All Forum Posts by: Bryan Silver

Finding undervalued properties is a science. Takes a lot of time and research. Unfortunately, opportunities will rarely fall in your lap unless you network with an agent/expert that focuses on REO/Distressed Properties.

Sherry,

Very enlightening post. I won't classify your situation, ordeal as a 'beginner mistake.' Heck...seasoned investors get caught in the same trap.

Back in 2008, before market meltdown, countless of investors acquired multiple properties (4 or more) in Florida at inflated prices only to be stuck with those same properties once the economy tanked and lending regulations changed.

Like you pointed out in your original post, the key to acquisition and flip is location, location, location.

If you purchased properties in Rust Belt cities like Kalamazoo & Cleveland, chances are, you will be stuck with those assets primarily due to a glut of inexpensive homes on the market, massive joblessness, and the economy is several years from recovery.

Personally, I refuse to invest in Midwest (excluding Chicago)unless my strategy/technique was to buy and hold, long-term.

Good luck on your future endeavors.

It is a great question. From time to time I have considered establishing a 'Deal Of The Week' thread on BP.

Quite frequently, I come across distressed properties with huge equity spreads. So many deals that I couldn't possibly acquire all these properties on my own. Because of that....I was looking for proper platform to market these assets.

On the surface, email solicitation sounds like a good idea, but when I think about the # of tirekickers that would receive my listings, forward my listing throughout cyberspace, I have decided to refrain from using this as a reliable method.

It all depends. Usually the realtor has signed agreement with the owner/seller to market the property for a certain period of time. However, if that property does not sell, and buyer chooses to take property off the market, you have every right to discuss this opportunity directly with owner.

I agree with comment stated above, I would not circumvent the realtor, especially in a town in which this broker seems to be exclusive agent.

In this business relationships are important. You never know...if you develop a tight relationship/repoire with this agent, not only will be a staunch advocate in pushing your rehabs, but he may also tune you in on great deals hitting the market in the future.

My take is...go through the proper channels, and if you do not get the type of service you so rightly deserve, then take matters in your own hands.

Texas. short redemption period (6 mo.); phenomenal returns (25 to 50%).

Congrats Alex & thanks for sharing your story. Like you, real estate is a passion of mine.

I can easily spend 16-18 hours a day constructing deals (i.e. writing contracts; sending out emails; talking on the phone; etc) w/out getting mentally, physically tired.

As you pointed out in your original post...I eat, drink, sleep this stuff (real estate).

Obviously, I have other desires, passions as well, but that is none of your business. :)

Anywho..good luck on future endeavors.

I agree with many of the aforementioned posters. Definitely don't want to get 'sucked' into that game. Couple of years ago when the industry was white hot, I found myself competing against multiple investors for wholesale properties in Seattle market.

Many times to no avail.

I even went at lengths to put escalator clauses in my contracts to avoid getting outbidded.

I thought it would be best for me to specify the minimum amount I was willing to pay for house as well as the maximum. If my maximum bid got rejected, I was simply going to walk away & move on to the next deal.

Obviously, I am thinking from an investor perspective and not simply a homebuyer.

OP..you pose an excellent question when you asked...Is there any way to find out if they really have another offer? Unfortunately not. Listing agent is not compelled or obligated to state how many offers on table; the highest offer received; etc. For all you know...you could be competing against yourself.

Sad, but true!

Back in days of No Doc; SISA Loans - pulled off several simultaneous closings.

My first transaction was a distressed homeowner selling his property for 240K. Appraised value in neighborhood was $380K.

Wrote up purchase & sale agreement for 240K with an assignment clause inserted. We (my partner and I) had endbuyer who absolutely loved the home & was willing to pay full market value (380K).

Endbuyers credit was immaculate. So compliance (prequal, preapproval) was no problem.

At that time the credit market was extremely hot, it was only taking 2, maybe 2 1/2 weeks to close deals.

That's exactly what transpired on this transaction. After 2 weeks, closing docs came from the lender; docs were signed in escrow; and funds were released to buyer, seller, and brokers involved.

My take after closing: $62K.

If you are seeking to acquire, resell a property prior to it being listed, why allow the property to go to the bank in the first place?

Why not negotiate with homeowner in preforeclosure stage (i.e. lis pendens, NOD period)? Do a short sale? Offer foreclosure bailout?

You will make more money this way than allowing the property to go back to the bank IMHO!

Serious buyers only. Individuals or Group investors welcomed.

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