Matt's Army

Hi Carl its like any state, town,city where Realestate is being sold and bought you will find the right deals and you need to keep looking and find away to make it fit, wish you very much success, keep an open mind my friend and fellow investor and keep moving forward you will reap success, have an awesome day!!!!, Jim

Hi guys,

I read this thread and listened to Dean and Matt's webcast. One question I had, when I'm filtering through the properties, do I want to avoid all REOs? If so, what keywords do I look for to avoid them if the notes don't specifically say "REO"?

Vincent

I would not avoid REOs. Just make sure you understand any caveats the Banks or HUD may have in their addendums. In some cases, they have stringent no resell, 120% profit limits, and/or 90 day holding periods. Beyond that, they are just as marketable as any other property.

This town seems challenging. Have you tried going to an auction and meeting the cash buyers there? Maybe try finding an investment club close to you? Or Just try Lease option for a change.

Good luck, keep us posted.

Yes, the town is challenging, but there are opportunitites, I just have to find out what works. I have attended both Auctions and the local REIA, and that is where I have met most of my Buyers. I have also picked up a few Buyers via Craigslist. I believe Lease Options here are possible; however, I am primarily trying the Wholesale route right now.

Thanks, and I will keep everyone posted.

Hey Carl,
How's it going this week?

In response to the question from Vincent-- I am a huge advocate of REO's as a focus for wholesaling, so I would not recommend giving up on REO's, however IF you wish to search non-REO's do just that: your search would be NO-REO's [and NO-S/S's], but your quantity will go wat down, and adversely effect your 25:1 goals.

Carl, As I was reading that you have found most of your buyers at you REIC-- m,aybe that's your niche... I have found many investors (buyers) to be quite helpful. So, weed out the Rehabbers-- they need a better discount and are generally more frugal. Locate your LANDLORDS-- they will often pay closer to asking, so that will help with your lower spreads. Latch on to one LANDLORD (Buy/hold guy)... ask him respectfully for a little extra tie to hear about HIS deals... as he tells you about HIS deals and his favorite deals, absorb his criteria and tell him you will work very hard to bring him what he is looking for.... you might find a niche to grow from right there.

Make sense?

Hi Tina, Thanks for the suggestion! I think I will need to contact my Buyers to find out which ones are looking to buy and hold. I only know of two in my group and they have some very stingent criteria, but perhaps some of the others are the "buy and hold" type. In addition, I am also now thinking about going out on my linkedin account and putting out a blast for out of town buyers looking for turn-keys (which we seem to have a lot of in my town). I know a couple of Property Management companies that I could potentially hook them up with in order to give them in-town management. Thanks for the suggestions! I'll let you know how it goes....

Regards,

Carl

Keep it up Carl. All doors are open, don't let anything block the way.
You can do this. Keep talking at us.

Good thoughts--
Tina

Carl, thank you for those kind and encouraging words. I never give up, events like this make me work harder and look for ways to think outside the box. I try to create my own box!!
Thank you
Raymond

Raymond, You're welcome. In the true spirit of group support expoused naturally by Tina1, we all need to encourage each other as much as possible.

How about this thought: Why think there is even a box to think outside of? If possibilities are endless, a box requires you to put limitations in place or else there'd be no box.

Just a random, boxless thought

Andy Sager
DG's AndyS
CFIC member

Tina and Carl,

Thanks for the reply! I know there are a lot of good REOs out there, my question though is I thought you can't assign REOs? Would I just double close on an REO? Is there a way I can do it without having to worry about transactional funding costs?

I know you can assign it if it's not an REO, but I know REOs are becoming a big part of the market supply now.

Vincent

Well, I use the box to hold my profits in. I don't know what you do with yours.

My understaning on REOs: You will either have to (1) Double close (simultaneous in some areas) using Transactional Funding; or, (2) If you can find a Buyer between Acceptance of your offer and providing the "wet" signauture on a final contract, have your Buyer sign on the contract with you, and then you execute a "quit claim" the same day of closing, transferring your interest to the Buyer. However, I will defer to some of the more seasoned folks' responses. And I would definitely talk to a local attorney or title company official about what is acceptable in your state. Regards, Carl

Vincent:
The biggest problem at the time with REOs was the seasoning issue. Double closing the property removes the assigning issue but there may be issues or clauses in the contract from the bank to you(the A to B part of a double close) stating that you cannot resell this property for XXX amount of days or for a profit of more than X%. This is something you really should have your RE lawyer confirm and you understand prior to pursuing them. Know before you GO...

Hope this helps...

Andy Sager
DG's AndyS
CFIC member

I pay off my CC bills so there's nothing left to go into the receptacle as yet. LOL

AndyS

Hello

I can really use some help!

I currently have a motivated seller looking to relocate she has 2 houses that she want to sell both homes are 3Bed/2Full Baths, and I also have a buyer that Is looking for a 2bed/1-2Ba quick sell owner finance, handy man special

For my buyer can someone walk me through the steps to make at least a 20k profit from this deal, I can find homes within his price range which is 100k, I have been finding them for approx. 40k - 100k,

What I would like to know is what would be the best way to approach these deals.
Any help will be greatly appreciated.

Thanks

Michelle

Another thing Matt mentioned was that he was buying Homepath (Fannie Mae) homes at the 70% mark that met his other criteria. He said that a lot of folks don't want to deal with these properties because sometimes they are in such poor shape. I latched on to this idea, since I had already been buying fannie mae homes....Just put in 3 offers at 70% of asking price for three properties, all three accepted in less than a week,

Any one else purchasing fannie mae homes?

This is a good interactive thread

Thanks

judi