All Forum Posts by: Justin Campiotti

@David C. The comps I used were just a few comparable resales in the area. There wasn't a whole lot to chose from as the properties were located in Atwater, Livingston, and Merced. As I didn't intend to purchase anything, I wasn't too particular or detailed about the comps. My guess on rents... You would be doing well to get 700-750 a month from the first two houses that both sold at a little over $160K. That's a lot of cash to tie up for that kind of rent.

As for Los Banos, I'm not seeing a whole lot of upside either. Everyone was overleveraged when the bottom dropped out (a lot of Bay Area transplants in the mid/late 2000's) so the foreclosures are pretty close, if not over, market value. I'm sure there is a deal to be had, I just haven't found it yet!

Thanks for the info @Account Closed All of the bidders looked pretty seasoned so I doubt they were in the business of losing money! I thought maybe there was some other money making strategy at work here.

I just got back from a foreclosure auction and I don't get it. All of the properties went for above fair market value/comps/zestimates etc.

I understand the properties bought back by the creditor when they weren't being bid up enough, but what is the strategy for the rest of the bidders? I can't imagine they are trying to flip the properties, and the numbers don't make sense to me to hold as a rental. The properties were spread out geographically speaking so its not a developer grabbing up chunks of land (I don't think). What am I missing. How are these buyers planning on making money?

Just made an offer (short sale)… do I win a prize?

Why chose? What if you set enough money aside to pay cash, but instead finance them? Then if the debt is too stressful you have the cash to pay it off whenever you want! If after a few months or years you're okay with the debt, then take that money you set-aside and use that to leverage more properties.

Personally, I hate having debt and I am aggressively paying down the mortgage on my primary residence. But with money so cheap right now, I am constantly second-guessing my decision. I don't think you're going to get a quick and easy answer on this topic!

@Latriece Williams I am not, although my wife is. However, she hasn't been in Real Estate since our son was born. She just hasn't let her license expire.

Quick update: I spoke with Wells Fargo and they seem interested in providing a loan to an LLC so we'll see where this goes.

@Greg B. I never thought of it that way. Very smart, I like it!

@Jon Holdman Any recommendations on banks that do portfolio loans?

@Jeff Greenberg I've even seen some 4-5 caps on the market in California