All Forum Posts by: Kama Ward

Why does wells fargo have to buy it on the courthouse steps if they are the one to foreclose?
Does the gov. reimburse them for this loan? If so, how much? The original loan, or what they paid on the courthouse steps, or something else?
I don't see any tranfer docs to HUD, does this not need to be recorded?
I'm sure I am showing my ignorance here- which is good since I know nothing about it! Ha.
I guess I am asking how HUD gets any home. What are the legal steps?

I am buying my first HUD home. I looked at the property sales record. The home started into foreclosure April of 2011. Looks like there was a private mortgage-( just regular guy's name for the deed of trust in 2008.)

Then, in Jan 2012 it was sold on the courthouse steps to wells fargo for 168K. The HUD listed it 2 wks ago for 135K. Can someone explain this?

Here's my update. The first meeting I had was pretty much meet and greet with no nitty gritty.

We finally had the second meeting last week. The realtor now wanted 40k for the lots (instead of 35k). I would have to pay for the lot up front- different from before.
The builder brought a detailed breakdown of costs- about 100 line items. I looked over them them and they looked decent. I only know some of the costs- the ones that overlap with rehabs.

The build cost ended up being 98.57sq ft. This was supposed to be the 'at cost' price, but I'm not sure what that means. He doesn't pay himself for four months? Then we would split the profit 50/50 for the first 40K and negotiable after that.

So the total I would have in it would be about 190K. The house would sell for 249K lightning fast (before finish most likely). Or we could list at 269K for a (i'm guessing) 2 month sell time.

The conclusion is I decided to pass on this deal. One of the main reasons is that the realtor and builder are new to this market (from county next door). They have done specs before, but I rather not be in with two other "first timers". I did say I'd like to follow along with what goes on there. Maybe if it goes well I will invest in the future.

If I am going to put up all the money, I want the profit. My plan is to break off a lot in the next fixer I run across that will allow for it. Then hire a builder who has been doing specs in the area. That's the right pace for me.

I moved a house once, but just on the same property. It was a 2 story from 1891 and cost 5k. There was almost no damage, but it had wood walls, so no plaster to crack.

Is the home historic or old charm? That's when buyers will still be happy to pay even if it has been moved.

There are several historic/older charm homes in my market that have been moved and then sold for a good profit.

If it has that special something and you are moving it from where it is now out of place to a neighborhood with other similar aged/sized home- do it- if the numbers work.

If it is a newer home (say 50's to now) or an average home- Do not do it. Buyers of that type of home are not interested in the history.

When I was in Austin, I saw some neighborhoods where I can imagine it working.

I'd like to get in on the one-upmanship here. My father, who is a chemical engineer, worked for the EPA for over thirty years!

I just had a chat with him to make sure and YES of course bleach kills all mold it touches! That does not mean it's best to use it.

It's dangerous for people to use, and all the other mold killers are also. They are all 'related' to regular household bleach (as Greg Sharp said).

This a case where ignorance and fear allow some hucksters to come in with either a product or service and charge more than needed.

From my reading of the EPA brochure, they are stating that bleach is not necessary to use (because it is bad for people).

I'll beat a dead horse:

1. Remove all porous materials that have mold- drywall, insulation, carpet, rotten wood, etc.

2. Fix the moisture problem!

3. Clean the hard surfaces that are left. EPA says use protective gear while you scrub with mild detergent mix (like dish soap and water). CONTROVERSY: Some people say use household bleach, some to use a specialty name brand product.

4. Let dry and repair- make sure that moisture problem is really fixed!

Molds are a part of nature, and are always floating around the air in very small, harmless quantities. (my father could quote the parts per million or billion). Don't give them a place to reproduce and get out of control.

I have a selling agent I like and a buying agent I like. I listen to them and most often agree with and take their advice.

I don't treat them like furniture- I treat them well, make them money and don't waste their time! But it took a LONG time and MANY agents to get to this point.

There are so many crappy crazy lazy agents out there, because the bar is set so low to get into the profession- we all know that. So to all you awesome agents on this forum, don't get defensive- get even- by providing great service and the clients will come running. Then you can hand off the crappy crazy buyers to those innocent newly minted agents!

The reason your agent is not putting in an offer is because he/she thinks there will not be a sale soon. Short term thinking.

Fire your agent now. Find one who does what you want- but who is also smart enough to give you the lowdown. There is no shortage of realtors. Hopefully, find one who works with investors. My lowest recent offer was 165K (about 50%) lower than asking. My agent did it and was on board with why.

Good Realtors are about service, and know it takes more than a fast sale to be successful. Even if they know this offer won't fly (that's a big IF), they should do it so you can learn your lesson- and move quickly to the next one. What's it going to take, 2-3 hours to write it and then an email/call rejection? They should be distracting you with the next thing coming down the pike.

It must be smooth here on ceiling and walls, unless it's a really low end. Patched plaster is ok too (repairs smooth) in a home from the 40's or older. I don't know a difference in price, because every drywaller does smooth.

If you get listings, get sellers to price them right, and always refer buyers to an agent friend or two (who will love you and scout deals for you- especially if they are exclusive buyer's agents)- you might be able to forget all the run around.

Having your license might be a drawback in the wholesale game, depending on disclosure in SC. You must disclose in NC, and sellers get their guard up.

If you do decide to try it, give it 12-18 months to get the processes smoothed out and your reputation up. If you are high profile enough, everyone who is in trouble will know to go to "that house buying guy". You can get someone to screen the houses/sellers, but you are still going to have to go out on the odd Saturday night because "My ex is getting out of jail tomorrow and I need to sell this house now so he can't find me."

I'm really not sure about 2-4 deals a month. Our number of mls home sales in my county last quarter averaged 44 per wk (not incl land, commercial) + guessing 5-10 non mls per wk. Guesstimate: less than 10% were investment- so let's say 4-5 investments sold per wk. If you want 1 per week, you would have to capture 20- 25% of all investments sold. Sounds tough.

Break it down for your market. If you are spoiled with your other business, it might not be worth it. Wholesaling is for the young scrappy hungry people.

If you are a residential re agent, why do you need to wholesale?

I'm just up the mountain, in Asheville NC. City pop 85k, county 230K. Most investors know each other, or at least have mutual friends. I can tell you the vast majority of homes sold to investors here are not through wholesalers. They find it themselves, or hand it to a fellow investor when it's not right for them.

Still, there is probably room for an excellent wholesaler anywhere. You can send out the postcards for leads, but you will need to do personal networking to build your buyer's list. The investors have to trust you- they will verify for sure! But trusting will make it so much easier to get that second contract. Know your buyer and what they want. Each investor will be different in what they are looking for. Just call up your 'friend' (business acquaintance) and in five minutes you will sell the property. Your deals must be really great! Do not market a thin deal!!-- if you do you will get a bad rep and the investors will dismiss you. It's not a big enough pool to be anything other than a straight shooter.

If you get what you think is a good deal, put it on this forum before you market it. People will either tear it apart, or give it a grudging nod of approval. Invaluable!

Investors will buy every good deal you can find, if you can grub them up--- but most wholesalers are just sucky no-nothing wannabees--- that is why most investors get their own deals. If you can be the 1 in 1000 person of excellence--- I'll start investing in Greenville! Ha.