All Forum Posts by: Marcus LaGrone

Thanks Steve and Trace.....
What would make you interested in a national database.

I have been back and forth with one of the larger lenders and they are considering putting together a national database of houses that they consider as Investor Only properties. They are trying to avoid as many costs associated with these REO's as possible (Trashouts, lawn maintenance, commissions, etc.). If a website like this existed, what would make you purchase from them?

Thanks

In certain Zip Codes the majority of houses under a certain price range will more than likely be sold to investors.

If an online (national)master list was available with all of the lowest price properties in your area, but had the following stipulations, how likely would you be to purchase one?

Will not pay a commission to a buyer’s agent
Seller will not pay closing costs
Priced at the banks 30 day sales price minus 10%
Must close within 3 weeks or Earnest money is non-refundable
No negotiation on terms
No trashouts were completed
Standard earnest money $5000 (No exceptions)
Strict 5 day inspection period

Would you be interested in obtaining these properties?

How would you feel if the property was currently occupied and you had to deal with the tenant according to the new laws mandating 90-day Eviction Notice to tenants affected by residential foreclosures?

Justin,
Some of the things that we put in place that our clients seem to enjoy are:

Lease Guarantee:
Ask if they offer a Lease Guarantee. If the first months rent is going to your manager you should have a guarantee that the tenant will stay for their term or your money (or a portion thereof) will be refunded.

No Security Deposit Admin Fee:
This is a bogus charge. Several companies say they are charging this to the tenant.
Example: Security Deposit $1500 / Admin Fee charged to the tenant (from their deposit) $150. Applicable deposit = $1350. Now technically it was charged to the tenant, but if the tenant damages the property, you only receive $1350 instead of the full $1500.

No Lease Renewal Fees:
Many companies will charge you a fee (as much as 1 months rent) when a tenant renews their lease. A small admin. fee is acceptable, but anything more than that is rediculous.

Online Payment Options:
The check is in the mail just doesn't seem to work anymore. Online payment options gives your tenants that procrastinate the ability to pay at the last minute at their convenience.

Make sure the Property Manager is not managing property part time. This is a full time job.
Make sure they have their network in place...Accountants, attorneys, maintenace crews, etc.

The list can go on and on, but use your gut.

Here are a few things to get you started.

Shahriar,
This is probably the only time that I would disagree with the majority of posts on a topic.

If the Realtor that you are speaking about does several BPO's per month, that is a VERY valuable list.

Why? The majority of lenders order the first BPO when a mortgage exceeds 60 days past due. Contrary to what most people think, a bank may order 3-5 BPO's and an appraisal during the delinquency and foreclosure process. If you have an agent or agents in your area that are willing to give up their lists...take them, send mailouts, and get the owners to do a short sale.

Sorry Michelle, but I have to disagree with you. I have been working with REO's and banks for 8 years and we never are given information pertaining to their job openings. I would simply check the different job websites (Monster, etc).

On another note, if you have any information that will lead to us receiving listings from Ocwen; a referral or contact that we should speak with, I will pay you per transaction closed....Let me know and happy hunting.

LOL
No Tom you have it all wrong. It's don't say investor, owner financing, and 4841 miles away.....in the same sentence.

Great Posts!
LOL Rich!

Tom...why Owner Financing if you have the ability to pay cash? Owner financing is a lot more work and risk.

As an agent, your initial conversation would have thrown up a red flag with me also.....and a large portion of my clientele are out-of-state investors.

If I get a call from an investor that is several thousand miles away and the first conversation mentions owner financing investment property, I would tell him/her this.

If cash is not as plentiful as you like, start with one property....allow us to manage the rehab process, sell the property and continue doing this until you are comfortable enough with your reserves to purchase properties to hold.

Owner financing is a method that involves a lot more diligence. It is one thing for you to be local and share in some of the tasks (prospecting, etc). It is another thing to be thousands of miles away and expect an agent to perform those tasks.....even if you are going to pay the commission.

But...I also agree with some of the other posts. Find a new agent....one that can communicate this to you.

Ever considered Atlanta!?! :-)

But anyway....Bienes, if this is a RESPA issue, why are you considering suing the Real Estate company? It sounds like any issue of estimation unless you were deliberately quoted a tax amount (in writing) by the Seller or Seller's agent without full disclosure stating it was an estimate based on previous tax bills. Otherwise, as Jon stated it becomes either.
A) A title issue (if prior taxes were not paid)
or
B) A estimation issue (covered by disclosure by the title company)

If "A" it will be covered by your title insurance policy (if you purchased one)
or if "B", you have no recourse.