All Forum Posts by: Larry Karp

Interest only works very well if you don't plan on holding the property long. It's a cheap way to hold a property while rehabbing and getting it back on the market. Keeps your holding costs down.

Please always be careful who you borrow money from, especially if you meet them on public forums.

http://forums.biggerpockets.com/viewtopic.php?p=5322

Yes it's important to get out there and make offers, BUT it's also important to have a positive presense out there.

First off, have professional looking business cards to hand to everyone you meet. Websites, flyers, newspaper ads all drive the sellers TO you. It's much better to have the business calling you. When you have free time pick out a domain name and at least have it ready for when you have the time to develope it. That way you can put it on your biz cards.

I guess there is no one having any luck with probate? Is it that bad a route that there is no good advice?
Larry

Is anyone actually doing any good going after probate properties?

I've been going to the courthouse and getting the probate files for the past few months. I'm sending letters to the executor or independent administrators and the heirs. I'm offering to discuss the sale of any property they may be dealing with in the estate. I'm sending to estates that list RE of any value.

Does this work for anyone? Is there a better stategy? I'm trying to find my first deal.

A great place for a Chicago investor to start is to join a local REI club. There you will meet everyone from the most new investor to the really usccessful ones. A very good Chicago club is WCRT. They have a main meeting th efirst Thursday of every month in Oak Park. Uaually over 120 investors at this meeting. then they have about 8 sub group meeting all around the area from Buffalo Grove to Orland.

They are a very nice group.

Larry

I'm new to REI and am looking at a couple of different angles. I'm working with a friend partner so we can find a couple of deals to get our feet wet. We are in Illinois. He has proposed the following:

Distressed homeowner is having problems paying mortgage on time. It's pretty much up to date but has been paying late, he needs help and has asked for help. He really wants to stay in the home.

Single Family Home conservative value $220,000.-$230,000.
Mortgage balance about $110,000
Equity in the home about $110,000.

He has had investors who wanted to assume his mortgage and have him move out. Basically giving him nothing but moving money.

My partner wants to have the title signed over to us. Refinance the home for the $220,000 figure. Pull out the equity for our expenses (and profit).

We would allow the homeowner to live in the home for 12 months rent free to help him get back on his feet. No charge to him what so ever. We would then make all mortgage, tax and insurance payments for the year. At the end of the year the previous homeowner has the option to simply move out no strings attached and leave us to sell the house. Or he can get a new loan and regain title to the home. At which point we walk away with him being able to remain in the home albeit at a higher mortgage amount.

We are working with an attorney who says this will work. I would like to hear what others think about it.

Thanks, Larry

I went to a 2 hour short sale class last night. The speaker advised making a first offer of no more than 40% of ARV minus the repair costs. She said after a couple of counters you should be able to get it for 50-60% of full value. The lender would rather have the money now than in a year or two after the foreclosure works through.

Hi All:
I'm brand new at REI. I've read a bunch of books and even attended my first club meeting last week. I am willing to do what it takes to get into this business. I'm working with a couple of local sales agents hoping to find something undervalued, or just getting the experience of looking at building and learning prices. I've contacted two mortgage lenders and I'm waiting to be prequalified.

So, I'm willing to buy and fix up before selling or I can option or assign. Which ever I can get to work.

I'm looking for a little direction if anyone is willing to help or point me in the right direction for a little while. I'm starting out part time with the goal of retiring from the fire dept. in 18 months. So if you are anywhere in the Chicago area I'll travel for the help

Thank,
Larry Karp

anyone care to share?