing price is 300K which is about 50K under market for this area. The property itself needs very little work, some interior painting and exterior clean up. Was wondering what kind of offer I should make on this when it comes back on.
Say you determine that active listings (your competition) and sold comps (in this market, last 90 days) in the area support an ARV of $350,000.
Your offer somewhat depends on your exit strategy. Lets say you are going to wholesale it of fix/flip it yourself.
This is what I would offer. $350,000 At 65% = $227,500 minus remodel/ update costs. we will say $20,000. Offer $207,500
You mention a $50,000 spread on this one. In reality after commissions and closing costs that is about $15,000.
Wholesale it to your buyer at 70% ARV = $245,000 Minus repairs $20,000 = $220,000 a $12,500 profit.
This is what your investor/flipper is looking at ( you can offer 70% ARV if you do the flip and don't wholesale it) when he buys.
Purchase price $220,000
Remodel $20,000
Commissions $21,000
Closing costs $21,000
Holding and cost overruns $10,000
Total costs $282,000
Quick sale price of $339,500
Net profit $57,500 profit
Remember if this is a nice house that an owner can purchase you will be competing with owner occupants. Move on to the next deal!! I don't know how long it was on the market before it was pulled but you have to ask yourself why it did not sell when ACTUALLY $50,000 under market? Answer is usually it ain't!
Do you have the proof of funds to offer on A REO?
If not go here and get them: http://www.mdtfcam.com
Good luck!!
Michael Mangham
MD Home Acquisitions LLC
http://www.mdhomeacquisitions.com Home seller site
Knowledge is power, but execution trumps knowledge. Tony Robbins
http://www.mdhomeacquisitions.com Seller site
http://www.mdhomeacquisitionsbargainhouses.com Buyer site
http://www.mdhomeacquisitionshousehunter.com Bird Dog Site
http://www.mdlodeals.com Tenant/Buyer site
Hello all, I just completed the 3-day workshop and am ready to go with no fear.
I am also going to be looking in the N.cal. area of Sonoma County. So lynyeag
I would very much like to talk to you about doing some deals together and maybe pooling are resourses to get more deals done? So far what i've seen, You all are very helpful that's so great!