All Forum Posts by: Arthur J. Encinas

Bernard,

I appreciate the info and Links Sir.  

I will check them out. TK

Art

@brent coombs, thanks yeah It wouldn't be any good with the approval.

I've sent the analysis with all records and executive summary to HML and I'm waiting on him to sign off on it before I submit it.

Would the bid proposal with GC contract suffice to make sure rehab is what was quoted? Any other particular form I would need? I had a GC/Engineer go and see property and that is what he told me.  He also quoted me $5k to add a 2nd bathroom as I mentioned it to him.

Here are the pics:

That's great advice for a Shell.  The land value is about $50-55k but there's no lots available and if they are you would need to pay city another $10k for parks and schools and get utilities ready.

What 'll I do is put in offer ($57k) $1k higher than the winning bid now and a large earnest deposit like $25-50% of purchase $25k or so with NO contingencies, except a lender approval contingency as Im still waiting for my hard money lender to sign off on it. I have a dated proof of funds letter but for another house and I may use it on this one and have that contingency in case.  What do you think?  Much appreciated Brent.

@Thomas S.

Thanks Thomas, yeah that's why I'm asking what would be a good way of not being insensitive but I guess you're right-there's really no way of going around it. 

I will just plainly tell the daughter how much she would get from me as an investor which is about $125-135 and also tell her that I could list her home if she decides to take that route but it could possibly be in the market for a few months or she could always rent it and I could refer her to a couple of good managers and go from there.

Death of a neighbor,

My mother's close friend and neighbor died last night.  She was a wonderful person and lived alone but willed it to her children.

As a Financial Advisor and Real Estate agent I want to give guidance and help out and I don't want to seem insensitive asking her daughter what she intends to do with the property but I know it won't take long for other investors to swarm in.

I want to genuinely help her daughter. Her children live out of town and she left her children the property. I want to suggest to her since it's almost F&C, that she has options such as renting it out, selling it on the market or selling it to my parents. She owes $10k on property, $10k-$15k in repairs and ARV is about $220k-$230k.

How would you guys approach the situation?  If she decides to sell immediately and not list it what would be a good offer for them?

Thank you in advance.

@Brent Coombs, hello Brent. The land value is about $40-45k.  This is why $57k or so should be highest and best.

It's zoned R-1, could I subdivide it like that and how would that come about?

Cheers mate.

@wayne brooks thanks man.  With offer of $56,500 ($500 over) highest offer?  I was actually thinking of $10k EM but almost 50% @ $30k would look appealing to bank.

@Account Closed, thx John, yeah I'm thinking of putting a best and last of $500 over that amount with no contingencies.

Hello guys,

I'm putting an offer on a REO that's been completely vandalized. Copper coil ripped apart from walls and even ceiling. All rooms and house is damaged. My GC told me it would be $35k for complete rehab. Build in 1930, he said the only thing that's good is the wood structure and the foundation.

3 BR/1 Bath, 996 sq/ft, lot size 9,600. REO listing is at $63k and it's been on market for 75 days but has a solid offer for $56k with no contingencies.

ARV = $125k-135k-though a home (4/2) 1100 sq ft two blocks away just sold for $170k.

Rehab = $35k-$40k adding 2nd bathroom.

Based on numbers, $60k is cutting it pretty close.

What are some creative terms you would put on offer to stand out to the REO bank? Such as increase earnest money and offer less...offer $500 more than last offer with more earnest money, etc.,

What are you suggestions on your past experience?

Thank you guys.