All Forum Posts by: Keith Schellhardt

I am involved in my first Short Sale negotiation and the currnt lender to the current note holder requested that I submit a contract to purchase the property to the current note holder.

The current note holder will submit the offer to the current lender with a letter of hardship and supposedly a HUD1 settlement statement. What I dont understand is why the HUD1 statement at this time whenever we dont even know if the lender will accept offer. I thought the HUD1 was done at actual time of closing from the Title Company.

Can someone explain the correct procedure and how it works?

Thanks.

I've been approached by an individual who has several properties that supposedly is scheduled to go into ForeClosure within 30 days and is seeking help.

Indiviual expressed the following:

[b]"I am open to any suggestions. I do not want to lose the properties or
have foreclosures on my credit.

I would sell one or more properties outright at a discount.

I would take on a partner to hold and manage the properties. They were
all acquired in the past year from another wholesaler and I was hoping
to keep them for 5-10 years. I do not mind property management. I
just got behind trying to rehab the one large home. The renovation and monthly payment are killing me.

Or any other creative ideas.......make me an offer. Every house is in
a safe neighborhood with well screened tenants who pay ontime. All
homes are rehabbed, updated, and up to code. (Except the one large home which needs more work and another one which only needs paint and some carpet.)"[/b]

I need some fair and creative ways to see if I can help.....WIN-WIN situation is what I would like to offer.

Total of seven (7) houses
$1,115,000.00 still owed
$230,846.00 in supposed equity

Thank you!

So many options and soooooooo much to learn!
Keep the info coming............thanks.

GetSmart - The 203K or Home Equity loan are two that I am currently looking into.....thanks.

If you know of other "Creative" financing methods, please feel free to share. Need all the help I can get.

Looking at purchase of a SFR that needs work. Here are the approximate numbers:

Purchase house @ $25K
Cost of repairs = $40K
ARV = $90K to $98K

I am seeking input on different financing scenarios that I could possibly discuss with bank/mortgage companies. My credit score good and I am self-employed. Would be seeking stated/no doc.

Thanks.

MikeOH - I dont see where you listed mortgage note in the operating expense.............its not included?

Appreciate the info and I trust there is never cause for that to be posted under my profile name.

Thanks for the input everyone.

In reading replies and other post I find it typically stated that you should consider operating expenses to be approximately 50% of gross revenue. Could someone advice what all should be included under the term "operating expense" and are there exceptions to this rule?

John:

I did check biggerpockets RE Glossary and Abbreviations before requesting mercy. Thanks for the help!

Please be merciful and help this layman. What does NODs refer to?