All Forum Posts by: Mark Ferguson

Just because someone owns other property doesn't mean they don't intend to or will not occupy the newly purchased home. However, I get the point you are making.

I also get the point of being in violation of the contract. But let's face it, that happens every day in all aspects of business (often times with little consequence).

Just seems like not placing a title restriction on the property defeats the "intent" and "spirit" of the requirement. As I would doubt there is much research, investigation or follow up done by a bank months after a purchase is complete.

The research is not done by the banks, but by other investors. There are a lot of watchdogs out there making sure they aren't losing deals to cheaters.

0 Votes

Originally posted by @Mike Smith:

Thanks for the reply Mark Ferguson

Love your podcast - btw.

My question is - what's there to stop someone from saying they are an owner occupant and just avoiding the requirement? Especially if they have all cash. That means no mortgage fraud and it's not a government owned home so you aren't fibbing to the government...they confirmed no restriction to resell on the title...

Also - what's the point of it? Banks assume they will get higher offers from the OO community?

They are usually signing an affidavit that states they are occupying it. If they did not occupy it they would be in violation of the contract and committing fraud by signing that document.

I believe they do it to make the government happy. I am not exactly sure why, but maybe it has something to do with the foreclosure laws, bank bailout etc. Banks have to go through a lot now to complete a foreclosure: offer short sales, loan mods, etc. SO even though the bank is not the government. There may be government restrictions in place that caus ethe banks to do this.

0 Votes

Originally posted by @Brian Zitzow:

Originally posted by @Matthew Paul:

Some areas due to the cost just dont work

I think that may be true here, but after looking at the numbers - I'm truly wondering: Who in their right mind would buy this thing for asking price? haha

If you are in an area with many investors with a lot of cash they can push prices up. You are buying as an owner occupant with only 3.5 down and mortgage insurance. Your costs will be much higher than the average investor who is buying with 20 percent down and no mortgage insurance. If you are in an area with high housing prices many investors will buy with cash and are happy with single digit returns.

3 Votes

Yes, there are multiple banks that do this now.

0 Votes

Originally posted by @Mindy Jensen:

I love your enthusiasm, @Daniel Eisman.

@Mark Ferguson is an agent in Greeley and an authority on their market. He'd be a good connection to make.

Thanks Mindy!

I am in Greeley and our market is getting tougher and tougher, but still some deals out there.

0 Votes

Originally posted by @Dave Meyer:

How'd it go?

Did you see my last post right above yours?

0 Votes

Originally posted by @Tarl Yarber:

Originally posted by @Charvick White:

Congratulations and just out of curiosity how do you find your other deals?

Hey Charvick! Thanks for the post. Great question, I find most of my deals off market through a bunch of wholesalers I network with. I have spent a lot of time networking with people here in my market. We have a reputation of closing quickly and most importantly ZERO drama. Because of that, we get sent a lot of the deals in our area to get first crack at them.

It is amazing how many investors don't realize how much jerking a seller around will hurt them. Sometimes it is better to continue with a bad deal if it means protecting your reputation. Nice work!

1 Vote

Originally posted by @Account Closed:

@Tony Kogan

To maximize your return? Buy a foreclosure on the court step. Buy some tools if needed. Fix it and sell it just below market value. Should be within 6 months.

I would spend the next 6 months doing the exact same thing. Shoot for at least a 60% return.

Unless the courthouse steps are ultra competive like they are here. And it's not always smart to do the work yourself

2 Votes

welcome! I am in Greeley but deals are hard to find. Especially in multi. What kind of price and rents are you looking for.

0 Votes

I got inside! And it is beautiful. Needs nothing except a little paint and the carpet stretched.

Then tenant is at the end of a 10 year lease that goes until Jan 2017. She wants big bucks to move out early. rent is $2,200 a month and the courts said it was valid, even though her uncle was the owner and landlord, it was a ten year rent to own and a number of other craziness that should make the lease not valid.

0 Votes

All Forum Posts by: Mark Ferguson

Mark Ferguson has started 247 posts and replied 2799 times.

Post: Bank Owned Owner Occupant Requirement?

Post: Bank Owned Owner Occupant Requirement?

Post: I found another duplex I want to buy, but WTF?!

Post: Bank Owned Owner Occupant Requirement?

Post: MOTIVATED investor in Colorado

Post: I get to see the inside of my $500k flip for the first time on Tu

Post: SOLD! $73,000 Profit! Bought Labor day when others on Vacation

Post: What would you do with $200k in cash?

Post: Hello beautiful Colorado!

Post: I get to see the inside of my $500k flip for the first time on Tu