OfflineYEAHHHHHHHHHHHHHH.....Deal #2 accepted today!!!
SFH -
ARV: $161K
Purchase Price: $63K
Repairs: $40K
Yeah....how's that for equity!!!!
I have my lawyer reviewing all the attachments from the bank. Assuming all is good should be signing the P&S on Monday!
I can't assign the property since it is an REO. Before the EDGE I would have planned on a double close. But from what I learned at the EDGE I am going to get a hard money loan, fix the property, lease it to own, the refinance and cash out! Yeah BABY!!!!!!
On to deal #3!
__________________
... Verses: 35 "but those who hope in the Lord will renew their strength. They will soar on wings like eagles; They will run and not grow weary, They will walk and not be faint." Isaiah 40:31 ...
Typically you can not assign an REO or Short Sale. There are a number of methods you can use (check on line here for more ideas). I will go through what I am planning on doing.
1. You need to find a good deal!
2. Get the property under contract.
3. Purchase the property using a hard money loan (there are resources on here or check you local REI club).
4. Rehab the property (using the hard money loan).
5. Market the property while you are renovating.
6. Get a tenant (I plan on lease to own).
7. Refinance the property using a small local bank
8. Cash out some of the equity and collect monthly leases!!
hey my name is Kim. i have steps 1 and 2 done buy locking up an awesome 4 homes in a package deal for my very first deal ever. Now we are looking for buyers. I considered going with a hard money lender and doing the work with my business partner. But can it really be that simple? I'm just going to be honest and ask can it really work out being that it is my first deal? I also did not know that you can't assign REOs, although these properties are for sale by owner. My credit is not the best, so I don't know about refinancincing with a bank at this time. But I considered just flipping and selling if I don't find a buyer ASAP. Am I going in the right direction? Open to suggestions.
Sounds like you got a great deal cooking yourself! Try you local REI club and look on here for 80 tips to find buyers, try posted an ad on Craigslist.....
I guess I used the excuse I'm older now, I can wait, (like heck I can)
I found a seller, tripped over him, actually, now an investor will fly into my life and all will
be well. HA! Am I an idiot or what. The seller was over priced by a lot so I
thought he wouldn't budge so I forgot it. Well he called me TODAY and said
" I will take 250K for that property I wanted 400K for. Please get me a buyer and quick. Well you know the rest of the story. I didn't have an investor cause I thought (who am I to think for some one else, somebody slap me) it was way too high so I didn't do ANYTHING. What a lesson I learned. I am beating the bushes looking for an ivestor today that will go 260,000 and I will offer
said seller 235,000 (he'll take it). PLUIS this guy has about 10 more condo's he wants to sell . Well guys and gals. wish this old broad luck.
I am FINALLY working the program. I will find an ivestor and when it closes and I have a check for 25,000 in my hand I will let you all know.
This was just a nice way of saying to those that keep reading, and keep thinking and keep dreaming to STOP IT RIGHT NOW and get off your cute little butts and do it all. Get the buyers, get the sellers, get the realtors and
have a list so long it trips you. Love all you guys that teach us through your stories and your victories and defeats. I am finally on my way. Louise
YIPEEEE !!!!!!
... Verses: 35 "but those who hope in the Lord will renew their strength. They will soar on wings like eagles; They will run and not grow weary, They will walk and not be faint." Isaiah 40:31 ...
Thank you Linda...no stopping me now!
... Verses: 35 "but those who hope in the Lord will renew their strength. They will soar on wings like eagles; They will run and not grow weary, They will walk and not be faint." Isaiah 40:31 ...
Thanks for your kind words and your prayers! Don't just sit on the sidelines and watch, jump in there and take action and don't stop!! You can do it too! Isn't this web site awesome??!!! Where else do you get this kind of encouragement?
Im so happy for you at this rate your going well be on that cruise in no time!!! I have bookmarked your journal and your progress becuase I fell your desire and your excitement jumping through every single sentence that you write. May god continue to bless you and keep at it!!!! Can't wait to hear deal number 26!!!!
You deserve it,
All the best
Gorgeous Frazier
... Verses: 35 "but those who hope in the Lord will renew their strength. They will soar on wings like eagles; They will run and not grow weary, They will walk and not be faint." Isaiah 40:31 ...
One way to determine the cream is to check what selling, sold, and listed comps in the area are compared to what the REO is listed for or what the lender will accept(make an offer that works for your strategy) Usually 65% to 70% of ARV AFTER repairs if you are going to fix and flip. You can offer a little more if you are going to hold etc.
Personally right now in the market where I am I would rather get the house from the homeowner before it goes to auction and becomes an REO. This could change if more of the shadow REO inventory becomes available. Right now to much competition is driving up REO purchase prices. Not that it can't be done, but I think it is way easier to deal with the home owner in distress that has at least 30% equity and get the property under contract.
Hope this helps,
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
Keep plugging till you find your niche! There is a way to make this work anywhere!
Shawn
... Verses: 35 "but those who hope in the Lord will renew their strength. They will soar on wings like eagles; They will run and not grow weary, They will walk and not be faint." Isaiah 40:31 ...
Thanks for the tips on the hard money loan!
1. Get a binder from Office Depot with a set of tabs. Mark these tabs as follows.
About me. This section should include a FNMA 1003 loan application, a copy of your credit report, a copy of your drivers license and a brief resume of your of your experience. If you have no experience, then list books you have read or seminars you have attended.
Purchase Contract. A copy of the purchase contract with addendums should go here.
Appraisal. Ideally an appraisal, but at least a real estate broker BPO should go here
Insurance Binder. A copy of a commitment to insure from your insurance provider goes here.
Title Commitment. A copy of title commitment should go here.
Photos. Detailed color photos in and outside of property go here
Inspection. Have a professional inspection done of the property and put report here.
Repair Estimate. A repair estimate from a LICENSED general contractor (with a copy of his license) should go here
Numbers. Insert a spreadsheet of the breakdown of the numbers. Your purchase costs, closing costs, holding costs, repair, realtor fees, etc.
Timeline. A diagram of the out line or your construction project should go here.
Present this to a hard money lender on a deal that you can purchase at 70% or less of ARV and you WILL get a loan!! For example if you purchase a property at 50% of ARV they will still loan at 70% of ARV so you can use that money towards your rehab costs!
You must be able to show how you will fund your re hab and cover the cost of the hard money loan. Usually 6 months of monthly payments in bank plus pay the lender points up front.. Hard money is usually NOT a no money down, I have bad credit strategy.
Hope this helps all looking for a hard money loan. Don't forget to figure to costs of the loan into bottom line!
Michael Mangham
MD Home Acquisitions LLC
... Verses: 35 "but those who hope in the Lord will renew their strength. They will soar on wings like eagles; They will run and not grow weary, They will walk and not be faint." Isaiah 40:31 ...
So glad to come online and see your headline! So happy for you - way to work it and step outside the box and apply new techniques! Congrats to you!
www.adeptpropertiesllc.com
my story:
http://www.deangraziosi.com/node/10404
IM Jumping!!! Head first
this site is awesome one of the most genius things that Mr. G designed. keep a look ok for me!! everything will infold for me very soon!!!
You guys are soooo amazing.. truly a Family encouraging each other, giving advice..such a great support system.
God Bless,
Gorgeous Frazier
You actually want to line up your buyers first, so you don't get stuck with a property you can't buy with no where to turn.
If the are For Sale By Owner you should be able to assign them. Another option if they are REO is to double close.
Good Luck! And keep moving forward!
Typically you can not assign an REO or Short Sale. There are a number of methods you can use (check on line here for more ideas). I will go through what I am planning on doing.
1. You need to find a good deal!
2. Get the property under contract.
3. Purchase the property using a hard money loan (there are resources on here or check you local REI club).
4. Rehab the property (using the hard money loan).
5. Market the property while you are renovating.
6. Get a tenant (I plan on lease to own).
7. Refinance the property using a small local bank
8. Cash out some of the equity and collect monthly leases!!
hey my name is Kim. i have steps 1 and 2 done buy locking up an awesome 4 homes in a package deal for my very first deal ever. Now we are looking for buyers. I considered going with a hard money lender and doing the work with my business partner. But can it really be that simple? I'm just going to be honest and ask can it really work out being that it is my first deal? I also did not know that you can't assign REOs, although these properties are for sale by owner. My credit is not the best, so I don't know about refinancincing with a bank at this time. But I considered just flipping and selling if I don't find a buyer ASAP. Am I going in the right direction? Open to suggestions.
... Verses: 35 "but those who hope in the Lord will renew their strength. They will soar on wings like eagles; They will run and not grow weary, They will walk and not be faint." Isaiah 40:31 ...
It feels great!
... Verses: 35 "but those who hope in the Lord will renew their strength. They will soar on wings like eagles; They will run and not grow weary, They will walk and not be faint." Isaiah 40:31 ...
This is so awesome to hear!!! Good for you, you're well on your way!
Thanks for the info on hard money proposals Michael!
Hey Chris, that is excellent!! I will continue to watch your progress and if you don't mind, "steal" a bit for my business. Continue on your road to greatness!!!
Ogal
"Only those who can see the invisible can accomplish the impossible"
Patrick Snow
"Instead of using your words to describe your situation, use your words to change your situation" Joel Osteen
Take all you want! That's one of the reasons I keep a journal, hopefully there is some good information that someone can use, or maybe to retrace my steps if I need to.
Ogal
... Verses: 35 "but those who hope in the Lord will renew their strength. They will soar on wings like eagles; They will run and not grow weary, They will walk and not be faint." Isaiah 40:31 ...
Keep it up -- there's always more money to be made.
Thanks for that Info. Now I know a hard money loan is not right 4 me I have no $$$ & I don't have bad credit or good credit I have no credit I have never had a bill in my name besides 2 magazine subscriptions & a cell phone bill been technically Homeless since I was 19. But I'm working on completing some no money down deals & I have appointment on Friday w/a couple potential short term Investors who might help w/a HELOC or through there IRA. I will just keep grinding it out b/c where there's a will there's a way. & Something's going pan out sooner or later.
Hard money loans are based on the deal, not your credit. Some will allow you to pay the fees at closing and not up front. If you have no credit, this is the way to go.
... Verses: 35 "but those who hope in the Lord will renew their strength. They will soar on wings like eagles; They will run and not grow weary, They will walk and not be faint." Isaiah 40:31 ...
Is your HML person willing to move the points to the end of the loan instead of wanting them up front? The ones I have spoken with want the points up front and at least 15-20% down which is still difficult for me.
Kristin
You never wavered and success is now at your fingertip. I am very happy for you. Keep those deals coming. God Bless.
Sandra
"You can never get to the top, if you are not willing to climb. Do not look at the difficulty of the climb, only anticipate the view from the top."
"Can't even walk without you holding my hand." (Song)
"Is anything too hard for the Lord ..." Genesis 19:14
"In all things, wait on the Lord."
"Think not of your own deliverance, but trust in God who will give in abundance."
"When you are down to nothing, God is up to something." Unknown
"Our lives begin to end, the day we become silent about those things that really matters." Dr. Martin Luther King Jr.
Michael, that definitely sounds like a better way to go to eliminate competition, but how do you find out what's in pre-foreclosure? If I could find out houses that are in default I would call, mail a letter or visit the owner. Is there a way to find that info?
Deshone
Where I am located, the counties that I work have websites that allow you to look up the latest notices of default. We run a report once a week, determine which ones have equity (check what is owed on the house and compare it to the market value) We then call the owners if we can find the phone number, if not we send hand written post cards.
Over 85% of the properties we research weekly (averages 600 per week)are upside down and in a short sale situation, We refer these homeowners to our short sale team.
Doing this research, weeding out the ones that have equity or are good short sales, then eliminating the ones that are not a deal, calling and/or mailing
to the ones that have potential takes 2 Days a week. Then if we have positive response we pursue them on an individual basis.
Also, if the counties that you are working do not have websites you just go directly to the court house and ask for notices of default.
Also, on hard money loans, lenders will check your credit history, not so much for your credit score but for your credit history. If you have a foreclosure, bankruptcy, repo or lots of late payments this will affect their decision to loan money to you no matter how sweet the deal.
Good Luck Everyone!!
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
AWESOME job on deal # 2 !!!! way to pound the pavement and TAKE ACTION !! way to go man,you deserve a big congrats for your attitude,desire and constant determination !!!! i know you will have MANY opportunities to capitolize on in the near future.great job DONT STOP!!
jay
Click Here For homepage www.jaysthilaire.com
need to sell ? http://www.jayhousebuyers.com
Need me to FINANCE a home ? http://www.jaysrenttoown.com
CHECK OUT MY JOURNAL http://www.deangraziosi.com/real-estate-forums/investing-journals/20063/...
Thanks chris for the tip. yeah i'm starting to really understand the importance of buyers list first! i had a small list of buyers but I realize that I need a ton more. TO MY FELLOW NEWBIES OUT THERE IT IS VERY IMPORTANT TO HAVE A LARGE BUYERS LIST FIRST!!! there are so many properties out there to be locked up on contract but having your buyers list already in place will definately help you, for when you get your properties under contract. Then you can just go to your large list and start shopping it around. Once you have a property under contract from the moment it is signed by all parties your clock starts ticking. Based on your contract and the contengencies that you put in regarding due diligence tells you how long you have to assign it or buy a property. I know its been drilled over and over into our heads but there is a good reason why. Thanks chris again congrats on your deals. may u be blessed to do many more. Kim
Congrats on your hard work!
I recently heard an R.E. Investor talking about assigning his REO's.
At closing, he puts the title of the property in an LLC. Prior to closing, he had a buyer lined up for the property. He then "sold" the LLC to the buyer.
I really don't know the details, documents needed. Just thought I'd put it out there to see if anyone else is familiar with this type of transaction.
SuzyB
Race is on!
... Verses: 35 "but those who hope in the Lord will renew their strength. They will soar on wings like eagles; They will run and not grow weary, They will walk and not be faint." Isaiah 40:31 ...
Thanks for all the kind words!
I had my lawyer review the addendum and it was all the standard REO stuff. So I signed them, faxing them in now!
... Verses: 35 "but those who hope in the Lord will renew their strength. They will soar on wings like eagles; They will run and not grow weary, They will walk and not be faint." Isaiah 40:31 ...
Hey, you do such a great job supporting and encouraging others. So, it's great to hear that success is coming your way - that hard work is now paying off. It was nice meeting you at the Edge - now I can put animation to your picture. Keep it going!
Thanks for you kind words! At the EDGE when I met Dean he mentioned he had seen my posts and to keep up the positive posting! I was impressed that he had read then, and even more impressed he made the connection.
It was nice meeting you and grabbing dinner with you one night!
... Verses: 35 "but those who hope in the Lord will renew their strength. They will soar on wings like eagles; They will run and not grow weary, They will walk and not be faint." Isaiah 40:31 ...
Well, all the paperwork went in yesterday, but I haven't heard anything yet, that is usually good new right?
... Verses: 35 "but those who hope in the Lord will renew their strength. They will soar on wings like eagles; They will run and not grow weary, They will walk and not be faint." Isaiah 40:31 ...
That may be a good thing, but with these banks, you never know. Good luck with everything and hope they come back with a response before the weekend...
Kristin