All Forum Posts by: Brian M.

Curious if any of you expanded into Kankakee?  I am looking now as well.  I have 2 properties that I am looking at acquiring subject to, with the potential for more.  Wanting to understand exit strategy OR if I could/should retain them longer term.

I just talked to someone about this high level. 4x deposit is interesting b/c I can drop 100K in an account and get 400K of leverage. Rate was 5% on funds used. $2500 annual. 6% entry fee (i.e. if I put 100K in an account it costs $6000 to start in addition to the $2500/year). Some of this makes sense b/c it creates liquidity for purchase and sale transactions as long as its leveraged. I haven't gone down the path yet. If its $2500 up front to have a conversation its a non starter. If its $2500 as part of an outflow to start a line of credit it could make it make sense if used appropriately. I am looking at levering my self directed IRA with this, but if there is an up front fee that doesn't tie to something tangible its a scam. Will report back.

I have a 2 part question on deed restrictions. Here is the language in the BOA/HAFA short sale addendum (paraphrased):

No transfers for 30 calendar days. No selling for a gross sales price greater than 120% of the HAFA short sale price.

For the sake of discussion, the closing date was 2/28, the deed recording date was 3/1, the deed document date was also 3/1. The property is in Illinois.

1) Is the 30/90 days deed to deed, or deed to contract date? The buyer will likely be FHA. Can I have the property under contract on say 5/1 and close on say 6/15? The contract date would NOT be 90 days, but the closing date would (and therefore the deed recording also).

2) When I look at the deed that was recorded, there is no language regarding a transfer, or a separate recording stating these 30/90 days. Are these restrictions typically recorded? How would a title company have any visibility to how I acquired the property?

Thanks!

Thanks for the input!

@Justin - do you have a license? If so, do you use your own contract or the default Realtor contract offered by your board? What is the benefit of surrendering the commission if you are submitting the offer?

I have always surrendered commissions, and tried getting an agent to view and submit, but that interest goes away quickly after a few don't land. Even promising back side sales commission too. Maybe I just haven't found the right one. I use my license strictly for analysis.

I think I will try upping my offers at an "I'm interested" price, assume the bank will counter and THEN I will go take a look at it. That should tune the process a bit.

Lastly I have also noticed that home runs no longer exist on the MLS like they may have 3-5 years ago. I would much rather take a small profit on volume than sit idle for months for a larger one - figuring you learn something with each one, get new contacts, etc.

I am an investor with a RE license and often times submit offers on MLS listed properties. My question is about creating a better process for this.

I want to make more offers, but generally don't like to offer in the blind, so looking at several properties is cumbersome when most either sold or priced out of whack. It also seems that offers under 80% of list are ignored.

How are other investors making MLS listed offers on properties? I "could" add a contingency on property review, but don't want to burn bridges with REO agents by backing out of offers after the bank has accepted them and I then view the property and see its a money pit. Couple that with my primary area you can't "assume the worst" b/c the properties are 1950+ where most things are in tact so this strategy lands no deals.

Does anyone have a good strategy on submitting MLS offers in bulk? I really want to create a better system to land REOs.