All Forum Posts by: Account Closed

Nice to have you here, Larry. I think that you will find this site and the knowledge base of items in the forums archive to be of tremendous assistance. let me know if you are doing any investing here in Austin.

Jeff

On my REO there is a stipulation that I cannot resell the unit above a certain price for 90 days. In addition, when you look at the insurance for carrying costs, the builders insurance (from what I have seen) is even more expensive than traditional insurance and my policy was a 6 month minimum. Just a couple of thoughts to throw in as you estimate holding costs and duration.

There could be a lot of factors that go into the price. For some perspective, I just priced one out with a reputable local foundation company (Pier and beam, not slab). it was pretty bad, as well, similar to your situation, but on a much smaller house (about 1,000 sq ft). I priced it out at approximately $6,000. the guy next door had similar issue, but on a slab and his was about $20k. they had pipes bust as a result and had to tunnel under the house to fix them.

Also, when you get quotes, just know that the lifetime guarantee is only as good as the company stays in business. So keep that in mind as you price them out.

Good luck.

jeff

In my scenario, it was 15% down required for an investor property (no mortgage insurance required). They put in a stipulation that I could not resell the place for more than a specified amount for 90 days.

Hello Brandon,

I am in the middle of the process of purchasing an REO (through Fannie May) as well. It has Homepath financing available which helps to reduce the down payment and no PMI. Not sure if that is available to you or not, but it is a nice option that you should check it if available.

If you have not dealt wiht them before, they are not tremendously helpful (in my experience) and will not extend any timelines, so be sure that you have all your docs ready and organized and be persistent as heck in getting them on the phone (followups, questions, etc.)

Good luck to you on this one.

Jeff

Thanks for your feedback, Nick. i appreciate it. I am interested in the lower priced investment homes, so I feel that this gives me a great starting point for negotiations. Thanks for your help, this is a great resource!

Jeff

Hello all,

I am new to RE investing. What is the recommended formula or value for referral fees and wholesaler fees? Can anyone provide guidance on what are the normal parameters that you would expect to pay in this scenario? Or point to another reference that my help?

Thank you,