All Forum Posts by: Judy Ryon

Hi John,

I just looked at one of the closed HUDS (TX) and it is in the 1300 section: "Additional Settlement Charges", ... listed as: "Sellers Obligation", then the company name the funds are being paid to. On this one it was $12,000.

Age has nothing to do with income. It depends on what you do, where you do it. Any limitations we believe we have are self imposed!

Hi KPowell,

BiggerPockets has a link to some online valuation Sites:
http://www.biggerpockets.com/house-value-comps.html

Zillow has a page (very hard to find) that gives their accuracy rating by state and there are some states that do not require the public disclosure of the sale price (Texas is one) so the values are just estimates. Since i know the ACTUAL price of the 50+ wholesales I did there last year, I compare to what gets published on these services. I have found TX to be all over the map in terms of price from the online valuations, mostly 15-20% higher than actual sales price. But knowing that I will estimate the value of a property that much lower, I look at the assessed value on the county website, then I call an appraiser from my "team", tell him what I think it's worth and get a quick valuation from him, (for FREE) because he CAN pull MLS comps, and I can't.

It's a great exchange, he helps me, and I refer any possible appraisal business to him.

thanks guys!

I called a few lenders and posed the question, because ... hey you never know... things change in the mortgage industry, but it sounded too rediculous. My broker has been debunked! She's dispensing false info...

She's my friend tho, and has been very good...

I agree Rehab702.

I made several calls to other lenders. They indicated that no CASH is needed by the SELLER to carry back financing, only documentation in escrow detailing the note rate and terms, etc.

Hi Rehab702 and r2d246.

Will you clarify your understanding of something for me.

I understand a seller carryback just as you have discribed. My mortgage broker, however, is trying to tell me that, NOW, the seller actually has to come to closing with the "carry back" amount, which sounds rediculous to me since they would just get it back at closing. She says it's the institutional lenders are making this a requirement to insure it is actually a real note and not something that just gets waived, which also sounds rediculous to me.

If I put up $10k for the 2nd, and got it back at closing (since I the seller owns the property), nothing stops me from waiving the note if I choose to at any time. What extra security was achieved by me coming to the table with cash to just get it back?

Please tell me my broker doesn't know what she is talking about and there is no such requirement from the institutional lenders

IMHO... if you are in a BUYERS market trying to sell a house for RETAIL value and you want to get the most ATTENTION on your property early on, absolutely find the best Realtor who specializes in the type of property you have for sale and pay them GENEROUSLY. (It's different when it's a SELLERS market.)

Realtors are paid on commission. If two properties are basically the same but one has a higher commission, they will push it over the other. So would I!

I would price the property competitively also not reaching for the higher dollar, unless the property is really special. Maybe even do something special that makes your house stand out... "The 50" plasma TV in the Living Room Stays!", or something that makes your house better.

Go to open houses of competing properties in the area to see what your buyers are seeing. See who has listed the properties, and experience how hard they work at the open house. If they just sit there and don't try to SELL you in some way, they'll do the same when they host your open house. You want a Realtor who will SELL for you.

In hiring the Realtor, I would get a specific performance commitment from them, detailing what they will do to market your house, ads, open houses, online postings, fliers in front of the house. Don't just settle for signing a contract, tying your property up for 6 months with a Realtor just waiting for a buyer to show up off the for sale sign.

In the past year I have done about 50 wholesales this way. Everyone of them paid out of escrow with the use of an sellers escrow demand and no questions asked.

I just looked up some HUDs... First NLC Financial, Meridias Capital, New World Mortgage, Gateway Mortgage...

Are you priced competitively?

Are the property values declining in your area?

If you are buying in a depressed area, people are leaving, no jobs, who are you renting to? Are tenants hard/easy to find?

I guess if you buy right (below market value) and if the market is declining, you need to buy that much more below value as a cushion. If the property cash flows, the tenant is paying for your house for you. This is not a horrible situation if it stays occupied. If you like the J-O-B of being a landlord then, that's ok too.

What happens if your tenants leave and you can't replace them? And you might have a hard time selling these houses too.

On the other hand there are lots of other areas in the country that are thriving, property values appreciating. I prefer to focus on those markets, and have a property manager handle the rental management.