All Forum Posts by: Katrina P.

I just got off the phone with a Realtor whom I told I have Proof of Funds for a REO property. He asked me was it an FHA loan, and I said "no, it's transactional funding". He didn't know what I was talking about, and asked me to explain. He wanted to know if it was a cash offer, and I told him it was financing from an investor. He said, "well, your're going to need to show a bank statement from the investor, proving that the money is in the bank". He also didn't know what a back-to-back closing was. How do I handle situations like this with Realtors? How do I explain transactional funding to them when I'm asked? Is it actually cash from an investor, and will I need to show that money available? I am just getting my feet wet in this business, and learning as I go. I'm reading on this site at the fastest rate I can, but haven't come acrros this yet. Any advice?

@ Peter...I would love to add you as a colleague, but I don't know how :-\. Please tell me how to do it? Thnx!

Tracey,

I totally understand what you're saying. My dad spent many years in Real Estate, so I do know the basics a bit. My initial strategy will be to buy and flip...no rehabbing. I do have some buyers in place, so I doubt very seriously that I would get stuck with anything. I will use transactional funding, so "if", by chance, a buyer bailed, there's no money lost. Of course, I will do my best to have many buyers lined up so that I don't develop a bad reputation in the industyry. Thank you so much for your input.

Way to go Frank!! Good for you! :-)
If I may, I would like to ask you the following questions:

1. How did you finance your deal?
Cash, transactional funding, or something else.

2. Did the properties need any work, and if so, did you do the work or sell as is?

3. What formula did you use to determine your offer price?

4. What kind of property was is?
REO, HUD, FSBO, etc.

Thanks, Katrina

Tracey,

Thank you for your response. I thought that the actual price was a relative figure, and that it was more about whether the other numbers (i.e., ARV, rehab costs and my expect profit) make sense? Am I missing something here? I plan to use transactional funding, so I'm not sure what exit strategies I can implement with that particular investment strategy. Any ideas?

Also, does anyone have a list of Agents in Maryland who can submit HUD bids?

Jon,

Thank you for your response. I will definitely start watching properties and waiting on prices to lower. Thanks for the advice!

I have another question. There's another property (an REO) I found that is listed for $189,900, and the ARV is around $212,000 (no repairs needed at all). Should I try and submit an offer for about $150k? The listing Agent also told me that the Seller is paying closing costs. Does that affect the price I should offer? Also, this property has been on the market for about 60 days. I would want to use transactional funding with it. Any advice?

Hello everyone!

I am a newby to Real Estate investing. I stumbled across this website last week, and boy have I learned a LOT since being here. Thank you guys for being so willing to share your knowledge :D.

So I've been looking in the various banks' inventories of REO properties, and I found one that I'd like to bid on. It was listed for $232,000, and I think that the most recent comp was for $215k in April. When I told the Agent that I would be willing to place an offer for $150k (70% of the ARV of $215k. Since it's in move-in condition, I didn't factor in any repair costs), he basically laughed at me, and told me that offer is an "insult in this business". It made me feel really stupid. So can anyone offer me any advice concerning getting started? Are you guys getting your offers laughed at? I'm guessing that the issue is that the property was overpriced to begin with, and I should have not even told him I'd make an offer, after hearing of the comps? This Agent also told me that this particular property hadn’t gone to the foreclosure auction yet, and “when it does, you won’t see it again because the investors will snatch it upâ€. Is he just telling me anything? I also have a few other questions:

1. When using transactional funding, I don't have the option of rehabbing, right? So I can only flip by selling "as-is"?
2. Are the better deals in HUD REOs, FNMA REOs or others?
3. Are EMDs ALWAYS necessary up front? In other words, can I submit an offer, stating that "an EMD of $___ will be submitted within 48 hours of bid acceptance"?

Thanks in advance for any willingness to help!

Katrina