All Forum Posts by: Account Closed

Contact this guy:

https://www.biggerpockets.com/...

You have a right to know why the seller hasn't signed. Ask them or their real estate agent for an update. You have to make a decision soon. Pursue the deal (you can send a warning about specific peformance) or you can drop the deal and chase after something more likely to be successful. If they won't tell you why they haven't signed, it gets very suspicious whether they are ever going to close.

I just sold one of my highly inflated properties (because I believe we're at the highly inflated top of the market & the sky is falling and I want the cash to buy new properties when the crash hits ;-)

 I wouldn't let the agent put a lock box on the door and I had to be there when the appraiser arrived, to let him in. That is my common practice. As a result, the appraiser and I got talking and he asked how we came to the price we were selling for and how many other offers. 

I just happened to have with me 4 comps at the high end of the spectrum to give to him. It made it really easy for him to do his research and find the number we needed.  The sale closed smoothly and above market.

An appraisal is two things 1. Something the underwriter can put into the file to justify the amount of loan they approve and 2. One person's Opinion of value at a given point of time. - It's nothing more and nothing less. 

If it went to auction and no one bid, then the bank owns the property. They always bid (or almost always bid) for the amount owed and now own the property. Sometimes, they simply reschedule the sale for a future date. It just depends.

Next, You call the attorney that did the auction and ask who the winning bidder was. If it was the bank, it becomes an REO, and they will have a real estate agent do a BPO. After about a month it will appear on the MLS. You can always offer below the bank's listing amount.

There are multiple variations depending on if it was an FHA, VA, UDA, Conventional or portfolio loan. It is unlikely the "owner" now "previous owner", has anything to say about the property anymore.

The lender will look at your total debt to income ratio, reserves, employment history, credit score, amount of skin you have in the deal, if it's an arms length transaction, and will lend based on the lower of "appraisal" or "purchase and sale amount". Lying on a loan application that is backed by the government (FHA, VA, USDA) is a federal offense so be sure to be honest and clear to the lender.

All that being said, "maybe". You would have to contact a mortgage broker in your area to find out what can and can't be done by the lenders in your area and the particular property you have in mind.

None. You only need banks if you choose to not use the seller as the bank. You can in reality have as many proeprties as you care to if you are smart about it, use title, escrow, an attorney and smart financing.

I don't endorse bandit signs since they have to be replaced on an almost daily basis (they get blown over, torn down, etc) It seems you just have a temporary lack of imagination, that's all.  

Here is a list I wrote that I refer to when leads slow down. It's not all inclusive and for some of them you have to kind of figure out what I was thinking because I don't spell it out. But they are trigger thoughts for me. Some of them are  me contacting people who are in contact with people who need/want to sell., (like house cleaning services or handy men or pool guys) Some of these sources might help you. I focus on IN MO OH KY MI & TN. They might work for you in your area, too. I use investors from CA & WA for funding since they like to invest where it's affordable.

Leads List: AC Unit Repairmen, ,Accountants/CPA's, ,Adopt a Street Sign, ,Articles, ,Attorneys/Solicitors, ,Auction.com, ,Auctions, ,Auto Dealerships, ,Bandit Signs, ,Bankruptcy Court, ,Banners, ,BBB, ,Billboards, ,Bird Dogs, ,Birth Announcements, ,Bulletin Boards, ,Bus Stops, ,Business Cards, ,Car Washes, ,Carpet Cleaners, ,Charitable Donations, ,Charitable Raffles, ,Church, ,Civic Organizations, ,Code Violations, ,Cooperative (Coop) Advertising., ,Developers and Builders, ,Door Hangers, ,Door to Door Canvassing., ,Driving For Dollars, ,Expired MLS (Multiple Listing Service) Listings, ,Facebook, ,Federal State City employees, ,Festivals and Fairs, ,Financial Planners, ,Financial/Money Advisors, ,Flyers, ,Flying Banners, ,Foreclosures List, ,Free Gift, ,Free Information Report, ,Free Publicity, ,Freebie Newspaper Ads, ,Garage Sales, ,Gardeners, ,Gardening Clubs, ,Google Ads, ,Google Maps, ,Grocery Store/Department Store Carts and Benches, ,Handouts, ,Hard Money Lenders, ,Helium Balloons, ,High Tech Employers, ,Hold Seminars, ,Home and Garden Shows, ,Home Shows, ,HomeDeport & Lowes & ACE, ,Hospitals & Universities, ,Host or Co-Host a Charitable Function, ,Insurance Agents, ,Interviews, ,Investors, ,Join Community/Business Organizations, ,Joint Mailers Doctor's Bills, ,Large Employers, ,Laundromats, ,Legal Newspapers, ,http://www.listsource.com/homepage/index.htm, ,http://www.usprobateleads.com/, ,Loan Officers, ,Local Employers, ,Lyft Drivers, ,Magnet Signs for Cars, ,Mail Centers, ,Mailers, ,Mailmen, ,Marriage Announcements, ,McDonald's Sign ? Rent, ,Meet Up Groups, ,Minor Newspaper Ads, ,MLS, ,Molly Maids, ,Mortgage Brokers/Lenders, ,Movie Theater Commercials, ,Networking Clubs (Lions, Eagles, etc), ,Newspaper Weekend edition ads, ,Open Houses, ,Paper Signs, ,Pipl, ,Pizza Delivery Drivers, ,Pointer Signs, ,Pool Cleaners, ,Pre-Foreclosures, ,Probate Lists, ,Promotional Materials Calendars, Note Pads, Magnets, etc., ,Property Brochures, ,Property Managers, ,Radio, ,Real Estate Agents, ,Real Estate Magazines, ,Referrals, ,Regular TV Commercials, ,Rent to Own Stores, ,REOs, ,Restaurants, ,Restrooms, ,Grocery stores, ,Secondary Lenders., ,Shooting Ranges, ,Short Sales, ,Side of Uhaul, ,Special TV Programming, ,Spokeo, ,Sponsor a Team, ,Sponsor an Event, ,Sr. Centers, ,Superior Court, ,Talk to Neighbors, ,Tax Liens, ,Tear Off Notices, ,Telephone Poles, ,Television TV Guide, ,Title Companies/Closing Agents, ,Trade Shows, ,TShirts and Hats, ,TV Guide Newspapers, ,Twitter, ,Uber Drivers, ,Uhaul Locations, ,Vehicles, ,Visiting Nurses, ,Walking Billboards, ,Web Links and Alliances, ,Web Page, ,Wedding Announcements, ,Weekly Hotels, ,Yellow Pages, ,Your Competitors, ,Your Contractors/Vendors, ,Your Existing Occupants, ,Your Voice Mail/Tell a Friend, etc

Generally lenders will allow 35% of your monthly income to go against housing costs. So if your gross yearly income is $24,000 then your monthly income is $2,000 and 35% of that is $700. Then they take that number and do a calculation to figure the loan amount at the prevailing interest rate. 

Let's say you can get a 3% loan because you have a FICO score of 640 or better. So, $150,000 @ 3% interest for 30 years is a payment of $632 then you add property tax and insurance. If that makes the number higher than $700 a month on the  house payment you are buying, you adjust the amount borrowed downwardly. Keep in mind that you can put down as much as you want.We are talking only of the loan amount payment here. 

So, if you want to buy a $1,000,000 property and put down $850,000 you can buy a $1,000,000 property with an income of $24,000 a year. You have to prove your income and tax returns for two years, so 2019 & 2020 would work.

Join a REIA ( Real Estate Investing Group ) in your area. NationalREIA.org The one I belong to costs $15 per month. Don't join those $5,000 to $20,000 groups. You don't get anything extra for the large expense.

The average flip, according to NAR takes about 6 months and nets about $15,000 after paying everybody.

A flip involves: the money provider, everything from a handyman to a contractor depending on the scope of work, a plumber, an electrician, a painter, a sheetrock guy, a landscaper, a flooring guy, the ability to guess what a particuar property will sell for, a finish carpenter, a window guy, a roofer, an HVAC guy, a cleaning company, an exterminator, a real estate agent, an appraiser, a title company, an escrow company, brick & concrete guy, garage door guy, an inspection guy, an insulation guy, etc. Everybody gets paid. So, have lots and lots of money.

Are you ready? I have no idea. Depending on the city, the location, the weather, the time of year, how damaged the property is, how many issues with title you have, it all varies. HGTV makes it look like it's a lot of fun and takes 42 minutes of show time to make $60,000. That $60,000 is before they pay off everybody and don't believe it takes only 42 minutes to rehab a house. It takes a little longer than you plan for and then there are the surprises that make it take even longer.

But, it is fun. HGTV got that part right.

I've done flips for over 25 years and I've seen it all. ;-)

 Oh, and then don't forget your Uncle Sam. The tax on flipping income is the highest tax in real estate investing. That reduces your $15,000 profit for 6 months of work, by quite a bit.

 You say: "because the new lender will require a credit check and I would rather save my credit for my next purchase in March of 2022."

It isn't clear what you are meaning. Any traditonal lender will be doing a credit check, but a single credit check is a minor hit on your credit score. It's when they see a "lot" of inquiries that your score is affected. If a lender is saying they don't do a credit check and they are offering 2.875% interest then check and make sure they aren't scammers. Each state has a Dept of Financial Institutions or something similar that reqisters lenders. Ask the lender for their licese number and check them out before proceeding. 

If everything checks out, the remaining question is how much will it cost you to do the loan. Every lender charges fees, and you want to know how much those fees are. Then compare the fees on each loan and see how many months it takes to break even. There is a lot of information to check out before anyone can guess which is the better loan if any at all.