All Forum Posts by: Aaron Wyssmann

Andrew,

Sorry I'm a little late to the party here for you.  Congrats on your decision and welcome to BP.  Sounds like your past couple years of experience has prepared you very well to achieve your goals.  It's always great to meet like-minded folks from the same town I'm in.  Maybe we could meet up for some coffee sometime soon.

Take care,

Aaron

@Wes W.  You're definitely looking at this the correct way.  The first question you must ask is what are you doing this all for? Do you want to just flip it or keep as a rental?  As you'll read out here on BP there is a whole wide array of philosophies when it comes to houses like the one you're describing.  Some don't want to have anything to do with them and then others love them.  You just need to determine what the end goal is with this particular home.  You may just want to make a couple bucks, learn lots along the way and move onto the next deal.  Just determine the end result you are looking for.  I'm happy to help in any way.  

@Tab B.

These are some great questions and they are very dependent on the deal you find, how long it will take to rehab and what kind of market your location is in when you have the project completed.

If you find a good enough deal you could potentially not have any of your own money into the project if you find a great lender to work with or a hard money lender.  If you find a property say in the next month or so and are able to rehab before next March when the housing market typically heats up you could potentially sell quickly.  

Lots of variables to your question.

Anything is possible :)  You will want to find a great lender to work with, specially in the area you are wanting to invest.  That lender will know and understand their market and would be more willing to loan against the properties you are buying and not so much on you as an individual.  

You need to make sure that you present your best foot forward in speaking with a lender.  Put together a nice folder of your finances as well as your intentions with RE.  Dress nicely when you visit them and be as professional as possible, that will score you lots of points.

Good luck.

Originally posted by @Douglas Skipworth:

We live the by mantra, "Your price, our terms. Our price, your terms.", which means to pay the seller's asking price we want to define the terms. If the seller wants to define the terms (for example, all cash), then we want to set the price.

Someone once told me, "Don't wait to buy real estate. Buy real estate and wait!"

Doug,

I liked these to quotes you have they are great.  I especially like the first one.  I may try that ona a deal I'm trying to put together now.

Thanks and great work on the excellent find.

I just submitted offers on two HUD homes and neither was accepted. They sent me an email stating what their lowest minimum net is for the properties. My question is there a point to submitting an offer that is lower than their minimum? I know that at time goes on they eventually lower their number. I've bought one other HUD before but didn't have this issue. Any help or experience would be great.

@Jessica Farrell  I understand now what you mean.  There's really not a whole lot you can do, unless she decides to pay.  If she's on on the lease then she has no legal obligation to pay herself that is...it might be different since she is an SSI payee but I don't believe so.  Consult with an attorney to be sure.

You can put anyone on the lease as long as they are willing to sign.  For example, our company has some college rental homes and for each of those we get as many parents as possible to co-sign.  They won't be living in the property but they agree to be held financially responsible for any damages, late rent, etc.  If they don't then if you decided to file a suit they would be listed on it as well which is something most honest, hard working adults don't want.

You need to document everything that has happened.  Type it all up, when it happened etc.  If she is leaving then the only way you will ever see that money is to sue her and get a judgement for the amount of damages.  The only issue is that you will spend money on attorneys, court costs and more to make that happen and I'm betting she is not very collectible.

This situation sucks but if I were you I'd try to find what you learned in this whole mess and how you could possibly avoid something like this in the future.  Maybe it is a better tenant vetting process or something else but I'm betting you won't ever see this money.  Get it fixed back up and rented out.

By "payee" do you mean a co-signer or is she actually on the lease?

That is a bummer.  Do you require that the tenant show you verification that all utilities are in their name?  We do that before we will hand out any keys for the exact reason you made this post.