All Forum Posts by: Jeremy England

I don't think its the money, because of buyers agents commissions being offered to fsbo.  No i'd say its more just being placed last on the list of showings because you aren't represented by an agent.  

If a buyers agent has a client fly in have a list of 10 houses for a client to see, I thnk that fsbo is not high on that list.  Its like a form of protectionism for the profession.  

Just my impression of the experience.  

Thanks for the input.  I'll watch and wait.  If I'm right, the home won't sell for the starting auction price and the bank will have to relist it on the auction or begin to take offers.  

So there is a property on hubzu I'm interested in. REO auction that starts at 99k. ARV about 155k. Initially I thought it was a great prospect. Went by the house and estimated repairs to be about 26k.

Take away buying costs of 5pct plus title insurance etc (about 6-7k)

Take away holding costs of 3k

Take away selling costs of 11k

Take away minimum profit of 15k

Max offer 93k

Property is in a great neighborhood and LOOKS like its a paint/carpet rehab from the pics 

However, roof is 20 years old, ac condenser is 20 years old.  The roof LOOKS ok, but Im hearing appraisers are reducing values if the roof is 20 years old.  If I don't do the roof I could save about 4-5k

garage door needs to be fixed/replaced, windows need fixed/ replaced, appliances/cabinets need replaced, 2 exterior doors need replacing.  

Cabinets look ok from outside but they obviously had plumbing leaks and the interior of teh cabinets are all warped.  To sell for top dollar I think they need replacing.  Perhaps if you refinish the cabinets you save 2k

I could replace SOME light fixtures and save about 1000 probably, vs replacing all fixtures.  I could do the work myself and save another 500 probably.  Now we are talking time.  

So, If i cut some nice to haves out  I may be able to save 10k, but then I risk not getting as much on resale

That would put my MAO at 103k.

This house can be conventionally financed as well.  An owner occupant has a huge advantage because they don't pay selling costs or profit.  

Question would be if the bank would take an offer outside of the auction.  

I sold a property fsbo. Paid a broker to get it on the mls.  

It was professionally done.  Staging, looked great, smelled great, on a lockbox etc. 

Thats not enough though. Realtors will discriminate against you because you are fsbo. Its like a union thing. They’ll show their buyers other properties and put yours last on their list.  

We sold that property but it took twice as long as normal for that market.  I also don’t know if a realtor could have got us enough money to make up for their commission

6 pct of that transaction was like 25k

We paid 3 pct anyway for a buyers agent commission

So the issue was could a realtor have got us another 13k. Probably. 

I dont think i would view it any different than any other rental unit. There are noise ordnances in most munis.  If someone is violating them then they can be cited like any other person.  

I go to grad school online and get a va check to do it.  Tax free.  going to use the money to buy a property.  

Do alot with my hands.  cars, boats, home improvement.  Not much i'll hire people to do, unless there is tim sensitivity.  

I think much of that is dependent on risk tolerance. Some people are fine with being in a million bucks debt if theyre getting More than that in rent.  Some want to own free and clear the moment they buy it.  

, im less risk averse than my wife.  But i also have to live with her

From a deal generation standpoint, @Anson Young's book on Finding and Funding deals is awesome.  Not much gets left out of it with regards to the different methods of getting deals.

 That does leave a wide door open for financing.  Not the case here unless I'm misinterpreting it.  This is from the local county website on auctions.

" if a party other than the creditor is the successful bidder, an immediate deposit of 5% of the bid is required. The balance of the bid and court registry fees (3% on the first $500.00 and 1.5% on the balance), must be received by 5:00p.m. on the day of the sale. Payment must be in the form of cash, certified check, or cashier’s check payable to Pam Childers, Clerk Circuit Court - NO personal checks or promissory notes."

@Darrell D. It seems the accepted practice is either cash or private money for the trustee sales. And according to jay those HML that do are regional and require premium points and apr for the money. It doesnt seem like HML would be a viable option for the auction, even if it can be done.

This eliminates alot of competition for the auction properties.