All Forum Posts by: Account Closed

If the 2nd appraisal was not thrown out I would of moved the file to a new lender. The FHA case number would of been moved with the original first appraisal (tied to the property for 6 months). The 2nd is not tied. So in my case, i would of been fine. If the new lender had a problem, i in theory could repeat till i got a fair 2nd appraisal. Keep in mind, I was actually selling at market value, not some inflated pipe dream. The reason the lender tossed it out was because the 2nd appraisal made no sense.

If in theory the first appraisal would of came in low and the lender refused to throw it out I would of been unable to sell to a FHA buyer for 6 months unless i could get a new lender to toss it out. I've never experienced that situation since most first appraisals are done with more known appraisers to the lender. But i'll admit that life has it's gambles.

I'm not special, the entire FHA system didn't bend to my will. It can be done, others are doing it. My expectation is your area is simply different, or you don't push hard enough. I'd wager the guy that originally posted this thread doesn't care about what we are saying though. I hope someone else one day benefits from it.

Gross...not net

They can't know net numbers.

I bought a property at the end of 2011 for 83k and then flipped it 120 days later for 140k. We put less than 1000 into the property for repairs and I didn't even bother to use new pictures when we relisted the property for sale. We signed the contract on the 91st day and it closed 30 days later. An FHA deal. I didn't pick the lender, the buyer had her own agent. At 200 miles away it was far more than "At arms length". (if you aren't laughing i'll keep trying)

We were required to get 2 appraisals, the first was fine. The 2nd came in at what I paid for the property, i had to fight that for about a week, had it thrown out and then the 3rd appraisal came in over the sales amount. We closed.

I'll agree that my experience in GA has been far different. My only point to this entire thread is before this guy dumps 10k into the property "fluffing it up", he might as well give it a go and see if he even needs to worry about any of this. First day he could see cash, he could see a hard money loan. He could owner finance it to some guy putting down 50% or he might have a lender like I had that finds a way to make the deal work. Nobody knows what deal will actually happen. What i do know is everyone is telling this guy to sacrifice 10k to the real estate gods which causes me to get annoyed. Not sure why since its not my 10k, but whatever.

Scott, we do things way different and I'm sure we can both agree that we find the other annoying. I'm not ever going to say I do things better than you, your transactions I'm sure are much cleaner and you are leaving your end buyer with a very good quality finished product. You also have a very defined model that you repeat over and over. I don't see what this guy is asking for is really part of what you do. How often do you even try to do an FHA deal without repairs?

My style is much different and I've experienced a lot of different types of transactions with usually different players each time. I've also done triple your volume over the last 3 years that you have been doing this. Each deal has a different lender for me, each deal has a new title company. Each deal has a new set of local customs. My life is full of frustration, i think i enjoy it. I think you are so set in your model that you forget there is so much wiggle room in this industry if you know where and how hard to push. To me the benefit of this forum is learning where and how hard you can push. I still don't know everything. Each year i look back and only am amazed at the things i've learned and the things i've done. I also kick myself for not doing those new "tricks" years ago. I wonder in 20 years what i'll be able to do. It scares me to think how much better i'll be.

To my eyes this entire back and forth between us is based on our styles. You want a smooth transaction that you come out as the nice guy. I want to close with as much profit as possible while still being fair. If it causes me extra frustration and drama and I make the lender work a little harder, I'm ok with it. If the lender/title company/other realtor/buyer/some random dude on a forum thinks i'm an ******* at the end of the day, I'm ok with that too. This is not a hobby for me.

Sorry in advance for my rambles, the board doesn't pay me enough to reread my posts for grammar/spelling.

Story time over, get back to looking for the next deal!

In that situation, wholesaler D at 75k or you walk from the deal. You would walk?

Jeff, what makes you think the agent has 160k, or would even want to do that deal. 160k in and reselling it for 185k is a pretty slim margin after closing costs the next go around. I flip houses 99% of the time, i look at people like they have 3 eyes when they ask me to rent it to them. I flip, not rent. Would be like asking a car salesman to allow you to rent the new car for a few weeks while you are in town. I get what your saying that there might be other solutions but i'm sure this guy wants the lump sum to play with and redeploy asap.

For the sake of being silly. What if the property was worth 130k? You really going to tell us you won't buy it from wholesale B? Or wholesale D at 75k. Or wholesale E at 80k. Just numbers on a page, get the emotion out of it.

Though I'm never excited when this happens, i've had it happen to me a few times too. I've also had people attempt to do it and fell on their face with an over improved property still on the market 180 days later.

After much reflection over the past months I've realized that when I sell "wholesale" to a cash buyer and he waits it out to get a retail buyer at a better margin i have nothing to complain about. I'm not even sure if i did anything that was "wrong". Not all property should be taken to the highest potential. Sometimes the risk/cost just isn't worth it. Nobody has a perfectly clear crystal ball.

Least that is my 2 cents, i'm sure scott will disagree with something I said.

Words can't express how much I agree with the above.

http://portal.hud.gov/hudportal/HUD?src=/press/press_releases_media_advisories/2011/HUDNo.11-292

If you intend to sell to a FHA buyer, sign the contract on the 91st day you own the property.

Yes kyle use a title company. Less you want to play russian roulette with an unknown amount of bullets. Using a realtor and using a title company is two very different things.

If you knew exactly how to do a title search, I'd maybe say it's not worth the cost. Being as you don't know how to do a title search (nor can 99.9% of this forum do it correctly) i'd say there is no question but to use a title company.