All Forum Posts by: Hattie Dizmond

Originally posted by @Account Closed:

You should make an offer and leave out all the weasel clauses because most investors don't have included weasel clause, and that is the reason they are going really fast.


Joe Gore

Yep.  The worse they can do is say "no".

If you don't mind me asking, what area are you targeting right now?

Holly,

You're absolutely right about the market.  No inventory will do that to a place. 

As far as the REO, you just never know. Part of it will depend on who the lender is. Most of the bigger banks just want to be done with it and sell. The smaller, portfolio lenders are more concerned with their total loan loss and less concerned with ongoing holding cost loss. It's just a different philosophy. Also, some of the banks are using brokers to help with their REO liquidations. As a result, you will run into some situations where they will hold, rehab and then sell at ARV.

In this case, place an offer on the house you're comfortable with.  Set a max amount and don't exceed it, under any condition.  You're dealing with a lender, so there is no emotional factor of a seller being offended by the offer.  The worse thing that will happen is that the lender will reject your offer without a counter.  The best thing that happens is they accept your offer.  You're not going to know what they will do, unless you place an offer.

Get comps for the house. Do a thorough walk-thru and account for any repairs, upgrades and/or updates you feel the house needs to be valued at the comp level. (Make sure you never bid above ARV - rehab costs.) When you submit your offer, make sure you stress ALL the things that need to be done. Even if you don't feel they are mandatory, make your wish list, because your goal is to make the lender understand why your offer is low.

Good luck!

Hattie

Beau...welcome to BP and to DFW!!

I am enjoying my PRO upgrade and the additional materials I have access to with it.  You'll have to decide for yourself.

In the meantime, I'm wholesaling in the Dallas area.  Let me know what your criteria is, and I'll be happy to add you to my buyers list for future opportunities.

Hattie

I think the key here is, if your numbers are accurate, you have multiple, workable, exit strategies.  That's a phenomenal place to be.  Get the property under contract, while deciding what your personal end game is at this very moment.  Until you have it under contract, you have nothing.  Once you get it under contract, attempt to execute the exit strategy that fulfills your personal goals.  If that is to get some mentoring with a real deal, then partner with a more experienced flipper.  If it is to pocket some quick cash so you can execute a marketing plan, fine.  It's completely dependent on what your goals are right now.  The hardest part is finding the deal and getting it under contract.  Ask any of our BP heroes how many offers they write vs. how many are accepted.  Get that property under contract!!!

Welcome! I'm excited to see all the DFW newbies. I don't feel quite so new now!! ;-)

Hot is relative and depends on your criteria.  Dallas area home sales are down slightly from 2013, but that is due to historically low inventory.  Across the entire DFW area inventory is down to about 2.5 months.  Prices are up because of heavy pressure, with properties in areas of heavy pressure having less than 30-days on the market and selling at or slightly above original list price. 

To me, that means it's a hot market.

Deals are harder to find for investors, but the exit for a good deal is there.

As long as you keep the mortgage current, ensure taxes are paid (if not escrowed as part of the original note), and maintain insurance - i.e. You do all the things that keep the existing mortgage under the radar. - you should never have a problem with one of the large banks or mortgage companies. It is the small, local, portfolio lenders that will present the risk. These originators have people touching collateral who actually know what's going on. The large banks just slap a barcode on a deed, register it in their collateral system and file it in the vault. Assess your true risk up front, before you automatically tie up large sums of liquid capital as reserves. And mitigate the remaining risk by having an exit strategy for the existing mortgage. Joe Gore rightly points out there are tons of cash buyers in the Dallas market.

How exciting for you and your family. Welcome to BP and good luck with your first deal and the many that I'm sure will follow!!

For comps there's a really great rule of thumb...never cross a major street. Stay inside the natural boundaries of the property's neighborhood.