All Forum Posts by: Christy Glenn

Thanks to all!

Hello, Thanks to all!

Hello BP Members, 

Any advice is welcomed before we become landlords. 

Thanks!

Christy Glenn

Thanks for everyone's replies. Our approach at this point is repairing and reselling because we need to build more capital. We have the funds for down payments or even pay cash for homes but to not a very large extent. Our goal is to build enough capital to be able to hold. At this point we can't build enough funds to have the money for down payments on many properties. So we fix and flip for that return. If we where holding at this point, we would have to put that 20% or more down and only receive the ROI, if we are lucky, which would only be in our market, a few hundred dollars every month versus thousands on a flip. However, we do understand that holding is a much better place to be. Our company does whatever the market dictates. We wanted other opinions on our approach. We hear investors talk all the time about their properties ROI every month or yearly basis. However, the only problem with that is yes, the ROI every month may be great but to purchase the home they still had to put some % down and they are without that money and it may take years to recover those funds. I understand that they will own the property for years and build ROI and then resell but they still had to recover from spending those funds in the beginning. That is the problem We have with holding at point. We don't have a problem with holding we just can't see us holding at this point. I hope all of this makes sense. Please give more insight if I am missing the big picture or just missing something in general. Thanks!

Hello, This is a great discussion that I needed to hear. My company wants to buy Pre-Foreclosures and we have been hitting brick walls with direct mail. It was stated to purchase subject to in the case that the owner has 0 equity. That only applies to properties that leaves room for the 70% rule, right? For example, I have a property my company has watched for some time, it's been in Pre-Foreclosure for some time. I sent directmail pieces to the owner and they finally replied to one of those. I have spoken with the owner several times and he seems clueless to the whole pre-foreclosure/short sale process. I really didn't want to go through a short sale or should I call it "long" sale, therefore, I would love to find another way to purchase. The only problem is is I can't get this guy to give me a for sure payoff amount and obviously you can look at public record and see what the unpaid balance is. And if it's anywhere close to that balance they owe everything that the property is worth so I don't believe that property is buyable at this point. I really don't know what else to do. I want to be able to have an agent to let me know before the property is listed and comes up on a foreclosure sale. However, that's dreaming.....

Hello, Ryan, Welcome to BP.....much information to learn from here. I live in Tennessee too, north of Memphis. I hope to do business with you and best of luck! Also, congrats on your educational accomplishments and your decision to invest in Real Estate.

Originally posted by @Account Closed:

If you have the phone number of the owner call, him and let him know you are interested in buying the property. If the pre-foreclosure already started you will need to cash out the lender.

Joe Gore

Hello,

What do you mean, "Cash out the lender"? Do you mean bring the cash to the table? I am working a Pre-Foreclosure deal right now and I am clueless. I know the homeowner has the right to sell until the transfer of title and the bank sells the property or auction. This particular property hasn't been auctioned. The lender can't take offers until it turns into a REO. The homeowner can sell and if it's less than what they owe, the lender has to authorize. Any insight would be great!

Thanks,

Christy

Originally posted by @Ned Carey:

@Christy Glenn Pre-foreclosure and post foreclosure properties often sit for a very long time. Often it is the court process which is slow but also banks can be very slow too. Someone here called them Zombie properties and I think that is a great name.

It is possible to work a deal here if the foreclosure is not final. You can offer to buy from the original owner, then work a a short sale with the bank. This can be a pain but can lead to very good deals. Keep in mind every vacant house is not necessarily a foreclosure. Tracking down owners of vacant houses is one of my favorite strategies.

The other option is wait for it to come on the REO market. This can be a long time and in fact sometimes the banks never take them back. If they do sometimes they never put them on the market. Often these properties get sold off for taxes. So the properties you found may not ever come back on the market as bank listed property.

I wasn't sure exactly what you were asking but I hope this helps.

Thanks, Ned!

Your reply was spot on! The short sale/s is exactly what I was thinking. There is so much competition in my market, therefore, if I wait until the property is available REO, I believe it is already sold. I am just trying to beat everyone to the punch. I have worked hard on my direct mail campaign, hopefully I will get somewhere there. I hate bandit signs but I believe that is my next step!

I am also in the process of trying to find a broker to affiliate with because I passed my exam at the end of MAY, therefore, I may need to double think my actions and plans because of agent standards....not sure there.

Thanks for the reply.....Have a great day!

Christy

Hello, all, I have been watching some properties going into pre-foreclosure in my areas of interest. Some have a auction date set and some have already passed the auction date. They are just sitting there. Am I missing something? I'm just wondering how on the world I can purchase or acquire these properties at this process before others come running in or they get put on the market.....well, they will eventually end up on market. My company is fairly new to real estate investing, therefore, we are not familiar with the process. I do realize that it does take some time after auction for the home to come up for sale. Any words of insight or suggestions? One thing that may help or hinder is I just passed my EXAM but have to find a investor friendly broker. Thanks!

I agree with everyone. I just lost a house and I put in a Full price offer. I found out that I was beat out over $8,000 above listing price. It really depends on the property. The banks really price these homes to create bidding wars! Best of luck!