All Forum Posts by: Jeff Caravalho

Apparently in a short sale the seller has a say in who gets to start going at it with the bank,(who locks it up).  My Realtor suggested I put in my offer with $1500 cash for the seller, but since we can't come out & say that, we'd say its for keeping the appliances, etc.).  My question is should I offer the seller more money ($5,000) and say it's for appliances, flooring & other building materials I saw when I did a walk thru?  Basically we're trying to entice him into choosing us.  I'd like to know your strategy for locking up a property like this.  Thx for any tips!

Delon,  I need to do one locally first.

Jesse, yes I am thinking the do more pay less strategy would be best for me.  Thx.

Thanks you all for the great tips!

Gordon,

We got in, and after running the numbers it did not pencil (lots of repairs).  I just made an offer on the property way below asking.  Not expecting to get it at all. 

What do you mean by "Confidential Notes"? Thx.

Will,  I posted this on another forum.   The general consensus was to hire my friend (like you said) and figure out a time for money split with my Dad since I will be working on the flip too.

Wayne,

Good stuff, I'm thinking sawzall...

Wayne, Thanks for the tip.  Have you ever heard of taking GC's repair list to the bank w/ pictures to justify low ball offer?

Hello BP,

I'm trying to look at my first REO, but can't work my numbers because the agent is getting static from the seller. Here is what she emailed regarding this:

I am going to give you my best advise.... If you are at all interested, you can submit an offer subject to a visual inspection of the Home, due to the lack of being able to look prior to submitting an offer.

This way it can give you a chance to get it off the Market and investigate the property/home so no other Buyer can get it. The Property will be contingent upon the Banks acceptance of your offer. At this price it will be a great deal for you. It can become a great rental, you can flip it or live in it yourself with equity after you make the repairs.

I hate the fact the the Seller is not cooperating with the showings, but eventually she will have to. Please advise as I did not want to leave you hanging.

My question is do I take her advice and submit a full offer just to tie it up?  Then have a contractor come in and pick the place apart and tell the bank we'll need to lower our offer because of all of the work that needs to be done to it (it's a fixer).  

Also, do you think this agent is working in my best interest?  Should I use her to make the offer (currently don't have an agent).

Thanks for the advice!

Andrew, make sure you research who you get your equity line from. Most banks adhere by the "Delayed financing guidelines". That is (as far as I know) they make you wait 6 mo.s to a year before you can cash out your equity line & refi your new rental. I just talked to one who got a little testy when I told her I wanted to use my HELOC to purchase property. Question to those with this experience: should you just keep your mouth shut about what you want to do with your HELOC?

John,

Great work!  Your desire to learn and hustle is a potent combination.  I like the advice on zeroing in on the more pertinent leads via your local county records.

Juan, you said. "google your county and foreclose notices. I did this recently and can see the notices for everyone going to foreclosure, with court dates 3+ months out. It's free!!"  Could you tell us how you did that in your county.  I'm finding it hard to navigate my county's site. Thanks.

Wow, this is some good stuff!  Josh, firing your friend must have been fun!  There seems to be a consensus here that taking baby steps is the way to go.  I also like the discussions on not splitting things so simply, although I would err on my dad getting a better deal than me.  Scott, what do you think a good split between my dad & I is, based on what we're contributing & how much I'll be working, ( and using friend as GC)?  Is there a rule of thumb here?  Or are there too many variables for that?  

Thank you all for the great advice, I can't tell you how much I appreciate it!