All Forum Posts by: Raul F.

Thanks for the input guys. You highlighted one of my main concerns with short sales Nathan, I'm glad my thought process wasn't too far off.

I think I've exhausted myself with all the reading I've been doing recently. Basically I've researched enough to feel confident enough to start putting myself out there. My concern is that I'm still not sure what I'm looking for.

For example:

I've identified a few homes in a great area that are vacant. I know from my research that the owners live across town. The problem is these homes are max 7 years old. Because of this Im assuming that I'll find myself in a short sale situation. That's what makes me nervous. I didnt anticipate dealing with short sales and I keep reading horror stories.

Am I getting this right? Do I want to stay away from young homes? Alternatively, are short sales the norm these days?

Thanks in advance.

Good advice Manny! Especially the part about investors low balling, haha. I'd like to think if everyone benefits things will go well, but you are right some will always find a way.

Jon,

Thanks for your speedy reply! I'm glad to know my math is on track, I was a bit doubtful until now.

*Edit* Looks like Chris helped me out here while I was typing, thanks Chris!*edi*

I'll start reading on short sales now to better understand that process. Thanks again!

First of all, I'd like to introduce myself and want to thank the community for the wealth of information created here. I looked around for a few days, and haven't been able to find an answer to my question, so I figured I'd ask! :D

Ok, so this is hypothetical and designed to help me understand the process to avoid hours of wasted time.

Let's assume I found a home that I wanted to put an offer on. I did my due diligence and estimated ARV at $100,000 (keeping it easy with round numbers :D). Because I read this forum, I know investors will only pay 70% of that value tops after repairs. Which means $70,000. I call my contractor, he tells me this house needs $10,000 in repairs.

This is where I get a bit lost, If it's 10K in repairs, an investor would only want to pay 60k because 60k + 10k = 70k which is 70%, correct?

Assuming I'm right, If 60K is what I can sell it for, and I want to make, let's say $3k on it. I would then offer 57K, correct?

If I am correct again, what would I do if I come to find out the current owner owes more than 57K on a mortgage? Do I call it a day and walk away?

Hey Chris, I just wanted to thank you for sharing those 2 documents. I'm in Texas, new to REI, and those 2 documents are a huge help! Especially the purchase agreement. I was originally going to try and use the 9 page 1-4 Family Sales Contract.