All Forum Posts by: Cathy Moore

Thanks everyone! So sounds like I'm pretty much SOL unless I have a lot of cash on hand and tons of time to do research 2 days prior for a home that still might not be auctioned off...think i'll try to find another strategy : )

As someone new to REI, I've been quite frustrated with the market here in Denver for those properties that have hit MLS. Everything is a multiple offer situation, I've lost 2 deals so far and the one I actually got accepted fell through. Inventory is so tight right now that I've considered looking into foreclosure opportunities. I've read up a lot on the information from the public trustee website and somewhat understand the process, but I'm confused on a couple of things.

First, it looks like a ton of properties get scheduled for auction on a certain date then only 10% or less of those actually get auctioned off that date. I'm guessing the attorney delays things as they're working things out with the owner but is there any sort of final deadline they have to go to auction here? I want to keep my eye on a few properties so I know when they're going to auction. Should I call the attorney office handling the process for the bank?

Second, I realize this is a cash only method and you have to bring at least the opening amount to the auction which can be a lot of $$$$. What do people do for this who don't have that much cash sitting in the bank? I would assume private lenders or hard money, but I don't see how that's possible when you only have 2 days before you know what properties are going to auction. Is this really just a space people with a ton of cash can invest in?

Thanks for any help you can provide!!!

Thanks for all the helpful advice! Ben, I am open to small multi family but they are VERY hard to find at a reasonable price around here. I did hear the lot next door to this one has 2 multifamily buildings going on the market soon for $375 and $415 each (4 units a piece) and I bet they need a lot of work...I'm just hesitant for my first deal to go to the scarier neighborhoods, which is where you can still find those under $100K properties that need a lot of work which is why I was considering this one in a very established neighborhood

I would be able to afford the payment for several months with my savings if that were to happen. The house will go above list b/c in this location the property will prob appraise close to $250. The biggest issues for me are the flat roof and no street access. The house does have access to an alley where the driveway/garage are. I would imagine during inspection it may reveal the roof needs replacement and I would require a replacement credit from the seller or price reduction to cover costs of that to cover my butt. I'm not emotionally attached to the place, I just think for the area it's in it's a bargain even at $219.

Okay I found a property that fits the criteria of my REI plan. It's in a very desirable neighborhood that gets great rental income. For my first investment property I didn't want to buy super cheap in a ghetto area, so I knew I'd have to be paying more up front than it sounds most people do on this site but think long term will pay off. It is a 3br/2ba SFH that was listed under $200K b/c the listing agent knew it would generate a ton of interest quickly. They are only taking offers through weekend. My agent and I both agreed that we need to go in at $222,500 w/$4K seller concessions. Houses in that area (although with larger lots) are going for $300K plus. This is also an unusual lot in that it is land locked with no street access, which brings value down from others. I posted a fake ad on Craigslist to see if I'd get response at $1700/mth and had about 20 responses within a couple hours. I think I could raise to $1800 or more and easily still find good renter. I've done a spreadsheet including all estimated costs and out of pocket expenses and look like I could cash flow around $300/mth which I figure good for first investment and I know place will hold value. What do you guys think? Does this make sense? Anything I need to be careful of here? Owner has lived several years and it is in very good condition. Only thing I will be sure to check out thoroughly is roof as it is a flat roof and they don't know how old. Any advice y'all can give would be much appreciated!!!!

Thanks James! I called them and they mentioned the in person class that runs a little over $1K. That seems pretty steep, but I guess it's comparable to Kaplan and the others. He didn't mention the online course, so I'll need to follow up and see about that one.

Well I've decided my first step in becoming a REI is going to be taking classes to get my RE license. I've been thinking about doing so for some time now and no time like the present to jump start 2013. Can anyone in Colorado/Denver area recommend some good/reputable schools? The only two i've heard of are Kaplan and the Keller Williams one.

This is all great advice, thanks again! Mike, thanks for head's up on Jon's wealth of knowledge. Jon, I live in NW Denver right down the road from you if I might be able to pick your brain sometime as I get started in all of this. I think you're right in that I do have higher expectations on rent than I should. I left town for a year for work and rented out my place at $1650, which was way more than I thought I could get for it but it is in a hot neighborhood, in good shape, and good amenities.

Thanks for all the advice. Man I wish the property were only $40K, it is actually just over $200K and realtor who listed said their agency appraised it at around $250K as is. I would plan to move in after doing the work and rent out or sell my current place (which is very similar to the place I'd be buying but I'd rather use the proceeds to buy better investment properties. Regardless, this would be my first go at doing something like this and I want to make sure I go at it the right way. Grant, I think you're right, this will go well above list right now and I'm trying to run numbers on if it makes sense and can get me a good return if held 5-7 years.

Hi there. I've been curious/interested in REI for some time now and I think the time is right. I happened upon the HUD website the other day and narrowed down the search to my neighborhood. I found a deal for a place in a great location that is listed at $30-40K under what it probably should have been appraised at as is. It will require about $20-40K worth of work if bought for me to move in or rent. Now I need to figure out what I should bid. Does anyone have any good tips/formulas for this, as I know it will be a hot property and a lot of people will probably make good bids.