All Forum Posts by: David Weis

And that's why I am a member of Bigger Pockets! Great responses folks.

I'm sorry Jon, I should have been more specific. I have been investing for awhile now and know how to determine ARV. I take ARV and multiply by .65 then subtract my rehab costs. That is my highest offer on a house.

The reason I mentioned "starting point" was because this house is listed by HUD for $78K which is just a bit higher than what I would offer but still within the ballpark of my ARV times .65 minus rehab costs. So I feel comfortable now with my offer.

On the other hand, there is another house that the bank bought for $153K and Fannie Mae got a Certificate of Title for $100. The ARV on that house is ~$160K so the bank way overpaid and my bid formula would be way under what the bank would probably look at. It also explains now why the bank is willing to sit for so long now on a crappy house.

I was just always curious why I saw a warranty deed issued at auction for a higher amount suddenly followed by a $100 Certificate of Tile to HUD or Fannie Mae.

I don't know about the market in other areas, but the Tampa Bay market is extremely difficult now to find houses. So I am trying to educate myself as much as possible.

Thanks Jon. That's pretty much what I thought. The reason I was asking is because I am trying to get an idea of a good offer price. Since I know that HUD / SunTrust paid $72K at auction, that gives me a good starting point.

Excuse me if this is not the right forum.

I am in Tampa, Florida. I see a house that SunTrust Mortgage bought at auction in August 2013 for $72,100. The property appraiser's website shows a Certificate of Title issued. It then shows a Warranty Deed for $100 for HUD in September 2013 but no activity is listed for the house in September on the foreclosure website. The house is now listed on the HUD website for $89K. I see this also with Fannie Mae at times. A bank bids at auction for $x amount and then Fannie Mae gets a warranty deed soon after that for $100 and lists the property on their website.

How does this work? Do HUD and Fannie Mae buy these properties? Do the banks still own them and HUD / Fannie Mae are underwriting them?

Christopher - in QB go to Edit / Preferences. On the left, click on Accounting. Then on the right click on the tab that says Company Preferences. Make sure "Use class tracking for transactions" is checked. That will set up Class tracking for you.

Then whenever you have an expenditure or income, you can edit the transaction. When you edit the transaction, the column on the far right says Class. From the drop down menu, just select the correct property (you may have to add a name). That allows you to do a P&L for a particular property. Like Steve Babiak, I use the property address as the class.

I am a rehabber and use QuickBooks Pro 2013. I list all my rehab houses by "Class" so make sure you use that.

I will tell you here in the Tampa Bay area that Homepath lists their homes near market value and they do not negotiate, or they rarely do. I guess most of that is the fact that Wall Street is willing to pay top dollar for houses here.

Kingdom Man by Tony Evans

Karen - I have the hard money loan and then 8 additional separate notes. These are all people I know and had a prior relationship with. What happened was they wanted to invest with me but I had no other property at the time with which to secure their investment.

This is a very unusual situation and by no means is the norm for my business.

I have a house with 1 hard money loan and 8 private investors. I know this seems like a lot but the private investors invested very low amounts of money ($5K - $15K). The house was appraised at $310K recently, I have had it for a year and I am looking to get $268K out of it to pay my private investors and hard money back. That's 86% LTV so it may not work.

Alternatively, I would like to get $147K to pay back by private money and keep the hard money loan until the house sells.

Any advice?