All Forum Posts by: Herm M.

"It is common to get short sales 20% below market..."

What does this mean? I'm trying to catch up on short sales after a year of rehabs.

20% by getting a low BPO and a cash discount also?

or

20% by getting 20% off the BPO price because of negotiating/cash offer.

I guess my question is... how hard/easy is it to get the banks to budge from their BPO nowadays? Quick closing + cash offer?

Thanks Maryann.

And I have the same question as Aly... how often, and under what guidelines, does a short sale qualify as HAFA?

Can someone explain to me what HAFA is please?

I haven't worked on a short sale in a year and a half, but I'm ready to pursue them again.

What has changed?

Is meeting and selling the BPO agent still the biggest key?

What percentage of short sale approvals have the 30 day anti-flip rule?

What percentage of short sale approvals have the 90 day anti-flip rule?

Are lenders ever rejecting requests for an internal BPO?

How many BPOs are being done? I've heard that some lenders will do a drive-by BPO as soon as there's a notice of default on the property... any truth to this?

Mike, $10,000-$20,000 profit? And an occasional home run of 50k? Those numbers sound very low.

http://www.biggerpockets.com/forums/67/topics/63439-pictures-of-my-first-rehab-

I Just completed this house in Daly City.

http://www.biggerpockets.com/forums/67/topics/63439-pictures-of-my-first-rehab-

I have a similar project right now in South San Francisco.

Both are very close to SF. I'd be interested in possibly partnering up.

I'm not saying you're lying, but your stories are similar to Aesop's.

Your claims:

- You've been investing since 1996.

- You've made 500k on a property in Atlanta.

- You've paid 30k for a lot of properties, and sold most of them for over 200k.

And yet you're wondering where to get a hard money loan for 240k on a $1,000,000 property? Really? You can't find a loan for 25% LTV?!!?

And that's without me even wondering where your personal cash is. You've closed 20 deals, made 500k, 150k+, etc... and can't come up with 240k? Hmmmmmm.

The numbers are a little bit confusing because I bought two properties as a package (same seller).

I paid 650k for two properties. You could say 325k each, but on paper it's broken down as 400k and 250k for the seller's tax benefit.

Cost to close: 850k

- 650k purchase price
- 20k "referral fee" to agent (basically a wholesale)
- 33k loan points on 600k hard money
- 7k escrow fees + junk fees
- 140k to hard money lender for rehab control

Holding Costs: 50k

- $6400 payment on 600k hard money loan at 12.75%
- $600 property tax between the two properties.
- $1300/month payment on other private money I borrowed.

That's $8300 x 6 months = 50k.

Additional Rehab: 50k

- Hard money guy held 140k, but it will cost me about 190k total for all the work.

Closing Fees: 50k

- 25k per property. This includes 3% to buyer's agent (roughly 20k), $3,500 to listing agent*, $1500 escrow fees.**

* I'm an agent, so I handle all the work, but I just list it under another agent's name.
** I will ask the buyer to pay all escrow fees.

Total Cost: $1,000,000

- 850k to close
- 50k in holds
- 50k in additional rehab
- 50k in selling fees

I'm looking to sell the properties for a combined $1,250,000. That'll leave me with a profit of 250k, give or take 20-30k.

Also, I didn't include insurance costs because that's a part of my rehab costs. I'm spending 190k on rehab, but that includes insurance.

Steve, the cleaning products were already there, but probably empty.

Jason, 6 dumpsters of 40 cubic yard volume, and one dumpster of 20 cubic yard volume. I spent about $4000 just on dumpsters.

As for the smell? It was HORRID. The worst stench I've ever inhaled in my life. Absolutely disgusting.

This lady didn't throw away any trash, nor do any landscaping maintenance for what seems like 7-8 years. She literally used the interior of her home as her trash can.

And yes, she had an infatuation with cats. I'm sure there were dead cats somewhere in that garbage.

There was a ridiculous amount of trees and bushes on this property that hadn't been trimmed forever. The neighbors across the street had no clue that the lot was this big, nor were they aware of the panoramic view. All they ever saw was trees.