All Forum Posts by: Bob Jaeger

@Andy Thompson

You’ll fined the full array of answers from the minimum requirements to the absolute best assemblies available today with matching price range for each.

As a contractor as well as a buy and hold investor, I look at choices like this through the lens of I guy who do only wants to spend this money once. For that reason, I tend to follow best practices for the most reliable assemblies. Redguard and other waterproofing options, when used correctly, are only going to eliminate the need for future rework items down the road.

Maybe a better question would be, what is the most cost effective way to do my project way in a manner that’s consistent with best practice for longevity?

That said, I like denshield as well. It’s quick, waterproof, reasonably priced and easy to work with. I’ve also seen guys prove the practice of Redguard over plain drywall. Not saying I’d do it myself but it makes the same point.

@Justin Abdilla

All of this does make me wonder about FHA, VA and other PMI non performing notes as an investment though. If one knew that in time the gap on UPB would be made up by the insurer then why not scoop em up?

@Justin Abdilla

Fair enough. Just needed to hear from others who’ve been down this road.

Thanks for the feedback!

@Andy Mirza

Thanks Andy for the feedback. Starting to see that this path may not be a fruitful one to follow.

@Justin Abdilla

Awesome feedback. Thanks a ton!

I understand your point about the quit claim but I'm wondering if having that position puts me in an actual position to try to negotiate with the lender. The condition of the house is an absolute train wreck so I'm thinking the lender/FHA may be willing for that reason although I don't expect much to be done quickly or reasonably via FHA.

I've done a little additional research and learned that FHA has a program to reduce the principal owed on a mortgage. That combined with the notion that the mortgage is likely to be assumable is what makes me ponder the idea of stepping into that seat to try negotiating an assumption and reduction at the same time.

I’m thinking that the cost to me might be the amount paid to the owner to quit claim but I’m not sure of the impact to me for being the owner (not the borrower) on a home that might ultimately end in foreclosure if I am unable to get the lender to approve the assumption/reduction. Sounds like a stretch I know but I’m trying to problem solve.

Thoughts?

Looking for strategies and creativity ideas on how to pursue an opportunity I found in my area that at the right price could be a good addition to my BRRRRRRR portfolio. The facts and challenges are-

1) The house is listed for sale on the MLS and it's "short sale listing approved by bank" leaves no deal.

2) The first lien holder, which is a FHA loan, is for foreclosing and the sale date is set for about 3 months from now.

3) The owner died and his estranged daughter now has the right to sell.

4) The estranged daughter has zero motivation to engage in the process.

5) The lender is owed about what the houses ARV might be after $75k in renovations and carrying costs.

6) I've been able to connect with the attorney handling the foreclosure in the interest of pursing buying the note who reports that since it is FHA they are unable to accept a short payoff.

This is where I'm looking for ideas or advise. Ultimately I'm trying to get in a position to control the property prior to foreclosure in the hopes of not having to compete for it at the foreclosure sale where I believe it wont sell and end up going back to the FHA although I have no idea what the opening price might be. It would seem that the foreclosing lender isn't that motivated because their losses are covered by the FHA.

The only thing I can think of is trying to offer the daughter cash for keys for a quit claim deed if I’m using those terms correctly. If I am the deed holder do I have any options?

I realize that the lender can still foreclose but might I have a better position to negotiate from with the lender or possibly FHA?

Thanks in advance for your input!

I think it looks awesome. You lucked out on a gap in communication.  Enjoy and move on. 

I agree with Richard. While I don’t know what’s typical in your area I have seen this repair many times in SoCal. Price seems reasonable but I’d ask a few more questions about the location or even call the local building department to verify. They are your friends not your enemies. 

Depends on what quality of product your looking for.  While you can often find good quality lines like Moen, Kohler and others at both big box and supply houses, you’ll need to go to supply houses or online retailers for higher end product. I’d say though that it’s less common for higher end fixtures to be used in rental situations but I suppose it depends on who your target market is. 

I’d also give some thought to the water quality in your area. Scale and iron build up will excellerate wear and tear on anything that water touches including dishwashers, water heaters shower doors etc.  Know your local water conditions and install a water softener if necessary. It will pay for itself in the form of repairs and replacements you’ll be delaying.  A good water softener can be bought at Depot or Lowes for about $500 and installed for about the same. 

Hi Gang!

I'm looking for websites or other places I can find real time data on real estate sales so I can make solid decisions on where to focus my investing efforts.  Specifically, I'd like to focus on Days on Market less, Months of Inventory and Median Price to back into which towns near me.  I realize I could ask my realtor to do this for me but I'd like to know if its out there somewhere I could do it myself.

Also, what other sources or data points do you look at such as population and job growth do you look at when considering where to invest and more importantly where do you get the data?

Thanks in advance for your help!!

Bob