All Forum Posts by: Adrian Pillow

Thanks for the info!

I will definitely buy the book... Seems like a lot of RE books are poor in writing style, but as long as the info is there I do not care :)

A lot of people have reported positive feedback on MikeOH's book as well... So I will probably buy it as well.

In my mind the books are excellent reference material as well, so they pay for themselves again and again.

... Plus books are cheap compared to a lot of these seminars and clinics... Which all seem to get mixed reviews from the people who are into RE. My guess is that the seminars are for newbies to milk some $ out of them.

Thanks!

As a newbie I came in strong on the Flip idea... But most people here seem to push rentals as a way to really make a sustaining income.

With some of the deals out there I can see coming into a transaction and being immediately in the Black on a rental! Which is very exciting and opens new horizons to my investment strategy... Granted rental in my mind = stress to get people to sign the rental agreements.

... Which leads to Section 8 housing. Guaranteed income and guaranteed renters... The bad of course is that you are dealing with low low income tenants and neighborhoods which can be risky.

Is there any books or web info related to Section 8 that is of value? Pros / Cons of such properties?

Thanks!

Great feedback!

I did not think to ask about other offers that may have come in! Good thing to think about for next discussion.

As for comps, I am very familiar with the neighborhood and know what number work on the property. Which is good, because some neighborhoods I wouldn't have a clue without running numbers.

Newbie? What does the CW stand for?

I agree that it might be better presented with a written offer from a Realtor. This should not be a problem either. Two friends are just starting out as realtors and are hungry, and one more friend who is more established and would write it up anyway if I ask him to.

In this market I think the deals are out there, it is just a matter of getting the owners and REOs motivated enough to make the deals.

Thanks!!!

Well I have been doing the homework and hitting the streets. :)

I found two properties which meet my low standards. Single family on a decent size lot (1 acre) in blue collar neighborhoods that need work.

One is priced right from the start with an eager realtor. 230K REO needs landscaping and exterior wood repair... Probably new garage doors as well. I figure after negotiations I could make some money on this one and sell it for 250K. Granted I still need to be between 150-175 for the numbers to comply.

The second is a heavier remodel as it is completely outdated inside... Hideous 70s stuff throughout! REO priced at 299K, but a real street value needs to be closer to 150K. I spoke with the listing agent and found that Countrywide owns it... She was a real B!tch and did not even want to look at an offer in the 150K range. Bad attitude all over the place on her side. Granted this is on a nice lot and would be easier to resell.

I am not sure if I really have a question, but just want to see if I am on the right track or just crazy.

... I received a list of short sales and REOs from a realtor contact that I need to go through as well... Crazy good prices! BUT might be ghetto-riffic. Got go see to tell.

Thanks,

Tim, that is an excellent idea. Now sell it to A&E and make some $ off it :)

If it is primary residence you will really want to stay in it 2 years for the tax benefit. That being said, choose wisely as it will not be a quick flip.

Also, be patient... The prices still have a ways to go down before it is settled.

Do your leg work now and then when the time is right, go for it!

Pay off your debt. It is a sure investment.

I have to assume that you are referring to credit card debt..?

Thanks for the info REI. I can see where you are stearing me on the reply. Answer the "whys" and the equity line will make more sence to the bank.

The line of credit will be for rehab costs (to Color Inc) and mortgage payments. The mortgages will be through another vendor. So yes, money will only be taken when needed.

OT: I am near Washington DC which is on the opposite coast from Portland. So roughly 3000 miles away :)

The mortgage industry is still a joke.

I am closing tomorrow on a refi on my house with basically unverified income and holdings. All they did was run a credit check and appraised the house! Granted we have A+ credit and <60% LV on the house, so it is a no brainer. I got them to throw the escrow out as well for free.

FWIW 30 yr fix 5.625% nothing special. (I was a day late on the 5.375 bottoming out :( ) We ended up liking this house and have to get out of the 5-yr 5.75% interest only product we have now. I do not care what the "pros" say, an interest only fixed rate has a good nitch to fill in the marketplace.

With all the hype in the news I expected to have to go through all sorts of red tape and forms before even getting close to a loan! All in all, nothing has changed from my way of seeing it.

In setting up the new investment company I will need to come up with a business model and some form of profit projections before the bank will issue a business line of credit to me... Does anyone have some good examples that I could view?

I know no one persons goals/model are going to be the same, but it would be nice to see other views on the topic and how you all arranged bank financing.

Do not get me wrong this is not for a mortgage, just for the business working capital.

FWIW the bank is very eager to see the business model and establish a line of credit... This blew me away as I thought they would boo hoo me right off the bat for a real estate investment company in this market. It is a local bank and they know me (I have my other business banking setup there already, just business checking though), so that might make a difference as well.

Thanks!