All Forum Posts by: Joanne Basecki

Thank you Shelley. Yes, this is my intro party :D

I live in San Jose only because I work here. SJ is too expensive for me to invest. I was looking at some homes in Stockton recently as a near future possibility. For now reading and learning is just really great.

Hey, Alex, thank you. Actually I was trying to follow the instruction for a proper intro. So this was a bit of a rhetoric question. :D

The actual inquiry was answered by Damien Hall at another post where I provided an example and numbers. He said:

"In your example, the only thing the investor would take into account is $50K purchase, $40K repair and the ARV. The ARV will probably need to be a little higher in order to make it a good deal. But on your end, investing $5K to make $50K is well worth it."

There was also another answer there by Steve, also very informative to me. (Title of that other post: Importance of "Skin in the deal")

Great points. Thank you. I really needed to know this.

I understand the term "skin in the deal" when it comes to a down payment a buyer makes.

I don't understand the same term at the point of sale:

Example: Let's say I paid for a property its entire price of 5K (used no loans) and the ARV is 150K.

I can see, the 5K does not seem like much here, even if it is my entire life savings. However, if indeed the numbers above are accurate, and the property needs 40K in rehab, can I still sell it to an investor for 50K? Or, will there be an issue with my "skin in the deal"?

I can see my introduction is overdue. I've been asking questions and conversing already for a while without introducing myself. Sorry for the lack of manners. No excuses. At the end I am the one who could have benefited more by starting the way most BPers do. There must always be reasons behind the rules governing group's behavior.

So here I am. Hello from California!

In June I have made a (small) REO investment, after a few years away from RE. Now I am trying to figure the next best step, probably re-inventing the wheel more often than not, instead of putting my concerns on the table to see if the experienced people here will come with suggestions.

The spread btw what I paid and the ARV is huge. Will I still be able to sell for 50% of the ARV after taking out the cost of repairs, in spite of the small initial price at purchase?. Anyway, this is what is on my mind now.

Again, I admit I did not read the BP rules at first. Thank you all for being so nice about it (:

Joanne.

Wow! This thread may have answered my biggest worry I lived with ever since I purchased from Fannie my REO in June! Shows how valuable is reading of the posts!

I do have the 90 day restriction.

I also thought of LLC as the by-pass method but my intention was to rehab and flip, at least till now. (In essence I would be partnering with whoever would provide $$ for the rehab.)

Reading this I am thinking that selling as is may be a better choice in my case; a great time saver and not much of a difference in the end profit.

But this is not all. I have done my purchase without a closing attorney and now am told by a county clerk that the deed is not yet recorded. Apparently for out of state buyers (like myself) recording would be attorney's function.

This would mean my 90 days did not even start yet? Where would I find more info on this? Fannie?

Let's assume the LLC method would take care of the waiting part. I still have one more concern when it comes to whole-selling. Actually, this particular concern was the reason why I planned to rehab and flip initially. I thought the buyer might be "turned off" by how little I paid for that REO. Could this be an issue for a buyer? (It was a cash investment but a small one) The ARV I am pretty sure I estimated correctly. Sorry if this is a bit off topic and thanks in advance for possible answers.

Hi,

I was considering but did not bid on tax certificates in Cook County, Chicago. No one bid on the units I was interested in (CC annual auction took place just a few days ago) - Would anyone know what are my options of purchase now? Also, where should I look for info on this? Thank you in advance.

(BTW, both of my certificates would have been under 10K and they could have been fixed under 5K. Therefore, yes, the 15K would have been sufficient. I don't know however how long would I wait for possession Simply did not read enough on the subject. Both units are foreclosed on.)

"The land trust is a very powerful tool for the savvy real estate investor. A land trust is a revocable, living trust used specifically for holding title to real estate. Each property is titled in a separate trust, affording maximum privacy and protection." Wm. Bronchick

Shanequa, An all inclusive deed of trust "AITD" is also known as a wrap-around loan. (If you are not familiar with wraps just google it; a handy tool in some cases, when available)

I also base much of my futuristic thoughts on Kurzweil's predictions. Use to enjoy discussions on Singularity. Considered changeable sizes of humans, from giants to nanos and not just in the virtual worlds....

But closer to here now, I think of the new building materials and how those might influence prices of RE in general, not just construction...

Also pondered on the unprecedented inflow of human creativity today and how it could influence the very game of investing. (Better understanding of psychology and the power of cooperation and so on.)