All Forum Posts by: Phil S.

I do believe that the banks are holding back together as a whole. It seems all these continued meetings in Washington have something to do with what is still going on. As a whole, it seems to be stabilizing the home values. But how will the rest be introduced again into the market without causing another influx? Or will the market at that time be able to withstand it?

Those other companies buying everything up as @Tim Breems has said is putting a damper on smaller investors making most of us to look for other areas to continue to grow our portfolios as well. I don't see that slowing down at all because of the great value they are picking these properties up for. I read somewhere that bigger investment firms such as Berkshire Hathaway is on the verge of doing the same.

Thanks all for all the great replies. The zombie mortgages in only two Chicago neighborhoods seem to be the worst. Englewood and Roseland. The banks don't see the upside in foreclosing all the way because the costs to finish the foreclosure is more then what the current value of the property is worth. Even though the current values will return to past values over time because of the rental income these properties bring in, the banks still refuse to complete the process. Here is the story: http://wgntv.com/2013/04/15/how-to-avoid-zombie-mortgages/#xQAI3XkHhGPS4TGV.01

What do you guys think about banks still holding onto some REO's? I think here in Chicago that this is true as well as a few other investors in my area. Looking for an overall view of the situation though from around the country as well.

That timing factor for my flipping led me to become a landlord pretty quick when I couldn't flip any more. Had to make lemonade from lemons!

Hey Wilson, Something that helped me TREMEDOUSLY when I first started was to find a local Real Estate Group in my area as well. You can look at meetup.com or several other meetup type sites that get you in front of successful people doing what you like to do. Actually talking to other positive people in your field does wonders for getting to your goals that much quicker! Hope this helps and good luck, even though it seems that you won't need that.

That was my experience as well in Chicago here. I had to look a little farther into other markets to find a better deal. It was in a better rental area as well. Don't think that you can own all of your rental properties that will get you to your real estate goals within the current living area of your home.

100% agree with Micheal Wagner on this one. I never had a renter that cared what the washer and dryer looked liked, just that they worked. If they are good tenants, I would gladly buy them a brand new one if they were going to stay in my place and pay the rent on time to extend the lease! Anything to keep good tenants.

Bought my first SF foreclosure in 2003 and it was an incomplete house. Walls were all up, but the past owners recently gutted the whole house and then I guess planned on remodeling but never did. After purchasing, we finally got access into the garage which was locked up, boarded up, and nailed and screwed shut only to find all the materials needed to finish the entire house! I had planned to spend $25k on the rehab and used about $3K of that budget instead. That was my first and last great find.

Another way to find the answer to a local question is my real estate group meetings. I found mine through Meetup.com. Meeting other like minded individuals with more experience than you have was the place for a successful beginning for my REI career.

For a starting investor, get a few SFR under your belt. In my area right now, they are undervalued because of all the foreclosures and give you a great balance to use as collateral to buy the MF's. Let them do the heavy lifting to get to your real estate goals quickly.