DEAL #2!!!!!!!!!!!!!!

They were in a rush to get my offer, but it is a bank owned property so they may take their time. Hope to hear soon!

Chris way to go. This is great news..... I to am pushing toward getting my second deal done. I think it's awesome that your going to rehab the property and resale it. Do you have a team of people that are going to go in a rehab it for you or are you doing it yourself? The reason I ask is I am trying to figure out costs and things on where to order the cheapest but good quality carpet, paint, ect, Did you do price comparisons in local stores or do you buy your materials off of the internet somewhere? Any advice is greatly appreciated.

Even though I could do it myself, after 2 significant home projects I have vowed never to do it myself again (unless it is very minor). My time will be better spent finding other deals. I have a estimate form I use to estimate repair costs and then add a buffer in for things I may have missed or unforeseen items.

I will end up getting quotes form at least 3 contractors to do the work.

Still waiting for the bank to sign the paperwork....ugh...they were in a rush for me to sign, now they drag their feet!

It's rather amusing to see how they push you to hurry up and then turn around and disappear for a while to think things over and eventually get back to you...

Do they want to sell these homes or what?

I am also meeting with a DGer on Monday to pick his brain. Wonder if the same person???

Kristin

Aloha Chris,

You mentioned the "Edge". I see that Dean has a CD set of "The Edge". Is that the program you used or did you go to an actual "The Edge" seminar/training?

Thank you so much for posting your progress journals. I've started a new file dedicated to your journals in my DG real estate archives. Your experiences are helping to supplement the guidance I am receiving from Dean's books and other resources as well. You are a tremendous help--a true God send.

Mahalo Nui Loa,
Elena

There is a DVD set of last year's EDGE,this year's should be coming out soon. But I actually went to the event this year, it was awesome! You should go next year.

Glad you are enjoying my journal! I am no expert yet, but you can certainly learn from my experience.

By the way, what does your closing mean?

The P&S was executed today!!!! Closing is scheduled for 7/15, we will see if that can be moved up.

I am working with my lawyer to prepare for the closing, plus I have contacted 2 hard money lenders!!

Weee....the fun begins.

Keep us posted if you find a hard money lender to work with. You work that deal and find the next one!

Kristin

The title has been ordered, we are waiting on the bank for the deed. I am also waiting to hear from the hard money lender. Wondering if there is something I am forgetting to do. I think I will call the Academy and make sure I have everything covered.

If I don't hear from the hard money lender I may have to go to plan B.

Oh, I heard on the Bill O'Raffety video today that when buying REOs you should try to use the bank that has the REO...hmmm...great idea Bill!

Well the 2nd hard money lender I spoke to will finance the purchase and the rehab but wants be to put up 30%, that's a little rich for my blood right now.

Luckily I have been talking to a mortgage broker that has a relationship with hard money lenders, they may have better terms. I also spoke to a local small bank, they won't do rehab financing, but the will refinance after the work is complete, no seasoning, they will go up to 75% LTV based on the appraised value of the property and there is no limit on the number of loans they will do! Oh, they include the rental income in their analysis.

I am also getting some insurance quotes.

Will keep you posted.

Hey Chris,

Going by your numbers you should be able to get 70% of ARV $112,700 from most any hard money lender. Did you submit a packet like I advised you to do when requesting the hard money loan? I'm telling you it really works! When they see that, they usually will not ask for the ole "skin in the game". Whats your guy talking about? 30% of what? What do the guys in your area ask for? 5 points and 15% or? Also the hard money guys will lend on their appraised ARV.

Good Luck!
Michael Mangham
MD Home Acquisitions LLC

No I had already talked to the first hard money guy by the time you sent you tip in. The other hard money lenders are through a broker. I will have to reread your tip. Yeah they are looking for skin in the game. I guess I should go back and do my homework, the 2nd lender suggested I get an appraisal. The first guy I talked to would only loan money on the purchase price, he wanted me to pay for the renovations and 1/2 the purchase price....geez...if I had that much cash I wouldn't need a hard money lender. I am not sure on the terms on the other lenders, we haven't gotten that far yet.

Thanks again for the tips!

As much as I want to hold onto this property it will tie up all my cash and prevent me from doing much on deals. I am thinking I should take the cash and do some more assignments and/or double closings until I have some cash put aside. Any ideas here?

I am going to wait to hear what the other hard money lender say before I make a decision.

If you feel it will block you from advancing in the case a fantastic deal comes along, then quickly sell it to one of your buyers and move on.

The mortgage broker I had been working with ended up a bust with not returning calls and saying he had faxed something when he definitely hadn't. I can no longer recommend him for any deals where time is of the essence, and am sorry I spoke so highly of him to begin with. Very disappointed in his actions.

Keep on moving ahead and find that next deal!

Kristin

Thanks Kristen!

I have been using Paul and he did come up with a better deal. I came across a fellow DGer that works for a mortgage broker so I might try them.

I am going with my gut to sell it, even though my heart says to hold it.

in dealing with him. He had gotten a fantastic deal for me too, and now has fallen off the face of the Earth. I sent a rather direct email asking why he hadn't returned my call or that of my agent, but still no reply or return call. I have already moved to another mortgage lender who is totally on the ball and we are still moving forward.

I just worry that he will not pull through when you need him the most, so take extra caution and best of luck.

Kristin

Maybe it will be too late to learn how to attract private money lenders, but you set the terms with a private money lender, there aren't a bunch of points to pay up front, and you can get rates at 7-12%.

This is my newest website (not finished yet, but ALMOST!). Lots of info on here. I can't get my form working for the 26 page report, but it will give you some info. www.investmentsbackedbyrealestate.com. I'll PM you a great program to teach you how to legally get private money lenders that is so wonderful!

Thanks for the tips, private money has been in the back of my mind for a while, I wanted to get a few deals under my belt before I did it so I could show them some facts.

I like your website, where did you get it from, and have you had an success with private money yet?

God Bless

OK, so I got an e-mail from my attorney today. Apparently the bank may not have foreclosed on the property correctly??!! The are supposed to advertise locally, and the put the ads in the wrong paper. If that is the case they have to re-foreclose and I have to re-offer on the property. I hope they are wrong.

Two things immediately came into mind. 1. Maybe I can line up some financing in the mean time?? 2. Matt Larson had a similar incident, the seller wanted to back out and he ended up with cash in his pocket and a line of credit. So I am thinking.....hmmmm maybe I want this to go back to foreclosure.

Has anyone else seen this?

Hi Chris,

I don't know what the foreclosure laws are where you are, but I am sure they are available to the public. I have read the one for Colorado and the Colorado protection act and neither say anything (maybe I missed it)About having to publicly advertise the auction Date or the fact that a property is in pre foreclosure status. Notices of default (election and demand in Colo.) and auction are recorded at the county and sent to the homeowner, if they don't cure the loan, the house is sold at auction to the highest bidder or the lender takes it at the minimum bid amount, period. The foreclosure process is done, the lender (now a REO) or highest bidder owns the property. In Colorado there is no redemption period for the owner after the auction.
If you have a contract signed and approved by the lender and yourself to purchase this property, I would ask for all documentation concerning the need to re-?foreclose. Did you submit this through a realtor? I would talk to him/her for a written explanation from the lender.

Let me know how this turns out and if there is such a thing as re foreclose doe to ad in wrong paper.
I think some one is blowing smoke in your direction in order to get a higher offer. I could be totally wrong! Are you sure you have a signed and approved contract in your hands? If so, you are still the buyer when they straighten out what they need to fix I would think. I could be wrong on that to!

Good luck and keep us posted

Michael Mangham
MD Home Acquisitions LLC

Tip of the day: Never purchase without 2 exit strategies in place first!

I read about this in an article. A guy had actually bought a foreclosure at auction, and the bank didn't realize that the owners had been lifted out of foreclosure and shouldn't have foreclosed at all. They ended up paying the investor 20 some K to take the property off his hands. Your situation is a little different, but you may be able to get some compensation somehow; though I do not know the laws at all!

I have not gotten a private money lender yet because I have just started, however, I have a couple of people to go to and have already learned so much that I know it will not be too difficult if I follow all the directions and keep myself SEC compliant.

I do have an attorney on this, it is all part of the title search process. I am looking at this as a positive. Matt Larson ended up getting $75K and a $500K line of credit out of the deal, it was a much bigger deal.

I am thinking they are trying to get a better offer myself.

I spoke with both my realtor and my attorney and they both feel the deal will go through, it just may take some time. So it is a waiting game right now. While I wait I am looking into private money.

This deals seems to go on and on and on...will think twice about another Bank of America REO! LOL

Well my attorney says they cleared up the issue with the foreclosure, but is still waiting for some paperwork. Not sure what that means, I could use some more time!

I got two messages from possible buyers and I called one of my buyers to see if there was any interest! I also called my hard money lender in case I need a backup plan!

Also the insurance companies have been slow getting back to me, but I may have a place in Ohio that is real cheap!

Great job! I have a deal i am working on that also is a REO.

I want to fix & flip it..

My question is Did you put in you orrfer to the bank before you had a hardmoney lender...If so how much time did time did you make your contract for ?

thanks,
Eric

Really happy for you busting things open for yourself! Keep it rolling

Great job! Are you mainly wholesaling or have you flipped a few houses as well??

I'm investing through out the San Antonio TX area as we speak so if you come across anything, im a cash buyer!

-Cory

Thanks for your comments!

The bank set the terms, originally I was going to flip this, I still may, so I got the hard money lined up after. The bank had set up about 5 weeks from the contract to the closing, they are using every day!

Thanks Laura!

There are a few more in the pipeline, so hopefully one of the other deals break soon!

laurajohnson wrote:

Really happy for you busting things open for yourself! Keep it rolling