All Forum Posts by: Curtis H.

Hello All,

I'm ready to do a direct mailing to find a property for me to have as Owner Occupant. So my situation is that the homes in my area are overpriced (Burbank) but they are selling due to low inventory.

I have about $400K to spend, they cost about $500K-$550K ARV in the zip code I want. HOWEVER, it is a heavily elder community so there are a lot of homes probably owned by inherited family members or the owners may need to move into a nursing home.

Who do you think I should be targeting, and does putting that I want the home for myself in the letter or postcard make a difference? I need to make a move in the next week, as the prices sure as heck aint going down...

I'll probably use Michael Quarles Yellowletters company and get the list and have him mail. I only need one, but I need a surefire deal or I may have to start looking elsewhere to live and I REALLY don't want to have to do that. Schools are great here.

I'm thinking...

Absentee Owners + 3-5 bedrooms + 1200 Sq ft min + minimum 7 years as the owner

and then...

Over a certain age (I don't know 65?) + 20% equity or better + same home criteria as above + anything else you know that I don't.

I never thought of FSBO, but that could be a solid idea. I only need ONE HOUSE. And to be honest, if I can get in with no money in, it doesn't have to be a smoking deal either. The key for me is to get in without the ridiculous down payment usually required. I have a rental in Texas so this would be a second residence in a sense and may require more down.

And I just can't see myself doing that when there is a chance the home is worth less later on. Unlikely I know but it just happened to a lot of people and many of them haven't made a payment in 2-3 years. I would feel like a fool putting $50K down when my new neighbors would have just POCKETED $50K not making mortgage payments. Makes it hard to even think about conventional buying.

Hello all,

Ok I have done enough research and know I want to buy the home to live in Sub2. I also went to a local REI club and spoke to the guy who runs it and he also said he bought his home the same way, so I am thinking the right way.

So my question is, what is the best way to go about it if I do NOT have the time to find the deal myself? Just ask local investors and let them flip it to me? I was even told that a RE Agent knowledgeable in investing could be a good help as well in finding deals.

I will get into investing later as I was doing that in Austin 7 years ago before I had to move here in Socal, but right now I'm trying to stop paying $24K a year in rent when I could be in a home that's mine. Once my wife pointed out to me that we have been here almost 4 years, I almost threw up. $100K in AFTER TAX money gone for what...I know better than this.

Thanks,
Curtis

Very useful info Ed. All of which I will follow your advice.

I'm thinking conventional is the way to go if I can stomach the larger down payment.

Thanks

Thanks Mitch!

That help put it in perspective. The benefits to FHA aren't all that much compared to conventional it seems. However their rates seem to be better. I'm getting 4.25% for conventional, vs 3.9% on FHA. That's a lot on a $300K home over 30 years.

Now, anyone got referrals to good lenders? This is the part that scares the crap outta me. This is where if you are not careful you run into the crooks of all crooks. I know there are good ones out there.

One thing to add.

Is a conventional loan or FHA loan best? I don't want to put 10-20% down payment, and if that's the case isn't FHA the only way to go? Does FHA make you pay PMI like conventional loans?

Thanks!

Hello all,

I'm creatively looking for a place, but this one is to live in.

I am in Southern CA, 760 credit or above, and looking for a reputable lender to get a prequal from and then use.

Am I looking for deals to take Sub2 or banks wanting to dump inventory by year's end? You bet. But working with a realtor for fixer uppers may also net me a good deal as well. I'm looking at anything with a 20-25% equity already there, that needs cosmetic work.

Am I on the right path?

Also please no solicitations like "give me a call, I'll help you out!", just referrals.

I'm hearing the rates are under 4% for great credit so the timing seems good.

Thanks!

Curtis

Thanks Jeff,

That sounds like sound advice. I don't have the cash to build my own home, so finding wholesalers may be the best option. I'd rather lose $10-15K and let them do the work for me. I can live with that.

I just feel if an agent gets involved it will push the price too high for me to consider it a "deal". I also have time on my side. I'm renting now and currently am in no rush to move besides hating paying $25K a year in rent.

I feel even if I find a potential deal, I don't have the chops to get the place under contract. I just have been inactive for too long and have no clue what I'm doing and I can admit that. California is no Texas when it comes to investing. Things are different, people have more to lose and families also tend to get very involved in stopping a sale.

Curtis

Thanks Angelo!

Well funny enough, I do have some time. I work from home and have a very flexible schedule, although I still need to work obviously. But I can surely take a few hours a week and do what I need to do to find a deal.

My fear is once it gets to the "open house" stage, that's not the deal I'm looking for. I don't want a house that is all prettied up already, as that means it's too late and I can't compete with the offers they will get. I need to find the worst house on a good street type deal. I have the feeling the only way to find that is pounding the pavement.

Am I wrong?

Curtis

Hello all,

I posted last night and realized it was all over the place and narrowed my possible responses down by giving a geographical region.

What I should have asked is this...

What is the best way for me to go about finding a home to LIVE IN, but creatively?

I used to invest, but had to move to Southern CA and life took a different course (for the better). I have a rental property in TX (where I used to live) but nothing else.

Should I look for Notice of Defaults in my area? Call a realtor who deals with investors to find me pre-foreclosures or fixer uppers?

I just know I do NOT want to pay market value for a home. Not with all the investing knowledge I had accumulated (and now lost) over the years. That just seems like the worst way to go.

Any advice would be helpful.

Thanks,
Curtis