All Forum Posts by: Mike Rethis

You're not alone, I am finding the same. I have went to numerous foreclosure properties that are way overpriced. I looked at a property in Berlin, house had maybe $20k with what the bank was looking for it, and it went over what I thought it would even go to. It seems as though the banks are MAKING good money foreclosing on these properties, and when they don't get enough, they pull it and keep reposting it until they get what they want or decide that's the highest they'll get.

There's such low home supply, and the demand hasn't seemed to change based on the stats (DOM has went down YOY and % of list price has went UP YOY). The people even selling distressed homes (standard sales) are asking too much. It's gonna be a long game to find the right property. Your best bet is to constantly check every day and when you find that property that you think is the one, go and see it right away; ready to make an offer. The good ones wont last.

I've been checking every single day and consistently looking at the coming soons to go see it the first day it's available to show. I saw a multi family flip in New Britain and I estimated about $50k net but I was not fast enough to put in an offer (the day I went to see it went under contract). I still put in a backup offer but oh well, better luck next time.

They're out there but far and few in between. I'm not sure if the people flipping these are delusional on the ARV or they are just going to completely hack it together and hope it sells. Good luck!

Does anyone have a recommendation of someone who would does hard money lending on a fix and flip property or a brrr?

 Thank you Bill for the advice! After going to a few tax deed auctions simply as a spectator, I decided that although it is a good idea, it's a lengthy process and is better suited for me when I have the available liquidity to not worry about my cash being tied up for months/year. 

I'm familiar with the Subject To approach broadly. I see people like Pace Morby that swear by this approach, but I'm a little skeptical to how well it works and the expected returns from it. In your experience, how is it dealing with the banks once they figure out what's going on? Do they usually figure out, and when/if they do, how hard do they press? Do you work with a lawyer that helps you with these types of deals? What kind of returns on average should people expect from a Subject To property?

 Thank you Sam! I will check her out!

Does anyone have a recommendation for an attorney in CT that can help with my REI ventures? I'm looking for somebody that is not only familiar with Real Estate law, but also an expert in setting up a business structure for me to ensure anonymity, asset protection, creative entity structures, and taxation benefits. I'm new to REI, but would like to start off on the right foot and need somebody that has a trick for everything.

Hello everyone,

My name is Mike Rethis, and I'm brand new to the Real Estate world. If you read my bio, you will learn quickly where I am at in my journey to the unforeseen future. After just getting my agents license about a month ago, I will be signing with a broker in the next few weeks. During my days working as a contractor, I am ambitiously learning every inch of real estate building for an extensive range of investment possibilities; while networking and learning from other trades. I'm 22 years old, thirsty for knowledge, and eager to attack and conquer the RE world! 

I'm sure many of you started out like me! I have a lot of money for my age, but I am nowhere ready to buy a house cash or even put 20% on a multi family house, pay the closing costs, and then pay more money for renovation. Even just 20% down on something ~$300k would be a stretch. 

I live in CT, a Tax deed states. I am looking to go to the next auction, get the lay of the land, and see what happens at these auctions. My thoughts are that if I can find a good enough deal but don't have enough liquidation, I can pool money with other people I know to make the auction happen. Worst comes to worst the owner pays the money back and we all get our money back plus interest. Best case scenario (for me of course) is that I get the deed for a greatly reduced price after 6 months. Most times I wont end up getting the property but at least I'm not losing something. I would like to buy 3 families, and take advantage of the BRRR method, but I feel the economy is not in a good position for me to be getting one at this point and time. This may be the best bet for me getting a property for under market value. I also think getting out there as an agent and doing a couple listings/buys will help me come into the BRRR method more confidently, effectively, and accurately.

Many people that have done more deals than me (>1), I value any opinion you can give to me on this thought process good or bad. Is my thought process on a good track here? What should I look out for here, and am I missing anything? 

There's 1 more thing I am hoping to clear up. Lets say for example the taxes owed on the property are only $20k but I bid to $50k, win the auction, and the seller pays me back 3 months down the road. Am I making interest on the $50k, or just the $20k owed in taxes and getting my $30k back with no interest?