All Forum Posts by: Derrick R.

I am looking at placing an offer on an auction.com listed REO. My strategy for financing is to use on-demand funds from a loan management account that is backed by my investment portfolio.

While my financing is technically a loan, being that I have the money in an account and am able to cut a check immediately, would I still be able to purchase a "cash-only" foreclosure?

I fly the MC-J. If you're wanting AC/MCs, you should probably get comfortable with the idea of going to Cannon., especially if you're going to stay in past your commitment.

As far as the market out here, it seems artificially inflated for the amount of home you get...similar or larger homes can be bought in parts of FL for cheaper prices. Given that, the market dictates the prices and as long as people need a place to live around here the prices are probably not going to drop significantly.

We were going to look at a place to flip here but my realtor tells me that the rehab projects sell at a higher price. Of course this is just deals from the MLS . As far as rentals go, I personally wouldn't buy a rental here just because the place mainly depends on Cannon and if it gets shut down then you wouldn't have many options

Welcome Blake. I'm an AF pilot and I actually went trough PCola when they still offered that for pilots. I love Pensacola! I've also lived in Destin for quite a while when I was at Hurlburt and I plan to get back down that way in the future.

I'd say get involved with an REIA clubs down that way as soon as possible just in case you get sent somewhere like Cannon where they are not available! I'm tryin to learn as well and hope to have my first deal under my belt within the next year. Good luck and let me know if you have any questions with life in the AF after training!

Thanks @Mark Brian

The appraisal is a few years old so we're going to talk with a few more realtors and see where we go from there. Also, would a realtor's CMA be the same as getting an appraisal?

My wife and I are trying to sell a home in New Washington, Indiana, near Louisville, Kentucky. We're in the process of talking with agents right now to find the best fit. I posted this topic on one agent a few weeks ago:

http://www.biggerpockets.com/forums/21/topics/129173-is-this-agent-commission-ok-normal

As for the background on the property, it is a 2010 built 2,000 sqft two story 3/2.5/2 with the bedrooms being on the second floor. There is also a game room/open area between the three bedrooms. It sits on 1/2 an acre. It's about 40 minutes from downtown Louisville. It has been appraised at $163k

We've just talked to three realtors with the first being the 8% commission realtor in the referenced BP post. One of the other realtors suggested a list price of $145k and to come down if needed. The last suggested we list for $130k which just seems crazy to me. Being that the property is in a rural area, there aren't many comps. the realtor that suggested $130k had a 1955 built home as one of the comps.

So, what is the best way to comp a new and nice property when there aren't many similar properties in the area? Obviously I want to be realistic on the sales price but I do not want to settle for a $30k+ discount on the home price when reliable comps cannot be found. Thanks!

First of all, I am in no way an expert at this, so please call me out if this sounds ridiculous! I'm looking for info on the wisdom (or stupidity!) of borrowing against a brokerage account for RE investments. Basically, my brokerage firm allows a customer to borrow against their current assets for a variety of uses, including real estate purchases.

My thoughts were that it could be very useful for making cash offers. Once approved by my brokerage firm, the funds are easily accessible, therefore a cash offer could be made on certain properties. After the purchase, I'm thinking a transition could be made to a traditional 80/20 LTV Mortgage then rinse/repeat for the next property.

Now, I can see the negative aspects of this in that a bad RE deal could really hurt my current investments. I am sure there may be some other negative aspects that I am overlooking as well...that's why I'm reaching out to YOU BP community!

Originally posted by @Shawn Holsapple:

Yes, that's on the high side. We see 6%-7% as an average and it's always negotiable. With that said, however, if it's too low - the selling agents won't show it.

I personally like to setup a lower rate 6% or under and then have the listing agent state a $1000-$1500 selling agent bonus if closed by xxxx date. This seems to motivate the selling agents to show your property ASAP.

Have you thought about keeping it for cash flow? I'd recommend a lease option.

We talked about this but decided it might not be best being that we will be living all over the place (I'm in the Air Force). I do eventually want to get into rentals of some type, but for this property we want to go ahead and collect the equity we have in it.

Thanks to everyone else for the replies! It's much appreciated!

Right around $170K

Here's the deal: I just got married and my wife owns a house in Southern Indiana, right across the river from Louisville. We are going to sell the house but she will be moving in with me soon and will no be present for us to do a FSBO. Friends of ours recommended an agent to us who is supposed to be very good. The problem is the agent charges 8%. He said that he will take care of general care (lawn/cleanliness) around the house without viva thing extra. He told me that the average commission is 7% split between the listing/buying agent. If this agent has a good reputation and can sell this property fast, is the 8% worth it? Thanks!

@Troy Fisher that answers my question! Thanks!

What type of COC do you generally look for in a fourplex?