All Forum Posts by: Account Closed

I love playing the what If game.

So let me get this straight.....

What if you buy a house for a discounted price, don't do any repairs and put it back on the market. Then, what if the buyer gets some type of loan, lets say an FHA loan that makes it very difficult to get a competent appraisal. Then what if that appraisal drops the ball and comes in way low based on a sale that IS NOT a RETAIL TRANSACTION. Should I dump 10k into the property, raising the spread of the buy/sell causing me to need an even higher appraisal.

Seriously?

Lets get one thing straight....If the property is worth 175k, use comps to prove your point. Don't use your distressed sale as proof of what something is worth. __IF_ this magical appraisal comes in bad, deal with it then. So many variables at play nobody can tell you what to expect.

Every lender is different with overlay rules. Different types of loans also play into this. You can't even guess as to what is going to happen at this point. Also the rules in GA are far different than rules in other states. I know in FL I don't have nearly the problems that i do in GA.

If you are so hell bent on pouring money into the property, why not just "sell it" to yourself at a higher amount so that sale gets recorded. Doc stamps at less than 1% seems cheaper than 10k.

Originally posted by Brian Burke:

I've done it many times, primarily in 2009 when everyone was scared to buy any real estate so discounted property was just "falling from the trees".

I miss those days too.

means the first bid got the house....nobody thought the house was worth 110 dollars. Economy is tough right now and nobody wants the liability of having houses that are awful.

Sorry my sense of humor, ignore the top.

The bank bought it back for the first bid, nobody wanted to bother bidding since most banks disclose their final bid amount. If the house is worth 50k and they will bid up to 120k, whats the point of bidding to 40k or whatever. Hurry up lets bid on the next house.

When it falls, does the likely path involve anything of value?

Grass is always greenier. I envy those that can clock out and unplug from what happened at work and not care.

I'm 31.

Check the deed for any restrictions. But yeah, doesn't really sound like anything to worry about.

There is always a way, that being said most of you guys shouldn't be trying to skirt the law. Sure, you might even get away with it for awhile, but if you build any sort of business worth having someone may decide to "turn you in" and cause you some serious grief.

I don't understand the mentality of not wanting to get a license for people looking to play with other people's deals. Why are you trying to reinvent the wheel? Afraid of drinking a few sips of kool aid?

Also how are you protected in these transactions to actually get paid. Up front? Doesn't make sense to me. Don't expect to be on any hud's.

With that said, Henry keep in mind the platform of this forum. Sending some newbie down the road with really REALLY advanced styles of doing something will only end up with them smashing into a major problem. Can you find a pot of gold at the end of the rainbow? Sure in theory, should these newbies dig at every rainbow's end...of course not.

I'm a fannie mae broker. Out of all the banks they typically are the best at getting the most money for the property. They do authorize agents to ask for new paint/carpet before listing, and they typically list right at appraisal value. They are really pushing for O/O buyers. Very few properties that we listed ever were people attempting to flip, i didn't feel any that we sold were worth flipping. A lot of property was sold to buy/hold investors. I think we listed/sold like 75 REOs in the last year for fannie. We aren't a primary broker in my area, but my broker's office handles a bunch of them.

I've never really seen huge discounts taken from list price, and i've never really felt fannie mae was a great resource for investors looking to flip. With that said, they use auction.com as a dumping ground when property starts to get some age on it.

I've been part of 2 auction.com flips. None of which were that spectacular but were worth doing.

Originally posted by Eddie P.:

I am dealing with a purchase now where the underwriter will not issue a tittle policy because on a previous transfer of the property the notary, witness and the seller had the same, very uncommon, last name.

Eddie, try to push that through a different title company with a different underwriter. First American for example is HORRIBLE to deal with when it comes to foreclosures and writing a new policy. I don't think they will even write a policy on anything with taylor bean and whitaker involved. Not to say i blame them, but it causes headaches. Other underwriters are a little more, umm liberal. I've had deals slam into brick walls over lame paperwork issues 15+ years ago and 3 sales back, moved the deal and life was fine again.

Or track down the original owner and have them sign whatever the underwriter needs. If the name isn't common you should make short work of finding them.

Never been a huge fan of picking up a deal from another investor. Huge red flag... Keep us posted, hope you dodge this bullet.

timeo Danaos et dona ferentis.