All Forum Posts by: Joe Kling

Hey BP

I was looking at a HUD property this weekend and when I went back to the website (www.hudhomestore.com) and the listing was gone. I assumed a bid was accepted so I searched for it under the bid results tab. The case number wasn't found. The property isn't listed anywhere on the HUD website.

Has anyone experienced this? 

Joe

@Sylvia B. Yes. I should have been more explicit. You are correct. 

@Wayne V. I'd guess 2 or 2.5 feet. 

@Frank R. That's good to hear. Is there a trade off? I.e. easier to work on but more issues with flooring or anything else? 

Joe

Hey BP!

I've been looking around Los Angeles and I see that many of the older homes are built on raised foundations. Is there anything to look out for with raised foundations? It feels hollow when I walk on one of these floors. General thoughts would be appreciated on this topic but I have one specific question.  If I were to want to add an addition is it easier or more difficult than with a standard foundation?

Thanks everyone! 

Hi @Mike Moyer.

I want to piggyback on what @Patricia Bowler was saying.  If the conservative deal is a good one (and it seems so from what you've written), pursue it.  You state that you have $150k to invest and that the owner of the more aggressive deal wants $300k down.  You're going to need a personal loan for the purchase and then an investor to complete the development.  Continue to pursue the aggressive deal and if you can make it happen with the ~$100K you have left, then do it.

I wouldn't hold off on a cash flowing opportunity just to hold on to the extra cash hoping that you will get the other deal worked out.  Chances are if you can raise the money to get the more lucrative deal done, you can do it whether you start with $150 or you start with $112.5k.

Joe 

Hey @John S.

The PDF is not a real estate term it is the document that you can print out from your computer.  .pdf is just the extension of the file, so the term "PDF" is synonymous with printout.

Hi @Juan Carlos Valdes,

What are the market vacancy rates in your area?  It looks like your REA used 5%.  Is that accurate?   Also, where is the electricity amount coming from?  Are you paying the electricity bill for the whole property?  $15 seems low, but I don't know the rates in your area.  Might be worth checking.  

The most important thing you can do is to be comfortable with your transaction.  It is understandable to want to be reassured, but in your post you state that you don't think it is a good deal.  If that's the case, move on and find a deal that you believe in.  If you love the property, but the asking price is too high, make a lower offer.  Don't just commit to a deal because the REA says it is a good deal.  

Good luck!  Let us know how it plays out!

Joe  

That's great to hear @Peter Silvestry!  Congratulations!

Did you think at all of leaving the basement unfinished?  Reason I ask is that I am from CA, so we don't have basements, but I was listening to the BP podcasts (I forget which one) and one of the guests was saying that he leaves his basements unfinished.  I plan on purchasing some homes in the mid-west and I want to find out if you thought through the basement finishing?  What were the pro's and con's of doing the finishing?

Joe  

Hi @Myles Ngumezi.  

Have you approached the seller and gone to look at the property?  While looking at it you might want to ask some questions that could give your strategy more of a direction.  

Why is the seller looking to sell?  Your strategy will be different if you are dealing with an investor who is looking to move on to another opportunity versus if the seller is going through a divorce.  With the investor, you might want to use some of the tools here on BP to lay out a professionally developed plan and show them that they could earn an attractive return if they were willing to carry the property.  The couple going through the divorce might be more interested in getting out of the property ASAP to move on with their lives.  They might be more willing to take a lower offer.  

We can lay out an infinite number of hypothetical examples and what you could do, but the common theme is that you should try to understand what the seller wants out of the situation and find a way to fulfill that need.  Even when you're looking to buy a property you're still selling; you're selling your offer.  That offer needs to fill a need or remove a burden from the seller.

Good luck!!!  Let us know what happens.

Joe   

Thanks for the tip @Michelle Watt.  I am thinking that I will need to purchase out of state, but I'd like to meet with local investors to hear lots of view points on this.  I'll look them up and try to get to the next meet.

Thanks @Mark Nolan.  Nice to meet you!

Hi @Laura Fahey.  I am certain I will need to know a good investor friendly realtor if I decide to stay in the area.  I'm sure I'll have some questions for you.

Thanks @Dmitriy Fomichenko.  Do you attend meets in the Los Angeles area or Orange County?  Which of the two markets do you focus on?

Thanks @James Wise!  Nothing can be gained beating yourself up about past obstacles. If you want your situation to improve you've got to improve it.