All Forum Posts by: Randy C.

I'd like your thoughts on a deal I'm pursuing.

I purchased a 7000 sqr ft property at a tax lien sale. The owners walked away and the bank which owned the mortgage now wants to redeem it from me (3-year right of redemption in Louisiana) then sell it thru an agent. Property is a former B&B in New Orleans (no flooding but it needs some cosmetic repairs). I'm inspecting it this weekend to estimate total scope of repairs. Very crude guess is maybe $30-$50K.

Bank owes me and the city $58K for back taxes. I'd like to buy it from the bank at 50% of BPO (net to the bank) then wholesale it. I expect BPO to come in at $350 - $400K.

The BPO inspection is this Monday. I will be there along with the BPO agent and my contact at the bank's REO desk. I asked to join because I read here at BP that I should be there for the BPO walk through. I've not done this before and could use any advice you can give.

My questions:
1) why should I be present for the BPO inspection? Should I try to influence them? I do know that the agent doing the inspection lists other properties by that bank.

2) I'd like to walk away from this meeting with a good idea if the bank is willing to steeply discount this property. Any tips on what questions to ask or on an approach I should take to advance my agenda?

3) I believe that after the BPO is delivered, the agent will officially list the property on the MLS. Will this decrease my changes of negotiating a deal? Any suggestions on how I might stop or slow that down?

Any other thoughts?
Thanks,
randy

thanks for the suggestion on checking out the short sale threads.

Hi, My name is Randy.
And I'm very impressed with the amount of knowledge and help you guys are sharing on this forum. I wish I had found BP years ago.

My deals so far include purchasing two rental properties (2004 and 2006), one vacant lot (2006) and three properties at tax lien sales (2008). All deals have been in New Orleans. I live in the Bay Area and have not done any deals here because I a) didn't know anything about making a profit from structuring quick-turn deals, and b) believed that since I didn't have big wads of cash, I couldn't play here.

I'm learning that I was wrong on both counts. So now, I'm reading as much as I can on prospecting for and doing short sales (suggestions on best books/sites please). I'd like to find, negotiate and wholesale them. I'm starting with one of the tax lien properties I have. Bank wants to redeem it so I'm negotiating to buy it; but I'd have to quick-turn it. I'd welcome any and all comments to this plan.

I've also partnered with a high volume, attorney backed financial wellness company that does loan mods here (among other things) in hopes that it would help me find short sale leads.

Goal is to amass a portfolio of residential multi-unit and small commercial properties delivering at least 150K free cash flow with little debt by 2014.

thanks for reading about me.