All Forum Posts by: Linda R.

Jasmine,
Yes it can be done, it depends on the house, the extent of the repairs, your contractors, your taste! I find myself telling my husband often, it's not OUR house, it's a starter house for some young couple! That's also why I do this on my own with a carpenter as opposed to with my husband! LOL, I bought a 9900 house last year, put 35000 in it, sold it for 70000.

Linda

Matt, thanks! I always do all my DD and then trust my gut as it is always right! LOL, I thought it was dirt cheap too but I am not ready for a deal like that at this point.

FE, this property is not far from you, it is in the LOTO.

Thank you gentlemen! I appreciate your responses!

Thank you, we would be very interested in owning a property like this but being less than a year into real estate investing, I am not sure I am ready for a deal like this. It is located in an area where we frequently go during the summer but it is 4 hours away. If it were here close to me, I would definitely be doing my dd on it.

One last question if I may, what does "No broker co-op for this asset" mean?

Thank you for the info!

Can someone tell me what I would be buying if I won this auction? What does nonperforming mean besides the obvious? Thank you in advance!

Linda

Auction.com presents the opportunity for an investor to acquire a non-performing mortgage whole loan with an interest rate of 6.79% and a maturity date of 8/1/2016. The loan is secured by a 32-unit apartment facility that consists of 8 buildings. In addition to rental improvements, other site improvements include an in-ground pool and a laundry room. The apartments units were constructed in 1984 of wood framing, and gross building area is 24,640 SF. There are 31 two-bedroom apartments and 1 one-bedroom apartment. The buildings are constructed on a crawl space with a concrete foundation and walls, and wood/stud/wood siding exterior walls and wood joists with plywood flooring. Interior finishing includes: painted drywall ceilings and drywall partitions, carpeting, linoleum and hardwood flooring. Average size of the two bedroom units is 750 SF, while the one bedroom unit is 650 SF. The individual units are served by electric forced air heating and cooling units.

There is no Broker Co-Op for this asset.

You said, The way I see it, the first step is evaluation. Evaluate foundation, septic, and structure thoroughly to find any hidden surprises.

No offense but you should've done this before you made your offer on the property so you would have a handle of your expected costs associated with the rehab.

As far as rent or sell, for me that depends on the final cost, if it cash flows as a rental, I may rent it, if it doesn't, then it is a flip.

Good luck to you!

Yay! I'm a pig! Never thought I'd say that! :D

Travis,
I don't have a lot of time for a reply but wanted to pipe in quick, DEFINITELY get an LLC, do everything business related under it. Ask your lawyer about how to maintain a corporate shield. I have 1 million umbrella liability and each property has at least 250000. I use Farm Bureau and have an outstanding agent, prices are very good.
I also flip and rent, but I do not put renters in flips. My flips all have new kitchen, bath, floor coverings, etc so I do not want a renter in there but I am going to stage my next one with the help of a locally owned furniture store. Also, try to get a construction loan on your flips so you don't have to make a mortgage payment every month.

Linda

PS Why are you financing a 23k house for 30 years? Have you looked at how much interest you'll pay on that? I am sure you are planning on paying it off early but still, just curious.

Thanks Jackie,
I most certainly did a lot of homework before I bought my first property, I learn something new every day about RE and some days I learn 5 new things!

Paul,
Failure is not an option and I do not intend to do so. I do an incredible amount of DD before buying a property, I can home inspect like a pro, my lawyer can't believe how well I can title search a property and I do not allow the lure of a cheap house to reel me in. Will I make a mistake, of course and I have but I have learned from them and I will most certainly not run my business into the ground. I am glad you figured it out and changed things for yourself. If I had crashed and burned, my husband would have me working somewhere for someone else and that for me, is NOT an option! :-)

Origination? WTH is that? I just call my banker and say I found a house I want to buy, can I stop by and grab a POF letter? I would recomend to every investor to bank locally. WOW, maybe I am just sheltered here in Iowa!