All Forum Posts by: Jon Klaus

I think your observations are on target. But I do think this current recession is deeper than you indicate:

"The unemployment rate is only 6.5%, the entire economy only declined by less than 0.5% in 2008"

Last quarter and this quarter we are definately recessing, and unemployment numbers (like foreclosures) will grow before they expand again.

That said, I agree that we are near the bottom.

What have you bought? What are you buying now?

I just put a HUD foreclosure under contract. It's a mobile home on 4 acres. There is no existing survey to be found or even a specific legal description. There is a general legal description, but that includes neighboring properties. HUD will give me title and a title policy, but no survey

Here's the twist. There is at least one additional mobile home on this property, and maybe up to 3 additional mobile homes depending on where the propertiy lines are. The additional homes are old and ratty, but could have value. Certainly the homesites/utilities infrastructure have value. HUD makes no mention of these and may not even have knowledge. So I need to order a survey...now? Closing should be in 4 weeks. How do I approach this problem/opportunity of the additional homes/squatters?

There should be good and great deals in the near future as this mess will take a while to work through the system. However, there are good and great deals TODAY. Trying to time the exact bottom is speculation. Why do that when today we are in the best buyer's market (credit not withstanding) that we have seen in our lifetimes. That is if you are younger than 80 years old.

Should you keep your powder dry? Yes, perhaps some of it. But if you get a sure high-value target in your sights, you should pull the trigger today.

I've made a couple offers this past week through a Realtor I just met. Today we looked at a property 55 miles away, so I had a good amount of time to discuss my objectives and techniques. I told her that I may make as many as 10 offers for every 1 that gets accepted. She was fine with that. It helped that she is also an investor. She also knows that she may get several of my deals over the next few months. It's worth it to work to find someone who fits your needs and style.

"Hybrid's make as much sense as your post does to most people "

Funny. Now when gas is $5, we might be able understand what David means.

Vacant homes depreciate fast--vandalism, theft, squatters, unfixed problems get worse. They cost money to manage. Propery taxes must be paid on them. Banks are in the money business, not the real estate business.

They can work well. When it becomes fully depreciated, you can junk it and move in another, using the same utility connections. In my area, you can get a 5 year old single wide with 1200SF moved in and set up for @ $15K. If it is maintained it can last for 30 years.

Check out "Lonnie deals" "land/home deals"

Jay,

is the deed transferred to the buyer at the time of the transaction? Or is the wrap like an installment sale where the deed is transferred in the future?

Also, how does the wrap differ from "subject to" financing?

I just got a Wells Fargo Mastercard statement in the mail today. It's got a $64K limit at 11.75%. I think of it like a hard money option. I haven't used it in a long time, but for the right deal...

I've called them to try to get the rate down, but no go.

There are more foreclosures pushing prices down. The banks that are taking back a record number of homes are in trouble and must liquidate. This also means lower prices. Borrowing standards are much tighter, so this too pushes prices down as there are fewer buyers with less money to spend.