All Forum Posts by: Erik Hitzelberger

@Simon O. 

 I just sent you a pm with the name and number of a great agent in Mount Pleasant.  My dad lived there for ~15 years and loved it.  Of course, we enjoyed visiting!  Good luck!

I agree with @Jessica H. that the tax records are the best place to look for the owner (unless the homes are managed).  This, however, is manual and not in bulk as you want.  My next suggestion is to hire someone to put together the list for you.  You can find someone on Craiglist or other places who will do this.  Additionally, you can hire someone from elance as long as everything is online.

I've had 3 properties broken into.  The first time, they just stole the toilet.  In the most recent instance, they stole the 2-day old furnace and AC.  In each case, they kicked in the back door at night.  (I'll reiterate that a locked door is not a deterrent).  To address the somewhat ironic accusation, I did not even call the insurance company nor did I accuse anyone (including the neighbor I am fairly certain took the HVAC).  

I have not had a problem with damage or theft from anyone that I have given access to a property.  Most of the time, I change out the locks although this is something I should be more religious about.  Previous tenants are far more likely to have a key than someone who viewed the house.    

I would do what Ned proposed.  Don't spend too much time analyzing it beforehand.  Wait to do that once you know there is some degree of interest from the seller.  

Congrats on getting started and good luck!!

Pay attention to the time you are spending and whether you are missing any opportunities.  This will help you gauge how many letters you can realistically send out at once.  My first mailing was 1000 and it was a nightmare.  Besides the fact, I wasn't very good at screening for motivated sellers, I simply wasn't prepared for that many calls over 3-4 days.  After that I did 250 / week.  Still got to the 1000 / month number I was targeting, but a more manageable pace.   

@Account Closed beat me to the smart-*** answer, so I guess I'll give you the real one. I primarily re-invest, but I do dedicate a portion to a vacation every year. REI is work. It's nice to get a benefit from it that I can enjoy with my family now rather than 10-20 years from now.

@Jason Eyerly I have done several flips with HMLs.  To answer your questions,,

1) Popular exit strategy --> Sell the house

2) Cash-out refi:  In my area, it is very possible.  I have refinanced homes when I decided to do a lease or lease option.  Small local banks in my area do not require a seasoning period.   

3) Proof-of-funds: It's best for all involved to a have a pre-approval letter. In my case, I went to lunch with the HML. He asked for a few substantiating documents and I was pre-approved in a day or so. I call whenever I am considering a deal and he sends me a PA letter.

4) HML terms: This is entirely dependent on your lender. Talk to him/her and understand the terms. Points and Interest rate is an important part, but not all of it. How do they handle draws? What happens if you need an extension? Is there a minimum amount of interest due?

I used to think money was the most important thing in a deal, now I know it is the least important.  There are lots of people with money.  The number who can put together a deal is orders of magnitude smaller.  Don't underestimate the value the person is providing.  I don't know the types of homes, the neighborhood, or even the area.  Maybe all it takes is a sign or a street corner.  If so, go put up the sign.  

What the other guy makes should never be a concern.  This is no different than refusing to buy a property where you could make $100,000 because the wholesaler is making $30,000.  It's a good deal for you or it's not.

All of that being said, I have the same question as J.  Are you sure there is no down-side risk?  If so, I'd definitely be in.  If you can lose your option, then this is a question of risk-tolerance.  How much are you willing to lose in order to have the opportunity of making a significant profit?  No one can really answer that for you.  

@Account Closed It depends.  If you hold this property long enough, EVERYTHING will have to be repaired / replaced.  Somethings, multiple times.  It is not reasonable to discount for functional items just because they aren't new.  

That being said, if the windows are at the end of life and you are going to have to replace them in the next year or so, it is a valid consideration.  You could discount your offer or you could pay slightly more and have the seller replace them.  The latter option would save you the out of pocket expense while effectively financing the cost over the period of the loan.  

I've never had anyone actually attempt to move-in, but I have had 1) multiple posts created at different prices, 2) someone create a phishing ad acting as though they were a missionary, and my personal favorite 3) an ad stating that the owner was leaving the country on a job assignment and had to get a tenant immediately.  First one to the door with $500 could rent.  (Rents in the area were $900)

A contractor was at the house that day and said person after person drove up.