The Journal of the Daily Adventures of Indiana-Joe

I see that Stacey found a great deal, I think it was a 1/2 off sale??? The house was 1/2 there!! LOL

I have found some REO's that I am interested in. Being a newbie & petrified I have questions..... Have been looking at homes on Homepath.com
1. They are all listed with realtors - no direct contact with the banks
2. How can I put in an offer without a down payment - can I tell the broker to put thru a contract for the full or negotiated amount being financed. I want to buy it as a rental property

How do I approach this. I have tried looking for banks with REO's being done thru the bank only but can't find any. I also want to look for an REO as a primary residence

Please help & guide me. I only have a few months before my lease is up where I now live and want something for myself along with some income. I believe I can do several of these either to sell or keep once someone explains how I should handle it.
Thank you

Gamma, typically you don't need a deposit to make an offer, just some earnest money to make it legal. You can use $100, but sometimes if there are multiple offers you may want to consider a higher amount.

Duh, I think I misworded my question - yes I know I don't need to put more than $100 down to make the offer (that I have available) - my problem seems to be that once that is done and if lucky & offer is accepted - the RE agent is expecting me to put down 3-10% or more as down payment if deal is accepted (this is their words to me) I don't want to do that - I want the bank to fund the entire deal & let me get a renter in there within 30-60 maybe 90 days (if it needs work) b/4 I begin payment on the mortgage. The realtors I have spoken with 4-5 have said that I need the down payment & the funds available to close or they can't help me & banks won't do deals like that.

What is up with these people? Am I approaching them with the wrong wordings?
Thanks

Try the small banks, Joe here has been able to get 100% financing on deals. You just need to find the right bank. Don't listen to the Realtor.

...Thanks for stopping by my journal. I use a real estate agent but I have used brokers in the past as well. I found there are some agents I prefer over others. I would recommend trying to find the agent or broker that works best for you. Ask other investors for referrals and contact several in your area. Good luck with real estate investing. Believe and Achieve! - Joe

...Yes this home was too good to be true until we got there and saw half the home laying on the other half! We could not believe it but like the old saying of a picture is worth 1,000 words! Have a great night. Believe and Achieve! - Joe

...Thanks for stopping by my journal. Yes, all homes on homepath.com are through Fannie Mae and aare REO foreclosures. Homepath does offer financing you can learn more at:

http://www.fanniemae.com/homepath/financing/index.jhtml

If you are looking for a home for yourself to live in as an owner occupant you can check-out FHA programs at:

http://www.fha.com/

If you are looking for a home for yourself to live in as an owner occupant you cna also check-out HUD properties at:

http://portal.hud.gov/portal/page/portal/HUD/topics/hud_homes

Owner occupants can bid on HUD homes before investors.

Lastly if you want to find local REOs at local banks take a look at my recap at Indiana Joe's Guidemap to finding REO Gems...let the adventure begin!:

http://www.deangraziosi.com/real-estate-forums/buying-foreclosures-reos-...

I hope this helps. Good luck with real estate investing. Believe and Achieve! - Joe

sounds like prices in Indiana are much much cheaper than out here in California....I notice a lot of the houses you find are in the 40 to 80k range.....where i live(about 25 miles northeast of san francisco you couldnt even buy a garden shed for that kind of money...most of the houses are in the 350 to 500k mark....even condos are 200k and up....i keep scouting the area but it seems that most of the west coast from san diego up to seattle is simply to pricey....i have find some more reasonble priced properties in oregon online but there in remote areas where no one really wants to live or have high unemployment rates for the particular county where there located...i even researched the area up around vancouver,canada and the prices there were just ridiculous for what you get...the wages there seemed really low in comparison to the cost of living aswell so ill pass on that area.....my question for you joe is do you buy properties sometimes further afield...say for example maybe another state like ohio,tennessee,missouri etc or do you mainly focus around the indiana area and if you do buy properties out of state how do you monitor them ...

...Thanks for visiting my journal. Yes, California can be a very tough market. However, there are some opportunities under $200k but it depends on the types of properties you may want. The key may be determining the best area for you to invest based on the strategies you want to use. I am fortunate that in my area, I am near many properties that can range from under $5,000 to over $1 million and everywhere in between. In your own target area try to local FSBOs or contact local small banks on their REOs and see if there could be any opportunities there.

I have had some opportunities out of my area. The key is setting up a system and finding a good property management company. This property management company can be your eyes and ears for properties that are farther away. However, you still have to spend a little time and manage the property management company to ensure they are keeping your place rented and collecting the rent timely. Good luck with real estate investing. Believe and Achieve! - Joe

thanks for replying back joe...yeah ill try another avenue and concentrate more on the fsbo and reos...im focusing more on the smaller communities now in california with potential for growth...like lancaster and some of the smaller dessert communities around palm springs...

Joe… I have been reading your posts. You put a lot of offers in. Do you have a letter of funds on file with all the banks you do offers? Or do you send that with the offers. Rick

....Keep doing what your doing and the deals will come. Sometimes it is a great strategy to buy in neighboring communities as close to the communities you want but are over priced. For example, there could be deals on homes one block from a community that you want to invest but it it a different town with a different zip code but the asking price is $100k less. If you find those up and coming communtities, today's deal can become tomorrow's best deals. Believe and Achieve! - Joe

...I will usually just send an updated POF letter each time for the purchase price that I offer. I can get a letter from my banker or CPA. You can also get a proof of funds (POF) letter from transitional funding lenders on-line. Good luck, these can be great deals! Believe and Achieve! - Joe

Thanks joe for your help. Ya all the realtors I talk to ask about POF. So now I know what to do. I will make some offer in very soon. Thanks and good luck.
Rick

Joe, what is DG Superstar / Inner Circle and how do I get in? I see a few people have that title but have no idea what it is.
Rick

Where in Ca. are you? I'm in Sunset Beach not far from Huntington Beach. I'm having a tuff time finding good deals here but I will find some.
Rick

Ok, I looked up the property appraisers site in my town - searched under bank names & found several different banks holding property taken back by them. I plan on using the method in Deans Our Town book to contact them.
Question, do you think I have any chance on making one of the stipulations that they fund the entire deal with maybe just $500-$1000 down (or no money down at all) with them knowing I am an investor and not going to be owner occupant?
Also, the site lists the original purchase price along with the assessed value, taxes, etc - i.e. person bought it in 2002 for $92,000 - now assessed at $152,000 - would I be crazy to put in a bid for $80-100,000. If the owner had refinanced it would have shown up but it doesn't. Comps on Zillow are near $150-$200,000 & over for that area. How do I come up with a figure if the house is in almost move in condition w/no major overhaul.
Or do I just forget about something like this.

...The information on the DG inner circle can be found at the following DG link:

http://www.deangraziosi.com/node/3653

...User Titles are based on contribution, knowledge and points. A DG topic Rewards For Your Participation provides some other inforamtion too:

http://www.deangraziosi.com/articles/rewards-for-community-participation

I hope this helps. Believe and Achieve! - Joe

...The key is try to determine the true and current market value of the property. If you get comps form a local realtor for similar houces that have sold in the past 3-6 months within the same area it should give you a good idea of market value. You offer should be based on the true market value and when you run the numbers they should be a break-even, or better yet, a positive cash flow. You never know a bank's motivation, which can change on a daily basis. We have had several deals where small local community banks have offered 100% financing with great terms. Good luck! Believe and Achieve! - Joe

Joe, Thanks for the link. Ok, leave some room for me I will join you soon. Have a great weekend and good luck investing.

Rick

...Well, I just have to remind everyone that the Christmas holiday is now officially less than 6 months away! So start your holiday shopping early to avoid the rush. It feels as though Summer is almost in full swing, but the rain just won't stop in the midwest! We have been getting more than our fair share of rain this Spring and the grass is greener than I can ever remember. It is hard to believe that July 1 is right around the corner!

Chicago has geared up for the annual Taste of Chicago event (30 Year Anniversary). It is a fun event to go to with entertainment and great food, however the key is use public transportation as they often encourage. Unfortunately if you drive into the city to commute for work, this is one of the worst weeks to drive around the Lake Shore Drive area, as the event normally draws nearly 4 million people over the 10 day event.

I saw Toy Story 3 this past weekend and it was a great movie. I really enjoyed it and I believe it is better than the first 2 movies. It was hard to believe that the First Toy Story came out in 1995! Wow, where did that 15 years go???

The real estate market in our area is going through a strange phrase. It seems as though people are waiting to list more properties until the market gets a little better. Some of the properties that have been on my radar, are not moving on price, but I keep making the same, or in some cases a slightly lower offer, every 30 days or so. The key is persistence.

I finally made it to Indiana Beach late yesterday afternoon. This area is a recreational lake (1200 acre Shafer Lake) where you can boat go tubing/water ski or use jet skis/wave runners, etc. There are places to stay near by as wel las cottages on the Lake. Even Al Capone use to have a place here right on the lake. It is funny how many local attractions I have not made it to right within the Midwest area. It was fun to see all the rides that were right on the boardwalk water front. I really enjoyed taking the lake cruise and seeing all the homes on the water front. I even got a few numbers for a few proeprties for sale and even an upcoming auction. You never know when and where you will spot a sign that could lead to a good deal, so always have your pen and notepad ready!

I hope everyone had a great week and will have a tremendous week ahead. Be sure to make the most our of your summer! Good luck finding that next real estate deal! Believe and Achieve! - Joe

im in the walnut creek,california area....yeah huntington beach i heard is an expensive area ...a good deal has to turn up sooner or later...im trying to focus on communities within commuting distance of L.A. like lancaster which is a growing area and some of the surrounding places around palm springs like la quinta, and palm desert...

Yes, HB is expensive. I've decided to look out side of HB. I looked in Lancaster. I have a realtor friend in lancaster that wants to help me but Im not sure I want to buy there. There is so many areas here. I just need to do more research. Well good luck investing.
Rick

Hello Joe, Well it looks like you had a great week. Thanks for the review of Toy Story. My kids our older now but my wife and I would love to see it. We went to the movies today and saw knight and day I did not like it. Little to corny for me.

Well real estate in Ca. is selling very fast if its a good deal. I will be looking for rehabs this week. I going to check out our local auction. I think I can get some good deals there.

Joe, what kind of deals do you concentrate on? I'm leaning towards buy and hold and some rehabs. I'm a general Contractor so I have a lot of contacts.

Joe, good luck with your area turning around.

Rick

...I know what you mean about the southern California market. I had the opportunity to visit the San Diego area a few weeks back and enjoyed viewing some properties with friends. It seems like the market in that area is picking up.

I like to do any deal where the numbers will make sense. Our current strategy is to try to build up some buy and holds for the future. There are several areas near me where homes in good blue collar areas selling a year ago for $100k+ that you can now pick up for $50k that will rent for $900 to $1000 per month. These are excellent bread and butter type of homes. Good luck on all your future deals. Believe and Achieve! -Joe

I found a home that has the above on it - presently at $5988.50 showing due. The judgement was put against it by the Homeowners Assoc. Also property taxes of $1410 have not been paid for 2009. It looks like the owner is a widow.
My question - if I could pay the total of $7500 (give or take a few dollars) would the property then become mine? There does not show a mortgage holder - looks like it is owned free & clear. It comes up for sale Aug 12.

The home was purchased by owner in 2001 for 98,000. It is now assessed at $93700. Property in this development is going from 95000-115,000 and a few at $125,000 per Zillow search. Finished area 1226sf.

How would I go about this. Who do I approach - the plaintiffs lawyers or the owner.
This is her primary residence - I don't want to throw her out if it becomes mine so how would I approach this area.

I have not done any deals yet - so don't know what to do. Thank you
Can someone pm me - I never can find where I last left off in postings to find replies.

I spoke with several local banks - they were quite nice - however, b/4 they would send me a list of REO's they wanted to know how I planned to pay the mtge. Wanted to know if I was approved and for what amt. & wanted ppwk.
So, since I am unemployed at the moment & not going back to work till Oct - guess REO's won't fly. I spoke with a few hard money lenders and they want 10-12% - a bit much since the homes I am looking at won't get rented for more than 750-900 - maybe 1000.
I told them I had a list of renters lined up so if they financed the whole deal I could send them a copy of the lease agreements so they knew payment would be made - that didn't fly either.
Any other ideas
Thanks

saw your infomercial on TV this morning. way to go, Joe! i liked your host; she was very believable and not some bunny beauty that reads her lines and sounds so fake.

Hello Joe, I wish I could find a house for $50k in my area... I've started looking about 600 miles outside of LA. I can find duplexes for $75k that rent for $600-$950 each. Have you been to the court house steps? I was thinking about trying the steps also. I really like the buy and hold strategy also... Well Joe, thanks for sharing... Good Luck investing. Rick