All Forum Posts by: Maurice George

@Jim Armitage No I have not found a solution yet. I am going to hold onto the property knowing I am going to have some capital expenditures coming soon and continue renting it. Realistically, my only expense will either be vacancy and capex

@Ron S., thanks for the input. I agree with you. And, thank you for the info about the 12.5% discount rate. Also, as you pointed out, things are different with regional banks and local banks. A local bank is MUCH less likely to forgive the deficiency, and much more willing to foreclose and take their chances on an REO sale. A regional bank is somewhat less likely to forgive the deficiency, but usually will do almost anything to avoid taking the property into inventory.

@Jacob Jones There are tons of inexpensive ways to find deals: driving for dollars, cold calling, test messaging, bandit signs (Im not a fan of these but they are inexpensive) door knocking, using bird dogs. There are several low cost things you can do. I imagine in a market as expensive as WA you will hear a lot of no’s before you hear a yes. But consistency is the key. Find sellers that have a high probability of being motivated.

I need to pay off my 12.75% note on an investment property and refinance for a longer term. Looking for options with property in my LLC name or in my name whichever works the best.

Commercial style loans - after Fannie/Freddy, you may have to go to smaller bank and take a portfolio loan instead. 

Maybe offering a 1st position lien to a private party. 

@Pete Sloa The more experience I get with judicial foreclosure and federal bankruptcy, the more I get accustomed to the idea that judges wield a lot of discretionary power and the way they wield that power is not always fair. That's just the way it is.

Just like everything in business, you need to know your customer base. If your target buyers will tend to notice FS elements and make buying decisions based on them, then yes, you should definitely take this into consideration and make appropriate business and rehab decisions based on it.

Personally, I've never had a buyer mention FS to me or my agents, so I don't believe it's an issue with my buyer demographic, but if it were, I'd definitely make sure to take it into consideration.

Marco. It’s clear that Norada has been put to the test of time (been around for over 15 years, ~10 years longer than Roofstock) and are trusted by many busy professionals who want to create passive income for themselves.

What I meant by “crappy website” is that it’s not particularly visually appealing. Your site has got all the essential features and functionalities alright. “Crappy” is a poor word choice and quite harsh now I think about it. Sorry about that. I shouldn’t judge a book by its cover. The quality of service is definitely much more important than a pretty website. But having a sleek cover design helps attract business.

One other thing I noticed as soon as I checked out Norada site was that the list price of most properties is above estimates by Redfin, Zillow, Realtor, etc. After talking with one of the Norada guys, this is what I learned:

Several years ago, most properties were renovated, delivered rent-ready, with a screened, qualified tenant in place by the time of closing. As inventory levels have tightened and competition for turnkey homes increased, more investors are willing to purchase properties in the middle of rehab (such as the majority of Roofstock listings sold as-is). That's the market climate today in about 85% of markets. There are only a handful of properties in each market that are being delivered rent-ready (Norada listings). The pricing on Norada properties reflects the ARV (post-renovation) which tends to come in at market value. The pricing data on Zillow, Redfin, etc. likely doesn't reflect properties that have been recently updated or rehabbed.

You might wanna remind your potential clients to keep this in consideration because some investors might just assume your properties are overpriced without bothering to look deeper into it.

 JC, for yourself and that Israeli investor, it is not a great idea to put money thousands of miles away. He was even careless on his money by putting money in a project thousands of miles away. 

However, on the other side, it is great to sell the property on roofstock. I may want to do it later.. 

Erica in what way did I insult you...  ???  just asking questions and giving my perspective as someone who has actually been to these events... many that post just share gossip and have never actually been to one... 

what the Arnold Palmer point is... that ALL of these TV gurus are celebs selling their endorsement power.  

also were is return on rentals are they in Chicago ??? 

this is another very much discussed point.. buying turn key homes from ANY VENDOR in the US and you have to sell in a few years a loss with occur  this is a fact. 

its no different than when you buy a fixer upper in your area and you want to sell it retail.. you as the owner operator want top dollar right... you sell it make your dough... your buyer needs to sell but your in a market that really does not appreciate they are going to take a major loss selling it.. 

Even in great markets you have sales costs and unless the home jumped in that 12 month period ALOT its going to create a loss when you go to sell..