All Forum Posts by: Dick Green

Hi Rhonda,

Welcome to the site! Conroe is a good place to invest.

Have not been on the site in a bit. I plan to stop by more often and gain from the wealth of knowledge here at the site. Going to become more involved with commercial transactions.

Bandit signs, "I Buy Houses, Cash money, Any Condition, Call Now!"

Here's a thought.....I've been thinking about infiltrating one of these companies that winterize homes. Many times, they, go out to homes prior to the lender actually foreclosing and try to gain possession of the home.

I was at a home today where they had placed one of their tags on the door stating that if they were not contacted within so many day, that they were going to inform the lender that the home was vacant.

I've only done a few.......here's what I've noticed.

Much is negoitable. Many times the guidelines are the same as traditional transactions except: seller contributions (none), home warranties (none), repairs (none). They will usually allow 3% towards buyers closing costs, and pay regular real estate commissions with co-operating brokers involved. They may try to reduce commission on intra - office transaction.

Most lenders will pay delinquent property taxes but will not pay delinquent HOA dues.

If I were buying, I would start by disputing the lender BPO. A BPO is just a cheap desktop review of the property. Someone more knowledgeable with the subject property and the area can generally present a convincing case either positive or negative. You can usually get the numbers to say anything you want them to say. Start by getting them to say that the home is worth less. Much less. Make them fight to prove their price. Especially if there is no buying frenzy on the transaction.

Make the value of the home depreciate right before their eyes. Turn in repair estimates with your offer. They need to see the property as a hot potatoe. Sometimes with these lenders it seems like your shooting at a moving target. Make the target move in your direction.

Never show them you have more money than what's needed for the transaction. You know the song, "know when to hold dem, know when to fold dem, know when to walk away, know when to run...LOL."

Try not to over qualify for lending if financing.
Good Luck!

Great Article Rich! Thanks for posting!

Maybe look at the transaction from a different angle. Instead of a flip for a quick profit. If the property is free and clear other than newly found lien, tell the current owner's that there's no profit, give them a few bucks to walk away from it. Make it income property with the lien still attached. Would it make a profitable rental?

Fight the lien battle later......much later. It's usually not the best time to negotiate on a lien after they discover you're trying to transact a sale. If you feel compelled to negotiate on the lien, the best starting position (depending on the type of lien), is the statement, "I'm thinking about filing bankruptcy and was wondering if it would be better to settle with you rather than filing."......lol.

That said, might be better to catch another fish. Good Luck!

Texas market is still doing well. Try www.publicans.com

One man's trash is another man's treasure.

In my opinion, banks are still holding on to some toxic assets. They're also at the same time streamlining and tweeking their foreclosure, short sale and mitigation processes. They seem to be waiting for all the hoopla and the witch hunt against predatory lending to fade away. When it does, I believe they are going to rip off the band aids and cause one of the greatest opportunities for cash investors since the mid 80's.

Starting to see some daylight!

My area has taken between a 5 - 9% drop in value based on 2011 assessment. The Houston, Tx. market (in my opinion), is positioned to be one of the first markets to rebound.

My view is that it takes three main ingredients for a vital market: Plenty of inventory, qualified buyers, and access to cash. There appears to be a growing migration to Houston and it's surrounding areas attracting a wide range of mattress money clients. Also, owners are obtaining better rates of return on low risk owner financed transactions than available in other instruments.
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