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All Forum Posts by: Gary Marcotte

Gary Marcotte has started 3 posts and replied 23 times.

Post: Foreclosure prices seem high

Gary MarcottePosted
  • Investor
  • Plaistow, NH
  • Posts 23
  • Votes 2

@Edward A. 

Just a word of caution to you Edward based on your thought of narrowing down your margin to 15-20%.......make sure your rehab estimates are spot on and make sure you have been meticulous as possible with your estimated holding costs and closing costs.  Any omission or under estimate, not to mention the possibility of something "unseen" in the rehab process will eat up that margin quickly.  And there are ALWAYS things that go wrong/unseen in a rehab (thus build in contingency $ to your rehab est.)

Stick to your own rules of investing based on your risk tolerance.  Don't get caught up in bidding wars.  

Good luck, be patient.  

Post: Should I lose a bedroom so make bigger closets, etc.?

Gary MarcottePosted
  • Investor
  • Plaistow, NH
  • Posts 23
  • Votes 2

Oh yeah, and any other holding costs ie, utilities, insurance etc....

Post: Should I lose a bedroom so make bigger closets, etc.?

Gary MarcottePosted
  • Investor
  • Plaistow, NH
  • Posts 23
  • Votes 2

Nevermind 3 vs 4 bedrooms.  Here's something to think about:

If you start tearing out walls and such you better expect to have the local inspector involved and if the house was built in 1921 there could be other things considered "out dated" as far as code is concerned.  If you do too much then you might trigger a code upgrade of other systems, ie, electrical, plumbing (if you add a master bath).   This varies from city/town but something to consider if you haven't already.  

The $36k purchase price is not inclusive of closing costs at purchase or is it?  You mentioned fees but I'm assuming that is associated with the auction premiums. Remember to add in your closing costs for the sale as well.  Now add in your est rehab costs. You get the picture.

Gary

Post: Is REO inventory overpriced everywhere?

Gary MarcottePosted
  • Investor
  • Plaistow, NH
  • Posts 23
  • Votes 2

@Rumen Mladenov- Ouch!  I feel your pain.  Auctions are a tough one.  The potential issues with buying on the court house steps are plentiful.

Post: Bath Room vanities

Gary MarcottePosted
  • Investor
  • Plaistow, NH
  • Posts 23
  • Votes 2

I agree, not enough usable counter space.  Double bowl granite tops are nice, that way there is still separate sinks and I'd also stay with the 2 mirror/light set up (more modern than the big over sized mirrors of the old days)

Post: Is REO inventory overpriced everywhere?

Gary MarcottePosted
  • Investor
  • Plaistow, NH
  • Posts 23
  • Votes 2

@Jon Strishak - I'm afraid you are in the minority on this one Jon. More than 90% of responses to this thread seem to agree that the REO market is over priced. And this is coming from folks all over the country.

And to Walts point- when they sit on the market for 6, 8 months or more, they are def over priced.  It could be they are over priced for the area or they are over priced based on the costs still needed to bring it to market condition etc... (Granted you need to be able to analyze correctly and estimate rehab costs correctly).  Who wants to work on a project for 4-6 months to make $15k?  Not me.  That's the margin I'm seeing when analyzing these properties at the current asking prices.  I won't put lipstick on a pig just to get it back on the market.  So if I can't get it at the right price in order to rehab it correctly I'm not gonna do it.

Heck a turn key house can be over priced too.  We've all seen that.  It's either have the BEST PRICED house or have the BEST HOUSE at that price. 

Post: Is REO inventory overpriced everywhere?

Gary MarcottePosted
  • Investor
  • Plaistow, NH
  • Posts 23
  • Votes 2

@Walt Payne 

I've seen the same thing here. The only thing about "new to market" is the "price". They take them off and relist with nothing done to the prop except an increase in the asking price. They were over priced to begin with which makes me really question the BPO criteria REO agents are using to come up with these numbers. No offense to any realtors out there but I have to assume that this is where the process starts.

Post: Is REO inventory overpriced everywhere?

Gary MarcottePosted
  • Investor
  • Plaistow, NH
  • Posts 23
  • Votes 2

@Walt Payne 

I've experienced the same exact thing.  "New to market", give me a break.  Yeah new to market with only a NEW PRICE.

Post: Is REO inventory overpriced everywhere?

Gary MarcottePosted
  • Investor
  • Plaistow, NH
  • Posts 23
  • Votes 2

I routinely track my offers so I can follow up on my analysis and numbers when my bid is not accepted, just to see if I was off or not.  Because I have been in so many bidding wars over the past 6-8 months I wanted to see if I was being too conservative.  After checking up on a number of them (post rehab) I have to say that my numbers were pretty much right on and at least I felt some kind of validation.  Unfortunately validated feelings don't pay the bills.  Properties that were purchased for 15-25k higher than I was willing to pay ended up being listed for a similar amount over what I was going to list them after the rehab was complete.  Also, they have been sitting on the market for over 3 months without selling.  You do NOT want your rehabbed props sitting on the market that long.  To me, this means it is over priced and that is because you paid too much at the purchase.  As they say, the money is made at the purchase.  Thanks to all for further validating my feelings on this one.  Maybe I should try a short sale or an auction....maybe there's not as much competition?

Post: Newbie from NH!

Gary MarcottePosted
  • Investor
  • Plaistow, NH
  • Posts 23
  • Votes 2

Good luck Nick.  Sounds like you've got the right attitude!