All Forum Posts by: Arthur J. Encinas

That's a misleading title.....homeowners aren't actually Buying the properties sight unseen, that are simply putting offers in with the standard inspection clauses, finance contingencies, other statutatory "outs" related to disclosures, etc. If their "sight unseen" offer is accepted, then they look at it and evaluate......no real risk.

That's exactly what I was going to say. There is little risk in bidding on a home sight unseen, provided you have an inspection contingency in place. Tie the damn thing up in contract so you know it's yours if you want it, and then figure out if you actually want it (that X day window until your earnest money deposit is due is ideally when you decide). I was rather surprised to see that the OP article author is himself a real estate agent.

Even for people that have seen the home(s) in question, sometimes my answer when asked to the question of "which of these five homes should we buy?" is "write offers on all 5, only X will be accepted, decide between the X homes that you can actually buy at that point." Maybe X = 1, maybe X = 4, but now you aren't worrying about trying to decide if you want something that you can't have anyways because some fool and his money is being easily separated by them over-paying for the property all cash.

Once you have a property under contract, negotiating power shifts a little bit in favor of the buyer. When in doubt, tie it up in contract with an inspection contingency so it's yours if you later decide that you actually want it, let's shift things a little more in favor of buyers in this hot seller's market!

(Note: this is one of those posts where my unfamiliarity with how things work in other states might make all or part of the post irrelevant to you, and similarly other posters will be biased towards some subset of states where the poster has experience. I only know how things work in California. I'm aware that in some states, for example, writing the offer generally comes with an earnest money deposit cashier's check included in the offer, so obviously this strategy may not be as viable in those areas because you don't want 3 or 6 earnest money deposit cashier's checks flying all over the place...)

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Thank you for that insight Greg. You're awesome man! Based on your experience would you put the offer with the listing agent to gain some sort of advantage?

The 5% rule is a good basis to start as well. I'm thinking $45k and then after counter go up to $50k with best and final at $55k which is about 10% of where their listing price is at. (great info on the 10% btw)!

Thank you Sir.

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Originally posted by @Greg Scott:

Arthur:

As you know, one downside of the MLS is that the best deals should already have been picked over by local investors. On the plus side, you can usually get an inspection period which is the critical piece of the puzzle here.

Many REOs have a formula for pricing and accepting offers. (e.g. lower the price 5% every two weeks, only take offers within 10% of asking) I would throw out an offer you think will get accepted with contingency on inspection. Then get a reputable contractor, hopefully one you already have a working relationship with, to give you a quote to make the place perfect. That is when you really run your numbers.

If the deal doesn't box, then make a counter-offer at a lower price and explain why. You don't want a reputation as a low-baller, especially among your Realtor brethren. If the numbers don't work, just walk away, but keep an eye out for later price drops. If the numbers don't work for you, they probably don't work for most investors.

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Hello everyone and thank you in advance for your answers and insight.

I'm looking at a SFR REO property-3/1, 994 sq ft, 9600 lot size. NOD deed was for $98k. It was on market for $70k and now down to $62k. Comps are from $80k-135k (wide range). I havent seen the property or know what rehab would be as Im out of town. ARV would be at about $110-120k.

My question is the following:

I'm thinking of offering $50-55k but I want to make sure it's an attractive offer to the lender. Besides asking for number of offers on property and what damage if any does the house have, what other questions should i be asking. (home has been on MLS for over 60 days.

Also what terms, wording, clauses should I put for example inspection days 7,10,14 days, earnest money, inspections, pay for repairs, split CC, etc.. I'm still looking for an investor either HM or private for 100% financing and avoiding paralysis by analysis so what do put an offer in the next couple of days as this has been on the market for over 60 days.

I'm a real estate agent as well, should i have my co-worker put the offer for me or should i have the listing agent do so, and what is the benefit of doing the latter as I read that it's more practicle.

My exit strategy is to fix and flip and my 2nd E.S would be to rent it out, prevailing rents are about $800-900.

What are your thoughts, advice?

Thank you all.

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Originally posted by @Nick C.:

You'll need to close on it first. Hubzu contracts are not assignable.

Thank you Nick, I assume this is the norm with most auction sites?

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First actual post....

I learned so much from you guys already. Thanks, I've been a RE agent for 10 yrs now and in the mortgage business for about 15 years and I was also a Lic. Financial Advisor for JP Morgan.

However, this is a whole other beast! Might flip it but for now I think I will start by wholesaling property.

I've been checking out auctions sites like Hubzu and I'm interested to know if I won a bid and state 'cash offer' (lender has option to finance)...would I be able to do a wholesale on property as oppossed to rehab? If so, what about the earnest money...and other fees? Has anyone ever accomplished this if even feasible? Does it vary if it's only cash offer or CO and lender having financing option available?

Thank you in advance.

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@Ned Carey, I appreicate the welcome. thank you for that info. It does seem kind of fishy for a coach to lack that knowledge.

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I appreciate the insight based on your experience with them Nichole. I will def. consider it, and may not pay to go to their 3 day seminar when I could gather info with like minded people like you.

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Hello,

Has any one taken the 3 day course $1497.00 with US Tax Lien Association? Is it worth it and is it reputable?

First timer here and first post. I've learned so much from all of you, much obliged for all your wisdom. Much love.

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All Forum Posts by: Arthur J. Encinas

Arthur J. Encinas has started 5 posts and replied 29 times.

Post: 1 in 3 people who bought a home in the last year without seeing i

Post: 1st offer on REO property

Post: 1st offer on REO property

Post: 1st offer on REO property

Post: Has anyone won a bid on Hubzu and wholesaled it?

Post: Has anyone won a bid on Hubzu and wholesaled it?

Post: US Tax Lien Association solid training?

Post: US Tax Lien Association solid training?

Post: US Tax Lien Association solid training?