All Forum Posts by: Mark Wallis

So you're saying FHA and appraisers won't take into consideration that a family was helped out of a difficult situation (lack of cash) in exchange for a quick no hassle sale?

This is a small community of identical units. I would still be selling the property on the low side of comps. Guess I need to market to retired couples with cash.

Thanks everyone for your suggestions. We got excited and jumped on this deal before thinking all possible angles. We will close this week. I think Jason's options make the most sense at this point.

Bigger Pockets is a great community...thanks again!

New investors here with simple question. Had a great deal fall into our laps. Family needs to sell Dad's 2/2 condo in gated community fast. He now lives elsewhere with 24 hour care and family needs cash now. They told me for $70K cash with quick close and I can purchase his home. Other units in neighborhood are selling for $110K - $120K. This unit is in great shape and I will spend less than $1K before listing. Question: will we have trouble selling to someone who intends on financing if the transaction is less than 90 days from my initial closing? I've read that as long as we can document the rehab process and show reason for the home being priced over 120% of purchase then all is fine. In our case the before and after pictures and our rehab costs will show almost no difference. Anyone have experience with similar deals?
Mark

Carl,
I suggest you do what we did several months ago. Join your local REIA which is a non-profit group of like minded investors ready and willing help each other to be successful. I looked online and you have one...baltimorereia dot com. (If that got censored just search Baltimore with REIA and it will lead you to their website. They have a general meeting next Thursday.

You guys are right. Today, Tuesday, the Bank responded back saying there are multiple offers and asking for Highest and Best. Following the advice you've given us we upped our cash offer, only asking for home inspection, and a 14 day closing. Hopefully our offer looks attractive and we get this property.

I love this site...you guys offer excellent advice!

thanks
Mark

REO property on market approx 10 days. We see potential and want the house so our offer is cash at full listing price ($69K). Our buyers agent follows all seller agent guidelines and submits offer with 48 deadline. Seller agent responds that our offer was received and forwarded to bank. 2 days after our deadline my agent contacts seller agent who simply shrugs shoulders and says she hasn't heard from the bank. She does offer that there is one other person who is interested in placing offer but hasn't done so yet.
What the heck!?! full price offer...in cash and the bank doesn't accept? This experience makes Probate sales more attractive.

I've attended a few trustee sales at the court house steps and starting to recognize some of the regulars. The people who seem to be bidding on the majority of homes look just a couple steps above homeless. I'm not judging people with this comment...simply wondering who they represent? They have one ear glued to cell phone and appear to be receiving instructions on bidding. I guess I could grow some b@lls and ask them who they work for but let me ask you guys first. Are these people the grunt workers for the big Rehabbers? Do the banks have people at the auction bidding?
Mark

HI Jeff,

I'm just down the road in Tucson. I suggest joining the AZREIA group. That's the way I started a few months ago and have found many experienced investors willing to share ideas and answer questions. They also have some great classes on various real estate investing strategies.
Mark

Is this a typical "good/bad" situation? Good that we can purchase homes for cash easier but bad for those who try to finance the rehab from us?