All Forum Posts by: Mark Saenz

A couple other options...
Contact the bank and try to buy the note.
Buy it at auction.

Mark

Thomas,
There isn't a standard "waiting period" for a HELOC.

Today, it's just a matter of finding a bank/company that will do the HELOC and then what LTV they are going to give you.

Everything depends on the bank these days.

Mark

Smart move not signing the affidavit! I'd start marketing privately (meaning nothing in front of the house). Just remember, you are competing with the builder if they are still trying to sell...so keep mindful of that....you don't want him/her all pissed off at you and then it's hard toget things done at your house. But if you're offering a good deal, and someone is afraid to lose it, you can get a contract early...even before it's completed. Just something to think about.

roy,
I depends on the bank; however, here is what you are most likely to see:

There will be a 1099 or 1099s issued in the year of the foreclosure.

A 1099a will be issued and this will for the individual who guaranteed the note. They will have to pay taxes on this amount.

They will also get a 1099c which is a cancelation of debt for which they will not have to pay taxes on.

The total of the two is usually close to the difference owed minus what the property was sold for at auction.

I think you can get the same for a short sale; however, this I am not 100% certain on.

Todd,
If I read your post correctly, you really are just on the hunt for a good deal right? Well, I think it's been said already, but assuming your qualified for a loan, the only think I would add is there are good deals in the regular market place right now. I have had several bids accepted on nice houses at 50-55 cents on the dollar. And some of them were move in ready...just needed some touch up; however they were loanable (meaning a bank would lend on them) now you can find great deals that aren't as siginificant;y discounted; however you may get them for .70 on the dollar from a retail seller.

Also, look to some wholesalers...they may have inventory for yu that is loanable and significantly discounted as well.

@Minette - The USDA Loan - ridiculouly great idea! I have some friends in Phoenix that sold a ton of product to people using these loans and they were all no money down.

Just a couple more ideas. The REOs can take some time to get a great deal.

Hey Ryan (fellow Texan)!

You may want to look at your paperwork and make sure you didn't sign an affidavit saying you couldn't sell for a year etc.

I know when I was buying in Cali...people were flipping new homes and banking big...the builders got wise and started making them sign affidavits because then you start competing with the builder for sales.

I'm with J. Scott on this....start marketing and get to selling!

I get a ton of buyers that are looking to buy now, but for 3 months out etc.

Good luck!

"I'll need to find a CPA to tell me more about it, as of now, I have done things only by extensive research, now with the support of this terrific site. :)"

Good idea...most of these guys will give you that sort of advice for free...over a call. Just interview them and tell them you are looking for a local CPA. IF you are going to make a business out it (which it sounds like you are) then you're gonna want to have a guy/gal like that around anyway... best of luck Amigo!

Mark

@Joel - won't you be SEOing for local business? Or are you SEOing nationally/internationally?

Hey Charley,
That's a good question and it's a question a lot of people have. The correct answer is actually going to depend on your specific situation and your future intentions. FOr example, are you planning on buying more? Are you going to rent or possibly fix and flip etc. Also, you may be using entity structure for privacy, tax planning, asset protection, etc.... so again it depends on what you are trying to do. I would sit down with your atty or cpa, possibly both...make sure they know what you want to do, and then have them advise you on the best answer for you. You make the final decison, but your team is a huge asset to your business.

BTW, I am glad you mentioned insurance, most people don't even consider this in their planning.... when I meet with my team (at least quarterly) it's my CPA, Lawyer, and Insurance agent. That is another great piece especially as you grow. Lately, it seems our world is becoming a lot more litigous with all the wrongful foreclosure stuff going around etc. so you bet we are making our insurance policy a big part of our business planning. Hope that helped and good liuck.

Both, We have a database we email; however, I call all those that have bought from us before. Give them "special treatment" because they are customers as opposed to prospects. I also know who is looking for what...so if I know I have a quick sale...you know I'm calling. Sold the last one 45 mins after I bought it (put it under contract) actually funded less than 7 days later. That was from a phone call I made from the title company office where I was closing (purchasing). That always impresses the fam :)