All Forum Posts by: Alex Baev

A great recent article from a BP member that could get you started on thinking about pricing your HUD offer: http://www.biggerpockets.com/renewsblog/2013/07/07/buying-a-hud-home/

The author also has a blog that goes into more details

@J Scott,

When you see the Hudhomestore listing say something like "Repair escrow: $4,070", what does that tell you? That the bank acknowledges that there are $4K worth of repairs? Or has the bank already set aside that money in escrow for repairs?

I'm in love with this new saying I've been hearing from RE investors of all types regarding a myriad of practical, business, moral/ethical and even legal issues. It's a mix of legal-speak, figure of speech and a distancing technique, and it goes like this - "Whatever the market will bear"

I hear it on this forum and others, in podcasts, REI meetings and open houses...

"The rent I charge is whatever the market will bare"

"I'll put it up for sale for whatever the market will bare"

"I'll offer to pay whatever the market will bare"

Something to think about, on both sides of the isle

two options i know of - a new tub insert, that fits over the existing tub. not cheap, but cheaper then a new tub.

and an epoxy resurfacer - it's all in the prep, if done properly should last a while

@Moe C.

The same thing that happens to any other mortgage that's not underwater - person that buys the property from Michael (Batman) will either settle the mortgage out of escrow, or continue carrying the Sub 2 contract and making payments on it... or something else more creative, but more complicated... but why, if there's equity?

Mr. Q is Batman - he appears out of nowhere, takes it sub 2, solves a problem and dilutes any of our hopes of becoming cool (:

@Timothy Aing

I was going to post even before your troubling update, but decided not to - as a lot has been said on both sides of the isle. That said, the advice of both parties - those for and against inspectors ultimately amounted to the same thing - that you need to do your own good old due diligence. And that simply means different thing to different investors.

If you and your FIL simply walked through the house and "estimated" repair - that's clearly and simply not enough. Your FIL probably hadn't jumped into overalls and crawled underneath the house - any contractor that does and who has your interests in mind would be able to point out first signs of termites, mold, moisture and things like obvious cracks in foundation that old houses are famous for. Old-school masonry - be it foundation, bricks or blocks - were usually made of only lime and sand, no cement, their proportions have to be exact and they cured very slowly and could be adversely affected by water exposure early in the curing process. Lime and sand foundations and briks crumble more easily under severe stress, but are known to self-repair tiny hairline fractures if stress is minimal.

Any inspecting entity recommended to you by either buying or selling agent is a conflict of interest, and should be avoided.

The bottom line, if you are inexperienced with repairs and need a serious opinion - then getting a cut-rate unlicensed inspector who'll show up and pick on your kitchen GFCI receptacles is probably a waste of even small amount of money. If you are an experienced hands-on investor who has seen and already dealt with many foundations, roof replacements, mold remediation and termite problems - you can probably make your own assessment by crawling under the house, climbing into the attic and on top of the roof. But if you're completely green, it may be a better idea to save $400 on a cut-rate inspector, and instead pay for 2-3 separate but detailed opinions form a licensed foundation expert, roofing contractor and perhaps a plumber or an electrician. Or a general contractor, who comes highly recommended, has done many gut projects and has been known to spot those things

Either way, you seem to have your original question well answered by your own experience - the best teacher of all (:

This has been a great case-study to read on how to at least try and think outside the box

I completely agree, I was just speaking somewhat metaphorically and with a tad of irony (if i may), trying to explain the difference between private and hard money

Your picture is already flipped - so you're off to a good start!

Try here: http://www.biggerpockets.com/files/category/contracts

You can download 3 things a week with basic account

Also, at the very least - read this entire thread before you start: http://www.biggerpockets.com/forums/311/topics/46397-proper-contract-assignment-technique

@Yolanda Smith

Private lenders are people YOU know - your family, friends, co-workers, and friends of friends at best. They are people in your network, with money to lend, who know you personally and whom you can approach through a relationship built on years of trust and familiarity.

If Jason were to "recommend" you his private lenders, who don't know you - they would at best turn into HML, if they chose to do business with you at all

What you're asking is a bit of an oxymoron :)

However, if both you and Jason hang out on Bigger Pockets until you both contribute over 10,000 meaningful posts, and say meet at a local REI club, and become friends - then he may turn into your private money lender source