All Forum Posts by: Jamie DeRossett

I am not from Kansas, but if sounds too good to be true.  It looks like the property cash flows $300 and selling for $17,000 rehabed.  What kind of rehab.  With a  asking price of $17,000 I would be very concerned about neighborhood and condition.  From reading the other posts of investors for the area I would say do not walk away, Run Fast!

It is always better if they stay in the property.  There are all kinds of programs out there, hafa being the most used where the borrower is automatically disqualified for relocation assisstance one they most out of the property.  There are no paying the mortgage and it will be a long drawn out process so there is no reason to move.  You also run the risk of the property being vandalized and it is just common knowledge occupied is better than vacant.  The lender is more filling to negotiate on occupied properties because the hardest part of the process is getting the borrower out and at that time there expenses go up because they will change the locks and start maintaining the property.  If at all possible it is best for the property to remain occupied.  Hope this helps thanks and have a great day!

The lender cannot talk you about the short sale without a signed and completed authorization from the borrower which you email to the lender.  That is always the first step of the short sale process and will get the ball rolling, but that is only the beginning and depending on the lender it can be a long process.  You will also need the last 2 bank statements, last 2 paycheck stubs, hardship letter.  I think that is all we were doing alot of short sales 2007-2012, but the market has changed and we are trying to find properties we can close faster.  The number 1 concern is the bpo or appraisal that ever lender orders of the short sale property.  There is no way to get around this and no matter what you offer the lender will always send a real estate professional out to access the property and now it is most likely an appraiser.  You want the value to come in as low as possible and if there is deferred maintenance and items in need of modernization that will need to be pointed out and a home inspection is always best.  I just purchased a property yesterday for $123,000.  We agreed on $130,000 which was great because the property was in good shape and will sell for $190,000 with about $10,000 in expenses.  Even though I was getting a good deal I still got a home inspection and there was minor foundation damage and I ended up negotiating $7,000 for the repair and I think I can get it done for half, but anyway $350 made me $6,650 at closing. Always get a home inspection unless you are a very good contractor.   As far as the answer to your question you need authorization letter to get started.  Thanks for the post and have a great day!

Short sales were the craz 2007-2012 when over 50% of american mortgages were underwater, meaning they owed more than they are worth.  My wife is a broker/agent and during that period all large percentage her marketing and work was from short sales.  We have alot of experience and have done hundreds.  The biggest hurdle and the one many investors are never able to cross is the bpo or appraisal that every underlying lender does to access the value of their asset.  However, there are investors out there that have mastered the art of low ball negotiations via the short sale.  I don't know how they do it, but would like to know.  One of the reasons we have had so much success is that I know every appraiser in my market and have a good relationship with everyone and that goes a long way in getting the value to come in really close to what you need.  My wife has now shifted her business model to conventional sales because they close much quicker and all the wholesaling has cut down of the pie.  She has 2 short's now has been working them close to 12 months.  That is the problem they take so long to close and then you can get close and then the bpo comes in high and there is no margin and you have wasted all that time.  Thanks for the post and have a great night!

Assessed value must be taken with a grain of salt.  It all depends on the local assessor.  Where I am at assessed values are fairly accurate, but I never look at assessed value except to determine taxes as it is usually based on purchase price adjusted over time. Market value is the only one that matters in real estate.  

Market value is simply the price at which something will sell within a stated marketing  period of time which will vary depending on the market. This value is determined by comparing the subject property to other similar properties that have sold recently and are hopefully in close proximity.  Thanks for the post and have a great day!

My wife is mega agent in Lexington and she is having great success in selling properties quickly and she always says if alot of people are coming through the door and no offers it is most likely price.  Every market is different; however, most of the midwest has seasonal markets.  The busy season is the summer (April-September) and the slow season is October-March.  This summer was extemely good for real estate across the country and I would check and see when the comparables sold.  If they sold in the busy summer season that may be the problem as markets around the country have slowed down and we are going into winter.

Tricks we use are to stage the house.  It sounds like you are getting great traffic so you should have great feedback for all the agents that did not make offers.  Listen to the feedback and that will tell you what the market thinks about the home.  We never listen to everything, but if the same items come up again and again they need to be addressed.  If traffic slows we use a picture of the best room in the house, hopefully the kitchen, and put it as the mls photo, instead of the front of the house, and this seems to help get more traffic if there is a awesome room in the house.

A small price reduction could help stimulate interest again and zillow has a feature where you can do a $1,000 buyer incentive and your house will show up in specailized advertising. Just a few tips.  Good luck and have a great day!

$700-$1,000 you should be getting a high quality product with double bowls.  Lowes and Home Depot both have quality vanities for about $200 with everything include and you should be able to get installed for $100.  You should be in for about $300 vanity installed and water running.  Thank's for the past and have a great day!

Hey Robert! Thanks for your service! Multi-family housing units can be a great opportunity for a homebuyer. With a multi-family unit, the owner can rent the extra space and earn supplementary income to put toward monthly mortgage payments and living expenses.

Traditionally, the VA Home Loan program is not meant for, or can be used on, the purchase of investment property; however, multi-family units are a different story. The official definition states that, "residential property may not consist of more than four family units and one business unit except in the case of certain joint loans."

What this means is that a homebuyer may use a VA Loan on a multi-family unit, as long as the homebuyer occupies 25 percent of the unit as their primary residence.

I don't know anything about the San Diego market, but I am jealous about the weather! I am sure you will love it sure sounds great! Hope to join you in 20! 

My wife is a mega agent in Lexington and I have been appraising here for 20 years(15 years with my own appraisal service) and we have long term rentals, and we fix and flip, and we have paint and drywall company.  With the income we have todayI think our future is pretty secure, but I appreciate the concern.

You and your wife.  That's why you are so successful and that is the secret to my success too.  To be honest my wife really does run our business and she does a great job.  She keeps track of the money and I manage the contractors and it has worked great for us.  All joking aside you are very fortunate to be in relationship with someone who is on board and supportive and really it makes a big difference.  Good luck to you all and have a great evening!