All Forum Posts by: Anson Young

Originally posted by Scott M.:

Originally posted by Anson Young:

I will agree with this 100%. Start off paying full commission, then once you really start doing a bunch of deals, ask for a discount for bringing him so much.

Hey Anson - I know I am nit picking here but I never ask for a commission cut from a realtor and sometimes I offer to pay more - so even the guys I have worked with for 10 years and have done tons of deals with I never ask for a discount...

Not saying that is the right way for everyone to go - just me.

Understood, I dont offer discounts myself, just saying, if he wants to build rapport, to not mess with the mans wallet! :D

As an agent, I wouldnt even give you the time of day if you werent at least letting me list the property on the back end. You want comps in 15 minutes? You are paying me $100 + the listing on the back end. I'm not starving, and I dont need to answer to you...

Thats my .02 as a Realtor AND Investor. You are providing NO service and are not an asset to that person.

Many banks will reject your offer if the proof of funds dosnt have YOUR name on it, just FYI. The coastal funding letter seems the best way, put in additional provisions you have the right to change your cash source at any time as long as it dosnt effect the net proceeds to seller. That way, when you change from Coastal to transactional funding, it wont raise any red flags.

Originally posted by Stephen McKee:

Its hard to call the agent if you don't know who it is. You will probably have to break in and hope they have a sign in sheet posted for the initial services crew.

Our banks require we put up a sign of who is handling the property, for emergencies, etc. That is our number because we are responsible for the property (emergencies/break ins/ vandalism/etc etc).

Maybe they do it differently in CA?

I would say calling the agent weekly is a better way than a note. Big REO teams will not always personally do the property tasks, and will send out a field inspector. The field inspector wont care less about the note 9 times out of 10.

Originally posted by Jeff And Cheray Warner:

Thanks for the reply Anson. I guess i'll make some calls and see where they send me.

Jeff

Jeff,
Keep us updated!

Originally posted by Stephen McKee:

Try going backwards

Estimated sales price
-
Cost to sell (I use 8%)
-
Repairs (contractor estimate)
-
Cost to purchase (I use 2%)
-
6 months interest (based on total out of pocket)
-
How much money you want to make (I use 25-30%)
=
Max offer price.

Stephen,

That makes sense, the #s for cost to sell and cost to buy seem high, are you padding the # for more safety?

Originally posted by Marion D:

Originally posted by Ivan K.:

stupid question but.. whats BPO stand for?

Broker Price Opinion

My stupid question is what's ARV?

After Repair Value = retail value after repairs are completed. AKA, what the general public will pay for it at the end of the day.

Originally posted by Ivan K.:

stupid question but.. whats BPO stand for?

No stupid questions: BPO is a Broker Price Opinion, used by banks to determine the value on a property (usually REO), or private parties who are purchasing bulk REO to determine a quick value without getting a full appraisal. The methods are similar to appraisal, get 3-6 recent (3 months old) sold comparables and 3-6 recent active comparables, adjust the prices based on condition/location/features/etc and determine an AS IS price and a REPAIRED price. Most accurate valuation you can get without an appraisal. If you do a few hundred of these, you get a really good idea of values and trends.

Originally posted by Josh Green:

anson, eddie brings up an excellent question.... how do you come up with ARV?

Josh, see above: ARV is easy, I'm an agent and have been running accurate comps for years . We did about 450 BPOs last year for our bank clients (REO listings) and keep a very close eye on neighborhoods and trends

Thinking about it, we probabaly did closer to 550 BPOs last year however. For those of you who arent agents, how do you determine ARV for your fixups?