All Forum Posts by: Herm M.

Can we get some more input on this topic?

Justin and I were just having this conversation, and he's saying that it's getting increasingly difficult for investor's to get ANY type of discount.

What's everyone experiencing right now, and with which lenders?

Also, are you guys seeing varied results depending on whether you submit your offer in a corp. name or an actual person's name...?

Also, I'm assuming that the BPO on this is 305k. I'm okay to buy this at even 90%, which is 275k. That's my worst-case scenario, I hope.

I understand that REO's sell for more than 82%...but don't we have to factor in foreclosure costs too? Let's say this property could fetch 300k as an REO...what about the 25k or so that it's going to cost to foreclose the home? That brings the net down to 275k or so.

Anyway, what are some of the strategies I could use to get this for 250-260k?

How can we calculate the costs of a foreclosure?

Thanks for the input Rob.

Not sure where BOA came from, but this short sale is with WaMu/Chase.

Also, can I get some more opinions on whether or not 250k should be do-able on a BPO under 310k...?

Thanks for the advice everyone. I'm sooooo anxious to close my first deal.

I did REAL good with the BPO woman. I listed the property at 310k, and have a buyer at 340k who is willing to pay the difference in cash if their lender's appraisal comes up short.

So I spit my game at the BPO agent, and it worked wonders. She said "I can't disclose the exact BPO amount, but I will tell you that it's under your list price."

So let's assume the BPO is 305k. 250k is 82% of BPO...I'll be thrilled if I can get the property at 250k.

How do you make sure everything goes smoothly in this part of a flip? Since these bridge lenders usually only lend for 48 hours, how do we line things up?

Let's say that today I have a contract/approval from the short sale lender and have 30 days to close. So on the 30th day, that's when I'm going to have the transactional lender send the hard money. So on the 31st day, I need C buyer's side to bring their money to the table.

What's the best way to do this? Here's my big question:

- The title report is going to show A as the homeowner, until B records on title on the 30th day (or 31st).

- The C buyer has shown their lender a B-C purchase contract, showing that they're buying from B.

- Obviously, C's lender will not fund until B is on title.

Do we need to inform C's lender that we want "B buyer's name on title to be the LAST condition for this transaction. Clear all the other conditions during the first 30 days (appraisal, etc.), and we want you to be ready to fund as soon as B goes on title on day 30/31."

^ So your first two short sales, the lender said "we won't sell this to an investor"? Then you never had that problem again?

LOL :roll:

I did influence her.

She's a realtor herself, so I played the "innocent, hard-working realtor" role.

I said "Look, I have cash offers up to 295k on this property. You're a realtor, and you know how this works. I can find conventional offers for 320k, but what if that buyer's lender doesn't appraise it that high? Then my 4-6 months of hard work go down the drain, and the house could foreclose and I'm left with nothing. If you're familiar with the market, you know exactly what I mean."

She understood and said "I'll definitely help you, because I wouldn't want to get screwed on my deal neither."

Not to mention, there's only 4 comps within that area over the past 3 months. 3 of them are built in the 1980's, and comps are at 280-285k. The 4th is new construction built in 2009, sold for 380k. I told her that she should not count that one, and she easily agreed.

So yeah, I have a buyer lined up at 340k who is willing to pay the difference in cash if their lender appraises it lower.

So if she can give me a BPO of 300k, maybe my original offer of 250k will get accepted?!?