All Forum Posts by: Chris Garrett

@Andy Mirza and @Brandon Sturgill

Thanks for the additional details!

One piece I’m still confused on then is how you end up with a Fannie Mae foreclosure (like on HomePath) if they are not holding any of these loans.

I understand that the majority of loans in the US are backed by FNMA or FHLMC. What I'm confused about is what dictates who ends up with the property after it's foreclosed upon and becomes an REO. For instance, if the mortgage for a property is backed by FNMA and the property ends up as an REO, does FNMA now have possession of the property, or does it go back to the bank who originated the loan?

I'm looking to buy a house from an upcoming tax foreclosure auction in my county (in Arkansas). The property is in a great neighborhood, but it will definitely need some repairs. I have access to a little cash, but I doubt it will be enough to win the bid on this property. What is the best form of financing that I could arrange in order to get this property at the auction? Would it be possible to find a bank that would give an open line of credit up to a certain point?

I am currently under contract on a house that I found out has a few spots in the crawl space with just screw jacks sitting on dirt. I've received a few bids to fix this. Two contractors bid around $8K to build new columns to replace the screw jacks (long-term solution). One of the contractors bid $1,500 to just replace all of the screw jacks and poor concrete footings under them. All the contractors have good references. Would the screw jacks with concrete footings be a dependable option? If so, how long would a solution like this be good for?

I am new to real estate investing, and I recently decided to take the plunge and offer on my first potential rental property. I was able to get the property under contract for $124,900 (1976 3x2 @ 1,500 SQFT). After all expenses, it should cash flow a little over $200 based on rental comps in the area (around $1,200 per month). There are a few items I expected to fix (appliances, flooring, etc.), but during the inspection it was found that there were screw jacks not on footings under some of the beams. To fix this the right way, I'm getting quotes around $7K. Once all is fixed, I would be in around $35K in order to make $200 per month cash flow. Does this still sound like a good deal? Overall, I'm getting an ROI of around 12% with cash flow and loan pay down (no appreciation included).