All Forum Posts by: Larry Chafe

Annette,

I tried bandit signs for a while.  They didn't result in very many leads.  Some get taken down very quickly depending on the city enforcement.  I guess the trick is to find a location that's visible and doesn't get pulled down within days.  Finding a spot on private property that's publicly visible would be the best - may need to get owners permission and/or pay them a small amount for this.  In the end, for me - they were not worth the time/effort to get the result.  You could pay others to put them up for you, but that will cost you more, and you have to check up that they are being placed properly and not just tossed away.

The signs did seem pretty good at getting other RE investors to call me.  So if you are trying to build a local cash buyers list, they could be useful.  I still have a few, and plan to selectively place them.

Larry C.

Great California Homes

Thanks for the advice.  My house is already at the high end of the rents for the area, mainly because it was remodeled/updated several years ago.    So i will just include them in the rental, but put down in the lease agreement that I won't pay for repairs.  If they break, the most i will do is have them removed.

Thanks,

Larry

Hello,

My last tenants asked if they could leave their washer and dryer and refrigerator in the house when they moved out. I told them OK, since They are only 1 year old, and in perfect shape. They left the manuals and receipts for them. My question is how do other landlords out there handle appliances being included in a SFR rental like this?

If I include them with the rental, i would to have to repair the refrigerator/washer/dryer when they break.  Should I "give" or sell the appliances to them?  

Just looking for ideas on this, as I already provide the stove and dishwasher, but I think they are pretty reliable compared to a refrigerator , washer& Dryer.

Just looking for some ideas here maybe I didn't think of.

Thanks,

Larry

Sam,

My opinion of the REI matcher system hasn't changed. There aren't many properties listed in it for CA. Seems to be more active in texas where Phil Grove is based. The main value out of it is the website, database of your leads, and email auto-responders. There are other competing software for RE investors that can be had for less. Phil's training material is good, but i can't say the REI matcher is worth here in CA.

Larry Chafe

I'm going to be venturing into another marketing area of real estate different than what i've been doing. 

For cold calls/door knocking, I've heard that we get about 10-15 seconds (couple sentences) with a distressed homeowner (NOD, NOS, 60/90 day late) to avoid a flat rejection and get them to continue talk.

I'd like to hear what initial opening lines people here think work best to get the lead to open up and talk about their situation. 

I've heard there are a few openings to avoid, such as; "are you interested in selling your house?" or "I'm an investor and i want to buy your house".

I hear the best openers are trying to come across as offering "help/advice" and ask them what you can do for them?  

 What do you say when they ask, "who are you? and what do you want? (I'm an investor - not a realtor)

What has worked best for you guys and what openers haven't worked so good?  I should also say - I'm in the Socal LA/OC area - not exactly a neighborly "warm and friendly" market like I'm sure many in other states enjoy.  

Thanks,

Larry C
www.greatcalhomes.com

Yes, it seems the LA/O.C market is very competitive right now.  I'm about to start a marketing campaign myself.  What do you think is the best list to market to in LA/OC right now -  where the owner isn't already getting swamped with investor letters?

random non-owner occ SFR? (how many of these people even want to sell?)

NOD? (these people must get dozens of letters a day in LA/OC.)

30,60,90 day lates? (is this list even available to purchase anymore? can't find.

Larry Chafe
www.greatcalhomes.com

Hello Kyle,

What you are referring to is more commonly known as a "deed-in-lieu".  This is when the homeowner will give the property deed/title back to the bank, and move out of the property gracefully without having to go through a foreclosure and eviction process.   This is something a distressed homeowner would need to apply for to get the bank to agree to do it, the process is very similar to a short sale, and would have nearly the same requirements from the bank (homeowner would need to prove hardship).   The bank would rather do this than a foreclosure, because it would cost them less money to take the property back.  That being said, depending on the bank, it may be hard to actually get done, banks are difficult and dont always make sense.  They let many short sales expire and go to foreclosure...

TO answer your question, once a deed-in-lieu is done, the bank owns the property.  You would need to contact them if you wanted to buy it.  In most cases, they would turn it over to a local realtor to list/sell it.

Larry Chafe

I don't agree with the last poster, that sellers are "getting educated". (Who's educating them?) What we are seeing is market forces at work here in LA area. It's now a sellers market. Interest Rates are low. Things selling with multiple offers, over asking price is commonplace again. Some of that is seasonal right now in the summer. For sellers that have fixer-upper properties that need renovation, and want to sell to an investor: I have seen many place ads in the paper / CL, etc... and hold investor "open houses". And there are alot more investors in the market now that it is moving up. They are paying higher prices, banking on prospect of higher resale prices. In a sense, the traditional wholesale business model of buying at 70%ARV - cost of repairs is dying right now in LA. Investors are paying 80-85%(or more) of ARV - C.O.R., and if you are a wholesaler trying to bid against a re-habber, you are going to be out-bid or you will pay too much. So as an investor trying find wholesale deals myself, i am feeling the same frustration out here in LA. Any word and strategy from anyone taking down any deals here in LA area?

Larry Chafe

Great California Homes

www.greatcalhomes.com

I'm interested if someone could comment on methods they have used to postpone or otherwise delay a Trustee sale (foreclosure) in CA. I have a lead on a property that contacted me very late in this process. She is about 4 or 5 days away from her sale date. I know a common method is to file for bankrupcy. My lead does not want to do that.

I know there are other methods, such as filing for a temporary restraining order, but don't know how effective this method is in CA. I see there are pay services advertised online that claim to be able to delay trustee sales for many months. Does anyone know how those work, and what legal techniques they use?

Thanks,

Larry

I suppose you could try to do a lease option, but same as with a sub-to, good luck finding a lease holder wanting to make payments for x years toward a down-payment on a house that will still likely be under-water. The agreed purchase option price would still need to be high enough to pay off the underlying loan. I'm afraid this one is a short sale, unless the owner wants to wait for many years for the market come back.