All Forum Posts by: John Slater

@Jeremy Bernard

Would it work for you or a family member to buy the property with a new mortgage.

If so, buy the property for the value of the reverse loan balance....Not the true value of the property.  While reverse mortgages have a bad rap, it's not always doom and gloom.  I work with a lot of foreclosures on reverses and it all depends when it was taken out.  If taken out a long time ago, then chances are a lot of interest has built up over that time taking the equity.  Usually, when the bank values the property say $500, they'll give 50-60% of that value to the borrower, either in full or over time.  So 60% would be $300k.  If the loan was only a couple of years old, limited interest, the loan balance isn't $500, its $300 plus the interest.. so still a lot of equity.  Take out a reverse mortgage at the height of the market and it can be a great thing, in fact can ALWAYS be a great thing for the person taking the reverse loan, but sucks for kids and heirs usually.

Bank can't take the house back without foreclosing, depending on your state could be 120 days or longer if judicial process... 

 Yeah, door-knocking is the way for me, always has been and its what I teach.  With pre-foreclosures, you looking to work with someone who is losing their biggest asset, and likely because of some serious problem, death, divorce, job loss etc, so by going toe to toe, it allows them to see who is genuine.  Selling is still a good way to "help" someone avoid foreclosure.

@Robert Burns

If I understand you right, then I think you’re missing some points here.

Your offer is your offer. It’s not about whether your offer is above the amount owed to the lender, because if it’s not, you can’t just increase your offer higher because it fell short of the amount owed.

If you have an offer amount and it turns out to be lower than the amount owed, either the seller applies for a short sale with his lender or he looks for a higher offer.

Wholesaling a pre foreclosure is no different than any other deal when working out your numbers. Either the numbers work out or they don’t when you run whatever formula you use.

@Edward Adams

Great question, sorry I don't know the answer. But wanted to ask. When you bought the HOA lien. You knew the first was in place? How soon after you bought HOA did the first foreclosure?

Did you pay to pay off the first if you knew about it?

great stuff. I'm intrigued to know how it goes with the foreclosure mailers.  I do a lot in the pre-foreclosure area, door knocking, calling, but haven't spent much time with mailers for these.  

Hi Luke, love the attitude at your age to get started and wish I'd started a lot younger.  

For now, its about education for you and trying to meet the right people to help you understand and learn some different aspects.  One of the biggest things against you sadly is your age, and I mean just from the perspective that speaking to potential leads, homeowners, it can be difficult to be respected in real estate when so young.  Not saying there aren't things you can do, but trying to seek some guidance, local meet ups etc would be a great start to learn the different aspects of types of deals, leads, acquisition strategies and exit strategies.  Buying rentals is a great way for future wealth, but it takes capital, so many do some smaller deals to get moving, then pick up the rental when it financially makes sense.  

Hi.  If you need to credit to pay repairs etc, then taking the credit makes sense.  If you don't need the money then it might not.  I'm seeing a lot of buyers requesting credits for rate buy-down programs, taking a little extra on the mortgage but buying down interest rate from say 6 to 4 etc... thats the most common side of credits I'm seeing in my market.

Ultimately, if you need the credit why not take it.

Hi.  connect with me privately.  I can help you figure it out.  

Hi Jake, whether it financially makes sense is all about how much you're making versus having to pay out so will depend on the terms you have.  I'm assuming they'd like a little cash upfront?  not too sizable to affect taxes/retirement/disability things like that, but let's imagine 10-20k...  Leaving yo $330-$340 being financed.  Over what term?  longer the better for you obviously, and at what interest? calculate your payments now. So at say 4% over 20 years (they may not live that long so provisions in the contracts etc) you'd be paying them around 2k amount and collecting 2400 based on your new rents... sure you are paying down the equity as well paying back the loan, but be prepared thats not a lot of take home for the "repairs" etc.  plus you're out of pocket upfront so its definitely a long term plan.  Interest rate and term of paying back makes a big difference.