All Forum Posts by: Matt DuSold

Kobus, welcome!! I saw you are from palatine so I had to say welcome! I actually grew up right next to Fremd. Soak in everything on the forum you will learn tons. Good luck with building your business!

Thanks again for all the great depots guys. I still am looking into this one more and talking with people about my finances.

I am also looking at a triplex that is priced at 80. Total rents are 1500 a month. This triplex is much nicer and in a better area and also has owner financing which is very appealing in my situation. We will see where it goes!

Wow, thanks for all the replies! To address some of the questions and an update. The property was actually put under contract for a while and fell out earlier this month. The list price is the accepted price by the lenders. So this could mean the possible buyer prior to was weary or something fell through.

As far as my situation, I have never had a loan so what I did the other day was take out a loan against my own money just to start paying it back and build credit. I have two credit cards but have never owed any money on them. As far as debt to income ration, I have a full time job and am living rent free currently and have no other debt to pay off. I do have money for a 20% down payment and possible repairs as well.

This is also why I have been looking for owner financing possibilities, which I have found but the deals are not quite as good.

Hey Everyone,

I have been sitting around for WAY too long waiting to get into the game and decided that multi family properties that give me cashflow right now are a solid bet. I stumbled across a 6 unit property it is 2 triplexes but they are selling them together. It is a short sale so I'm assuming thats why it is such a great deal but we will see.

Cost is 82,700
Each unit is rented out for $450 a month right now.

There are a few problems, it says drive by only and I have no credit. As far as the drive by, I have a right once in the process of being serious to check out the units and talk to the tennants and obviously get an inspection done correct?

As far as my credit issue, I have "perfect" credit but the problem is I have never carried a loan. I have a pretty good amount of cash and my DTI is very high because I don't have any debt.

My main concern though is will the agent let you go talk to the tennants and check the place out. The deal numbers wise works but I will not buy this place blind. It isn't a great area but it isn't a war zone either.

Thanks for your help!

I would like to know is what are the most important things when making an REO offer?

Just to throw it out there. The REO that actually has me interested is one that has been on the market for a long while. It is for sure a junker and I am expecting a big rehab but I have the numbers worked out and know my max offer.

I am going to offer cash for the house and I have enough cash for the rehab as well so that isn't really a worry.

What I am worried about is that, like I said, its a junker. Its been
on the market a while and I am worried maybe something serious is wrong with the house like an addition that isn't in code/permitted or something along those lines. I did notice the air conditioning vents were all covered up as well so maybe this is a problem I'm not too sure. Would it still be smart to just offer cash with no contingencies for a lowest of the low? I know if
I can get it at the price I want that I can take care of worst case
scenarios with the cost of rehab to still turn a worthwhile profit.

So I guess all in all, is cash and no contingencies worth it to the
point even if you could have extra repair costs and serious issues to take care of? It appears as if other offers have fallen through with the listing history which I'm worried about something major turning up. The good news is that there aren't any water stains in the ceiling or walls, so I'm not sure what scared the others off, other than a complete gutting/updating of the entire house. Perhaps the cat urin smell... :)

This is why I am curious to the most important things to know about making a successful REO offer as I want to obtain this house for roughly half or less of the latest price change by the bank.

Any thoughts are greatly appreciated...

Steve, or anyone else, does this mean if you buy an REO cash you can flip it right away? It sounds obvious and dumb but I would hate to be under the impression that you can when you in fact can't.

I think I was pretty clear but for instance,

Buy REO for 75K cash
Sell your property (even same day?) for 100K

There isn't seasoning on this then is there?

Thanks guys!

Awesome, Thanks for the responses guys! It sounds like the B-C side is what is giving a lot of people problems.

I know this idea may be out there but I am just curious if anyone has tried it. Can you do somewhat of a fix and flip to the short sale you are working. If you are able to get the property at enough of a discount and then buy the property FHA and put some money into it and sell after your 90 days? I know this could get dangerous holding on to the property but I figure if you can get it at a big enough discount and still sell at a discount it is a possibility.

I know there are some rules out there but didn't know if that is a strategy that a lot of people worked? I am just trying to figure out what's hot right now I guess. Its crazy you get away from the game for a little while and everything changes. I think I learned my lesson with that...

Thanks guys!

So I think I have some of the process down but feel lost still. It might be because I feel it should be more complicated than it is.

Get lead then work with the owner of the house. Get all the necessary paper work to make the process move forward. I pretty much know the paper work and its mapped out in “9 keys to short sale success†(I think). I know this sounds stupid but why do you negotiate a price with the homeowner I thought you only negotiated with then bank?

After all that, you get in contact with the bank and start the process with them. Make sure to give them low comps, and a long list of necessary repairs to “de-value†the house. I have seen in other posts you start your offer at somewhere around 50% FMV, is this correct? They will do their BPO and come up with their price and you try to negotiate as low as possible.

After that comes through you have X amount of days (is there a typical amount, like 30?) to find a buyer. You get with a title company, get transaction funding and get your cash buyer lined up and you finish the deal.

Is this it? Am I just making it harder than it is? How often are you able to get short sales under say 60-65 ARV (minus repairs) in order to make enough money off of them?

As you can see I have some spots I’m not too clear on. If you are interested in short sales in Arizona I would be more then willing to find a few deals for a fee and for you to teach me the process.

Thanks in advance!

This is awesome! Thanks Steve!

Its the best place to learn. I dont know how big Eugene is or how many investors are there, but if it has a REI club go there see if you can find a mentor. If you are under a person who is doing what you want to do you should be good to go by the time your out.

Whoever the big 10 sends will be awful as well so that should be a big win. Make the school millions... the big 10 is just BAD.