All Forum Posts by: Sean Terry

John

Are you talking about an “investor†conventional loan? I’m in Phoenix and we are buying a couple houses a week and selling them to investors and the max LTV is 75%. If you have a program that can do a higher LTV than that I would be very interesting in speaking with you. We have approached many portfolio lenders and most of them have stricter guidelines. You would be the first person I know that has that product.

We do have alliance partners in other markets we do business with other than Phoenix, please let us know the markets your lenders tagged as not declining so
we can take advantage of the opportunity.

Thanks

Tyler

Unfortunately Jon is correct; there are no more “cash out refinancing†in this market. The only conforming loan you can do is a “rate & term refinance. So let’s say you buy this $70K home with Hard Money Financing and put down $10K and the lender puts a note on the property for $60K and then you rehabbed the property spending $30K. Your total out of pocket is $40K and under Fannie and Freddie’s current guidelines a investor must have a 680 credit score or higher and documented income with only 4 properties on their schedule of real estate. This being said you will be able to do a rate & term refi only paying for the $60K and the $40K will be stuck in the property for 1 year or if you sell the property. I would really talk to a mortgage broker and get pre qualified and then focus on profits and cash flow.

Courtney

I would stick to an area you know best like a 5 mile radius of your home. Then look for homes that are $175K and under. If you are deciding to purchase these homes with conventional financing the Fannie and Freddie guidelines will only allow a 75% loan to value. So for a $175K max house limit your loan would be approximately $131K. If you take a 7% IO 30 year loan, the payment would be ~$765. Now ad in taxes and insurance and you would have a final payment. For example purposes lets use $200 for T&I. Your total monthly payment would be $965.

Now check the rentals in your area and determine if the rents for a $175K house will cover the mortgage. If they do, than you have a good start. You will of course have to determine your operating expenses above and beyond the monthly mortgage payment.

You might want to look for a real estate club in your area that can help with your education and when you feel comfortable don’t hesitate in jumping in. I have met so may so called investors that “know†a lot of good information, but when it comes down to execution they are terrible. Start looking for houses, get involved with other investors and continue to ask these very important questions.

Happy Investing

I started buying real estate in 1992 and fell in love with making great deals. The best thing about this business is you can work any time you want and you can make as much as you can dream. No limitations. Good luck!

Post away, there are a lot of active investors in this forum that have an amazing dept of knowledge.

Welcome Douglas, now is defiantly the time to be investing in real estate, there are so many good deals out there right now. We have been looking to expand into other markets, which markets are you see the best deals that make sense?

Congratulations on starting your career in real estate investing, I love this business and wouldn’t want to do anything else. You can make it as big as you desire. Good Luck with your ventures!!!

No, this is not illegal its stupidity! I would wait until the bank takes the property back and eventually lists it with a realtor. They will most likely list it for 85% of the $400K BPO price at $340K. I would then offer your $300K and see if they take it.

I have done this numerous times when the opening bid at the courthouse steps is too high but the property is in a good location. I just wait for the bank to take possession and list the property, usually at a price that makes sense. Be patient and let the deal come to you.

Good luck

We have been using Google Adwords to find targeted buyers and it seems to work quite well.

Jon,
I agree that every investor needs to do their own due diligence, and I welcome anyone who would like to fly to Phoenix and view the houses we have to offer. You are obviously a sophisticated investor who has the time, money and crew able to do thoses types of extensive renovations and you can handle the risk involved The investors we cater to does not want take the risk or have the means to do what we do.

We believe we are doing a service to the neighborhoods by cleaning up these houses and to the investor by delivering turn-key properties at a fraction of the cash outlay.

With current market conditions anyone can pick a neighborhood and find comps with large price swings. That's just the way it is. But with our program, a certified bank appraiser will be performing the appraisal. If it comes in at $110 and the loan amount will be $82,500. If it's comes in higher 75 percent will be higher, lower it will be lower. If we can not trust a bank appraiser than we might as well never invest in real estate. I can say some deals we broke even on, after all that work and some deals we do ok, but Fortress will take the risk, not our clients.

Again Jon, I appreciate your feed back and respect your opinion.

And to all the folks, higher a good realtor and have them represent you, have them look at how we renovate our properties. we would love to meet them and don't worry about paying them, we will pay them a commission.

Happy Investing,

Sean