All Forum Posts by: Jared B.

Is the term "Yellow Letter" mean something beyond a letter that's on yellow paper?

Consider that the homeowner may not want anyone else knowing (including family that lives in the house. e.g. older children) what's going on. Be discreet.

I can't find a definitive answer on these questions. Please help.

I want to purchase an REO property at about 70% market (accepting cash offers only, as I understand it). I have $22k (13%) down and the loan would be a total of $170k (including rehab construction). I want a hard-money loan to purchase this REO, fix it, and "cash-out refinance" to pay the debt on the hard-money (85% LTV, etc). I expect to pay 2-3 points and 9% on the Hard Money. My problem so far is as follows...

If I haven't bought the property yet, then how can I secure the funds? It can't be a regular "Trust Deed" right? That would have to be afterwards, as I imagine. So how do I secure it prior to the transaction and show proof of funds in my name (or do funds have to be in my name)?

Can it be done through a standard form or would I have to write something up stating that I would only be using the money for purchase of real estate...and so on, as needed?

Help!
Thanks.

'red

I couldn't find another thread with this information. Any help would be appreciated. Thanks.

I don't understand why a seller would not consider an FHA loan. Can someone please explain?

Thanks

Close it up.

Who comes up with the mixed use development projects? I'm mean before the architect gets in there. What is the position in the REIT that decides where the money will go? I can design and build and am thinking about working next in a trust company or brokerage house. I want to come up with and/or write checks for medium sized projects - mixed-use, small hospitality, etc and am looking for direction on how to get there. Anybody have any suggestions?

Thanks

Contracting Company in Redondo Beach, established 20 years. Plans & Bids available.

Maybe they're overloaded. Anyhow, what then, is an overbid?

I'll try to make these short:

80% of what the property would be worth minus repairs. Based on what I believe the property is worth. The "appraised value" is for the banks. That number can change like the wind, as many of you have pointed out.

Up to 10% over what the big investors are doing - to ensure the deal goes through. And is a for sure win-win for both parties.

Sorry if I wasn't clear. I didn't mean overbidding at the auction, I was asking about overbid's in general. How do they work, etc. Here's some background to why this has come up...

I found a lot that I'd like to purchase. It's being auctioned Sunday. They want 10% deposit at the auction ($5k of which needs to be cashiers check or cash). I was told (by my agent) that once the auction is held anyone can go to the court and "overbid" on the property. Why bother with going to the auction then? Why would I want to tie up tens of thousands of dollars when I could just go and overbid? It doesn't seem right and I'm looking for more information on the process and what to expect.

I would love to purchase this property if the price is right. My problem is that I found out about it yesterday and the auction is Sunday. I can't pull together $35k-$45k that fast. I don't have that kind of capitol on hand. I may be able to pull in partners, especially if I have the time to do so. This is my first property purchase. I am, as they say, green.

Any information on overbid's would be appreciated. Thanks.