OfflineI finally have my first deal in hand and i'm ready to jump into the fire!!! I have just had my first offer accepted on an REO in New Jersey. It is great to know that i have come 50% of the way, the remaining journey will be assigning the deal.
After starting the DG book end of February and temporarily getting side tracked from my goals with investors looking to involve me in commercial properties buying and selling, bulk reos selling and such (all of which was a good learning experience i must say), i finally put a grip on what i was doing and fucused on one thing ... finding REO's in New Jersey and bidding on them really low.
I have found that reading this site and other alike, it is very easy to get excited and want to do a bit of every strategy out there - foreclosure bidding, short sale opportunity seeking, FSBO negotiating ... but it is just too much and too many different approaches and i find that staying with one or two strategies works best to stay on track and geared up.
So, after readying all these posts on "you can assign", "you can't assign" and everything in between, i decided that i would put out 30 offers with my agent and assign them. We just sent the offers last week and since then I have had some counter offers, which I countered back, and some have declined me, but FINALLY I got my first acceptance.
I have found an REO prop which is a 3/1, 1182 sq ft ranch. I have not seen the place yet, so i can't tell you what it is like inside ... however, i don't really care what it looks like, because i know i can find investors who are complete rehabbers and at the price they would get this place for, it would be a great investment. The original price was 169,900, then the bank dropped the list price to 130,000. I submitted my first offer for 98,618. Within a day, they told me they had to see highest and best, as they had another offer in consideration. I countered 109,575. Simultaneously, their list price dropped to 123,600.
The selling agent said the counter was good and the bank will accept it. My plan now is to market the heck out of this prop, get it assigned for 10,500 and move on!!! The prop is a good investment and even better rental home. Its FMV is 219,150, if offered 50% of FMV, leaving the end buyer with a solid 99,075 equity before repairs and a 45% under FMV.
I am going to be posting my new website in the next couple of days and working really hard at my marketing of this home.
I hope to have a final success story to give to everyone and more after that too. There are just so many REO's out there, i MUST succeed!
Matilda
Mid Atlantic Property Managment, LLC
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Congratulations on your deal. It sounds very exciting. Please keep us updated as to the progress you make and what you may learn during the process. Believe an Achieve!
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Hi Matilda...We too have put in our first offer however it is a REO through a Realtor. When we signed the contract they would not put and/or assign. Now we were ready to fight it but our strategy is to keep it as a rental until the market bounces back. How did you get your agent to do that for you...better yet...how did you get your agent? I am having difficulty getting anyone to take me seriously. Anyway...CONGRATS!!!! Nothing can stop you now...YOU GO GIRL!!
If You DON'T Ask, The Answer is ALWAYS NO!!!!!!
DArchino,
Thanks for your support. The home is still in attorney review as the bank is playing hard ball. It has been a week now that we have had a verbal on the offer being submitted, however, when the bank sent me back the contract with their addendum and terms/conditions attached to it, i found that they had removed my "assignment" and "inspection" addendum that we attached to my original hand written agreement?#@! So i had my agent call the selling agent to find out why. She said that this is standard procedure that the bank follows and that any addendums or provisions that i want to have in the contract can be added during the attorney review period. They also wanted me to give them a $1000 cashiers check and my certificate of formation for my LLC, as well as sign this 15 page contract that they sent me. I didn't know where to go with this, so i have an attorney helping me with this deal. She was also not comfortable going into the deal as i was going to be signing provisions like, "5 day inspection period", "not assignable unless written consent from seller", etc. After a battle with the bank where they basically play it "it's their way or the high way", i ended up signing contract with my LLC, and or assigns, my name, member on every page! I just got done faxing them the cashiers check as they would not accept a personal check and this will bring me into attorney review. The last week i have been actively posting this prop on CL and i will be running in ad in the local news paper this weekend. I have designed my own site and posted the prop on it and this is the link that i send to the few investors i have on my list.
As for finding a realtor, mine is $$$ hungry with the slow business and is willing to try anything. I found her through a paralegal close friend of mine who referred her to me.
check out the property ...
http://www.mid-atlanticproperty.com/P2009513.html
Live life today, because you never know what tomorrow can bring!
i have come across a buyer that wants to buy the home from me, but he doesn't have good enough credit to qualify for a loan. Do i buy the home myself and then owner finance it to him? I really am torn with what do to. The man told me that him and his wife have income off the books, only reporting a small amount of what they make. They currently rent for 2000 p/m and are looking for their own property. This home is a rehab home and he is able and willing to get a crew in to do the rehab to get a c/o. I am willing to purchase the home and put him in it for a lease term or owner finance it to him, however i want him to do the rehab required and i want to take some kind of money from him (non refundable) to ensure that he will go through with the deal or loose the cash. Any suggestions?
Mati
Live life today, because you never know what tomorrow can bring!
I have a short sale deal that i think i am going to get this week. The LP was 479,000, i offered 371,000 and the FMV is 550,000. Because of the seasoning issues with the simultaneous closing requiring a 90 day seasoning, i am thinking of using a HML to purchase home. My plan is to market the home to retail buyers before i close, once i get a buyer interest, get them qualified through my mortgage lender contact, and then if they qualify, write up a contract with them that would stipulate that i am going to request a 15,000 deposit upfront for them to have first dibs on the house and that after closing, i will allow them to lease the home from me for 3 months (so i can fulfill the 90 seasoning issue), and at the end of the 90 day term, i will sell the home to them and apply the 15,000 deposit to them, however their 3 month rental money is not refundable. Obviously i would be selling the home to them at a larger profit margin, say 450,000. What do you all think?
Mati
Live life today, because you never know what tomorrow can bring!
Congratulations!!! Way to go!
Yuri
-- TIME IS A TERRIBLE THING TO WASTE, SO STOP WASTING IT --
it looks like the short sale property described in this thred is going to come through for me. At this point, i don't care if they don't allow me to assign the deal (one of the clauses it have in my contract), because i am looking to do a simultaneous close to make about 60K or more on this deal. However, due to the "seasoning" issues that have come to light and we investors can not flip a deal unless we have a 90 day seasoning on the home, i am looking to purchase the home outright using a HML and then lease option it to an end buyer with an option to buy the home after 90 days. I would ask them for about 15,000 option money upfront (non refundable) to move into the home right away, i would charge them a monthly rent for the next three homes and after this period, they would be able to purchase the home from me directly and have the 15,000 applied to purchase price, or i would just discount this money from final purchase price. What do you all think?
Can you suggest HML that you HAVE USED?
Mati
Live life today, because you never know what tomorrow can bring!