All Forum Posts by: Elizabeth O.

Late responder as well...

@Ryan Harris 

I hope everything is going well.    Please add me to your list as well.  Currently looking in Henrico/Lakeside for single family deals.

@Andre St.George 

I'd love to hear of anything you find as well.  I've done a couple deals in the Virginia Beach area and am always keeping an eye on the area.

@Mayank S. 

I sent out some faxes with my basic criteria and picked up the phone and started to find realtors who would be a good fit and who did deals with investors.  I must have talked with about 8.  I found two I liked.  The one I didn't  pick may have had more investor knowledge and I keep his card.  

My property management has been exceptional so far.  In fact, they do a lot of business is Richmond and thats why I am now looking there.  I pay 10% for property management.

I started in Va beach because I have some family there and my husband travels there for work. I felt somewhat familiar with the area. First property was a Short Sale and the second was a HUD deal.

I did both deal with financing through SunTrust. 10% down on first and 20% down on second.  My lender is very helpful.  Closed both times up here.  

Its hard to jump in but once you do its a good feeling.

I'm in northern va and had to get out to find properties that fit my budget and cash flow. I've invested in Virginia Beach and have recently started looking into Richmond. I factor in property management so honestly I only really go down to property hunt. Once I closed I haven't really had to go down there. Knock on wood everything is going smoothly. I'm still new to investing. Good luck to you.

@Ryan Jackson 

Welcome Ryan, 

Thank you for your service.   

I own two rental properties in va beach and have had good luck so far with my property management company.  If you ever go that route again and want to keep a name on hand just let me know.  

Take care

Elizabeth

Thanks for the replies. My realtor did submit a contract to the listing agent. It's the listing agent who won't submit the offer to the bank. I guess I will just wait it out while I look for other deals.

There is a SFH that I put a low offer on 2 months ago that the realtor of the house never submitted. Here is a little background: Short sale that was listed at 99k. Needs 20k work. Listed as a 3 bedroom but it's actually a two bedroom with a converted garage. We gave the realtor a low offer and she said she was waiting on the appraisal and that she would get back to us. Appraisal comes back at 119. At this point she says she will try to ask the bank for another appraisal or to lower the price accounting for only 2 bedrooms. The house is still listed at 99k although realtor says she is changing the listing to 118. She told my realtor the bank won't take less than 118 and she doesn't want to waste time. So this house has been listed at 99k for two months with no other offer but mine and mine wasn't even submitted. I was wondering if there is anything else I can do (besides offering 118) to get this house? Thanks so much bigger pockets !!

@Greg H. 

Yes I did address this with my realtor.  She did not offer up anything.  She just kinda told me that "at least we now know and  things will go smoothly on the next deal."   I wasnt really expecting her to give me 1,000 but I was expecing a simple "I screwed up" and i didnt get that. 

After just searching the forums  I know that the 2% concession has been discussed and I now wish I had read those posts but I wanted to give a heads up again so someone doesnt go through what I just went through.

This is my second investment property but first one with HUD. When my realtor submitted my bid to HUD, she put down $3,000 closing cost assistance which is 3% of the purchase price. I now know that the max seller concession on an investor loan is 2% of the purchase price. My Lender caught this and my realtors just told me that we would address it later.

So its coming up on my close and my realtor tells me that if I would like we can add an addendum to change it to 2% and reduce the sale price by $1,000. Either way HUD nets 91K. Well, yes of course I want to do this but, I am now being told that my realtors office manager contacted the asset manager who told her no way and that the only way to do it was to release the contract and put in another offer.

I feel as though this could have been avoided if I had been aware that the max seller concession on an investor loan is 2% of the purchase price.   I'm moving forward anyway but i'm just a little ticked that my realtor didnt know this and that she still gets her $3,000. 

Here is what my bid bummary looked like if you are curious. 

Bid Summary:

3. Agreed purchase price of the property is:$100,000

5. Seller will pay reasonable and customary costs, but not more than actual costs, nor more than paid by a typical Seller in the area, of obtaining financing and/or closing (excluding broker’s commission) in an amount not to exceed.$3,000

6a. Upon sales closing, Seller agrees to pay to the broker a commission (including selling bonus, if offered by seller) of:$3,000

6b. Upon sales closing, Seller agrees to pay to the broad listing broker (if broker identified is not the broad listing broker):$3,000

7.Net amount due to seller: $91,000

8. Purchaser is :Investor

Lesson learned on my part.

@Gerald Harris 

Good questions. 

I am buying and holding.  The property will still cashflow. 

I am putting 20% down.  

Bank will do 75% cash out after 6 month seasoning. 

"Buying a property with no equity" , no one likes to hear that!

Hud asking price 115,000

Purchased at 100K with closing cost assistance

Appraisal today came back at 100K.  Honestly I was expecting around 115K.  I have read its common for the appraiser to come in at or right around your contract price. 

They appraised at a 3 bed 2 bath home.  It has a half bath on the main level that has nothing in it so they didnt count that square footage or even note the halfbath.  They also appraised with no appliances in the kitchen. 

I'm a bit concerned over the appraisal price as I plan to refi and get cash out within 6-12 months.  Not to mention that I feel like I didnt get a good deal soley on the appraisal number.  

Hopefully after we add the bath and finish off the kitchen It will appraise for the amount I wanted 135-145 in 6 months.    There have been sales in the 140 range lately.  Is it true that once 6 months is up the banks will not look at old appraisals?

Am I putting too much thought into the appraisal I just got back?