All Forum Posts by: Justin H.

Here in Fairfield County, OH, foreclosure auctions run like this:
House is foreclosed on, appraisal done on current condition (typically ~15-20% lower than ARV)
Bidding starts at 2/3 appraised value
Winner pays required down payment right then (usually 10% but occassionally, it's only 1,000 - I think these are tax lien foreclosures)
Remainder of winning bid due on confirmed sale and transfer of deed (however long that is?)

I can easily stick to the homes with $1k down payments, but do I have any time to find a buyer to cover the remaining amount? Am I allowed to put someone else in my place ("assign a contract")? Would it be unethical to have a sales contract with the buyer contigent on a winning bid, take enough of the buyer's money for my max bid, buy the house myself and then sell it to him after I get the title? Are there seasoning requirements (I guess that depends on type of funding from end buyer)?

I do that in Ohio. I do all the legwork of lien research, property condition, ARV, and stand at the auction and bid for people. I like to stay in Fairfield county, usually you can get what you want at the price you want. Definitely good deals to be had. I figure I have to pay my dues in form of legwork to raise capital to play with the big boys!

I've seen a lot of listings on Craigslist for already rented duplexes or SFHs for dirt cheap. An example is this for $39,900:

This is a fully rented 2 family. Valued at $80k. The front unit has just been freshened up and has a newer tenant in it paying $425/month. The rear unit has a longer term tenant and they pay $400/month religiously. Each unit has 2 BR's and 1 Bath. The back unit has access to the full basement, which is partially finished with extra storage. There is ample parking to the rear of property. This is virtually a turnkey investment opportunity that could make a nice monthly car payment for you without you lifting a finger.

I'm very skeptical of these deals because why wouldn't someone keep something with such good cash flow? Or at least sell it for much closer to its value? It's just a little toooo easy...

Comments?

Justin

Thanks guys.

Any comments about the locks?

I have a seller who has their sheriff sale scheduled for mid November. He just wants to break even but hasn't paid his mortgage in at least 6 months (probably longer). His mortgage started at $137k in May 05, but now he owes $154,685.62! I figured it would be about $137k now (late fees basically negating his payments for the past 3 years), but I was obviously way off and it's no where close to a good deal. Wells Fargo also already changed the locks on the house because they thought it was vacant (somewhat common) but I told him to talk to the sheriff because the property is still his and he has rights to it until it sells. The sheriff told him to talk to Wells Fargo, who told him no keys!? I talked to Wells Fargo to find out what they need for me to have information about what's going so I'm working that but can anything be done with this small amount of time? He said he asked them about a short sale, but they said it must be posted for sale for at least 90 days before they would allow a short sale? Do they mean that the short sale must stay on the market for 90 days and take the highest offer (I've heard of this)? If they will listen to my short sale argument, should I offer $120k (outstanding balance is 154,685.62 including fees) or is $34k too much to ask and they won't even respond or listen?

Thanks for the help in advance!
Justin

Uwe, I'd be interested to follow your progress. Be sure to post up what happens and how things proceed if you do buy the property.

Sorry, in the mess of trying to figure out the weird "update" function, I must have removed it. The price is $150,000

Updated first post

Care to elaborate? Anyone that's gone through this, your story via post or PM or email or even phone call would be incredible! 6 sets of closing costs is alot though!!!

Hmmm...I'm a newb and didn't remember that rule but good stuff!

Is there an easy way to finance 6 different properties? Seems like ALOT of paperwork and time? How to bulk deals work? Am I going to have 6 closings w/ 6 sets of closing costs?