All Forum Posts by: Jason Farmer

@Elio L.

Its funny you asked i just wrote a post on it the other day....I sent out 460 letters, they were more professional letters with confidential stamped on them...My responce rate was a little above 50% sounds good huh?..Well every caller either said,"i will sue you if you every contact me again" or "my lawyer will be contacting you"...Most states really protects homeowners in forclosure....I was lucky no one actually went through with it, but i did get a couple complaints to the attorney general....I forget my exact criteria but i do know i spent alot of of time targeting the right leads..but I personally will never do them again its not worth the risk, there are alot of better sources of leads...

@Elio L.

angry callers are the least of your worries, its the old man whos on disability that has nothing but time to file a lawsuit for predatory sales tactics...

Short sales leads are sensitive people as they should be...Just be careful what you put in the letter, don't tell them you want to help them, don't give them legal advice, if your looking to buy their property make sure that's all you tell them.. There are laws about that, majority of short sales are likely -preforclosures...I try to tell everyone about my experience, I could have been hit hard with a lawsuit...Of course not knowing the laws and not doing enough research...

@Account Closed

Upfront appraisal..I know that can be normal in some cases..other than that everything else can be wrap into the loan..

anyway to ensure I get an honest appraisal if I cant chose the appraiser?

Just curious is see them posting here on BP just wanted to see if anyone has worked with them before.

@Tyrus Shivers

@Tyrus Shivers

@Tyrus Shivers@Tyrus Shivers

@Tyrus Shivers

Its a scam...ive seen it in and out..Alot of scammers are using HUD now a days and getting away with it..The next things she or her "lawyer" will do is call you threaten you and try to scare you, then say we can settle this for $2000....We wont sue we wont go to court...blah blah blah....And you wouldnt beleive how many people fall for it...

One of the biggest scams in Atlanta right now are scammers are going to HUD homes removing all the hud stickers, they sometimes remove the listing agents signs...and replace it with their own...and any evidence HUD owns that home.Then they put signs up on the poles "House for cheap 35k call 555-55"

Of couse people call, and they sucker people into beleiving they have multiple offers but the property can be theres if they put 2k-4k-6k down for a deposit..And of course they do it...Most of us would smell scam as soon as we looked up the property...But they prey on the weak...Anyway dont worry dude...

HUD delivers clean title, like mentioned above they are bulletproof......

@Brian Jobson

What i recently learned about this, most wholsalers say they are buyers so you send out your deal to them, they put 5k for them on there, then they send it out to thier buyers which are wholesalers, then that person puts another 5k on top of that...And it just becomes a daisy chain...5 wholesalers have touch your deal before an actual cash buyer even sees it. it went from a great deal to a no deal because 30k has been added to your original deal...

Im not a fan of any wholeslaer that sends mass emailings..sign of disaster...

@Patrick L. and @Jay Hinrichs

Great points, it just has to be your thing, and tax sales are my thing i do them in several counties throughout 2 states...I love every aspect from the auction, to seeing the deed, from the rehab to the resell. My system is solid and i spent time and money developing it. Most of the time im buying before the tax sale actually happens but thats a whole different thing in its self....

but @Jay Hinrichs after reading the original post i see where your coming from it does feel a little like that late night informercial vibe....

@Jay Hinrichs

Absolutely, they are not the best properties, we buy in LA County and Riverside County, even with properties unlivable and falling apart your always going to turn big profits in most counties in Southern Ca...

I can see how you would lose intrest they only come around once, maybe twice a year in most counties here...

Throw some of that trhow away money over here ill take it...LOL

@Chaz Reid

If we were to assume your numbers were right, its not absolutely horrible deal its just not great. I buy properties like this sometimes, that need 20k-30k rehab. But the rent demand is alot higher...Lets assume your numbers are right (which no knows unless they've been by the property) but lets just assume

Purchase $17k

Rehab $25k

Pur +Reb= $42k

ARV= $55k (modestly)

Its not ideal for a flip....

After youve done your reserach and got an appraisal and are 100% sure on ARV value..you turn around cash out refi, lets say at 50% of the value, (21k)...your looking at a mortgage of (depending on credit factor) betwen $150-$200 a month. You rent it out at $650.

Minus PM, taxes, utilites etc. you could possibly cash flow this for $300 a month and youll put $21k back into your pocket....its not the best deal on earth but its works. I do them very similar to this one...Find a local buy and hold investor and sell this as a buy and hold ONLY dont try and paint it as a sweet quick flip deal thats not reality....

And again im just assuming your numbers are correct or not too far off....