All Forum Posts by: Janette Olano

@John Della Bella I have been trying to get a phone call (requested for phone chats and left VMs) with an account specialist from LendingOne for a week now and still haven't heard back from my supposedly account specialist. I have submitted my application online but I have several questions I would like to clarify. Is there a way I can have a different account manager and get the conversation go a little bit faster?

I have experience on both lenders...

As far as my experience go, I will avoid dohardmoney. I have had 2 buyers who tried to use dohardmoney. At both times, it took more than 60 days before they got back to us informing us that they will not fund the loan.  I agree with @Shedrick Nettles, they will just ask you to spend money on BPOs and unusual inspections, which will take more time than normal, only to decline the loan at the very end. At both times, the properties were really good deals and I was able to sell them immediately to other buyers after the buyers using dohardmoney could not get financing. I  now make sure not to accept anymore offer from buyers using dohardmoney--I would always ask them to use another lender if possible.

As for AngelOak, I've used them twice on my own investments and have not had any issues at all. Both times, they were very helpful, responsive, and closed quickly. As long as you have the credit and reserves required, you shouldn't have any problem with them.

@Jay Hinrichs whenever I advertise it, I always disclose in my ad that it is a HUD property that I have under contract and have a link back to my website explaining the whole process.

@Jay Hinrichs we don't assign the contract. We add the buyer as purchaser in the original sales contract with HUD and then we sign a quit claim deed at the closing table.

Thanks a lot everyone for the advise! So here's the update, I just called HUD and he confirmed what you guys told me--we're not allowed to market it publicly until after we close. So we're taking down all the Craigslist ad on it and all will be good.

The reason we had to advertise in CL is because we have just started in the wholesaling business so we don't really have much investor contacts. The properties I get from HUD are always good deals (I only get the ones that follow the rule, purchase price = ARV x 60% - rehab cost - wholesale fee) but it doesn't help that they are mostly outside the metro area... areas that most investors are not interested in so there's that :) .

Anyway, I can definitely get a hard money lender to finance the closing for it but the closing cost for it would just eat up the wholesale profit. I already have 3 rehab properties in the pipeline so I don't have bandwidth/capacity for another flip.

After a lot of thinking, I think I came up with 2 possible solutions if I don't find a buyer for it soon enough. I have always been frustrated not having enough cash reserves to close on these properties with my own funds and wholesale or flip them as I please. So, I think I'll make use of it's equity to increase my personal reserves-- the property has a lot of potential equity (I've listed it for $82K, calculated ARV is $200K+).

Option 1:

I'll close on it with a hard money lender, do a minimum fix and rent it out w/ lease purchase option. Then, after 6 months, I'll do a max cash out refinance for it. This option is quick and easy but will cost me quite a bit in those 6 months with the interest.

Option 2:

Just a warning, I'm not sure yet how viable this will be but here it is... partner with someone to get a HomeStyle renovation loan on it. He will be the only one in the loan, both our names will be in the title, but I'll pay all the closing costs. There will be no cost at all for him. I will offer him 6% APR on the purchase price while I do the mortgage payments. After 6 months, I do cash-out refinance and pay him $2K at the closing table. What do you guys think? Will this kind of deal work?

*the reason I cant get the homestyle renovation loan is because my DTI won't qualify at the moment.

Anyway, I'll see which one works and update this thread.

@Sarah Ottesen you won't find list price in the Bid Results. What you can do is look at the property's price history in Zillow and compare the most recent listed price just before it got sold.

So, I got this huge, beautiful house under contract from HUD. I intend to wholesale the property and so I listed it in Craigslist. By far this has been the most popular property I've listed--I got the property for so cheap that I keep getting numerous calls from retail buyers and a few from investors.

A week after it was listed, I got a missed call from Sage Acquisitions informing me that someone reported to them that this property is being sold in Craigslist and if we don't stop they will send us a cease and desist order.

I'm a little bit at loss as to what to tell them when I call them back. I would love to close on the property but I just don't have enough cash for it. If you are in my position, will you just let go of the property? 

You need to be affiliated with a broker to be able to perform as an agent. Pick a broker that is not a listing broker for HUD and make sure they are a registered selling broker in HUD (has NAID). My broker is such and I bid on HUD properties all the time for myself.

I agree with @Harry Metzinger ... customer service responsiveness is not exactly Sage's best asset. I filed an extension for a contract and I got the extension approval notification on the day it expired.. so I had to file another contract extension... 

Awesome flip deal in Albany, GA. Property is in great shape and needs only minor repairs/upgrades. It has an in-ground pool at the back, a big fenced-in backyard, and a landscape that's just aching with gorgeous potential. Property has a long driveway (can easily fit 10 cars!) and 2-car carport on the back of the house. It has plenty of fine cabinetry in the kitchen as well as ceramic tiling and hardwood floors both in the living room and in the spacious sun room. Peruse through the pictures in the link provided below to see just how great a deal this is.

Property has very strong comps within a half mile, all sold in the last 6 months

You can view all the comps details, pictures, etc here.