All Forum Posts by: Chris Ukachukwu

Frank,
Sounds like you are only in the Houston, Tx area. Do you have a network that extends beyond?

Hello Christy,
I just joined this group a little over a week ago and coming across your post is already worth the price of admission. :lol:

If there's a "hall of fame" of posts, this belongs there. It carefully touched on everything.

One thing I wish you had dealt with a little more deeply is the question of "reasonable compensation" for a bird-dog. The two instances you gave seemed to be extreme on both ends: the dweeb that wanted $50,000 on an $800,000 spread with NONE OF HIS CAPITAL on the line should stop smoking illegal stuff and your fee of $5000 on a $100,000 spread seems a bit on the low side. Either way, you want everyone's motivation to stay optimal. What should be a good middle-of-the-road % rate of compensation for a bird-dog in an average deal?

Chris

Great advice from Ryan. One we all need to learn, relearn and remember.

I started out in real estate investing with NO acknowledgement of fear and although I'm nowhere near The Donald's prowess, I have no regrets.

Coincidentally, I got in around the S&L crash of the late 80s. I kick myself to this day about all the spectacular opportunities I let slip from my inexperienced fingers. In the past 7 years or so, I was thrown off track and fear has kept me from jumping right back in sooner but I'm ready to give it another go.

No matter how "saturated" the market is, people are making a ton of money in every real estate market EVERYDAY! How I become one of them? That is the question!

Chris

Thanks a bunch for the warm welcome Wesley & Ryan. I feel I have been guided to the right place.

I thought I knew almost everything about real estate but I don't know about wholesaling. Locally, there are a few companies that acquire distressed properties somehow (I don't know how) and re-assign it on a short-term fincance (46, 60 or 90 days) to the end buyer. They are just the middleman who carry the buyer for the stated period until he/she fix up the property enought to get their own mortgage. If the buyers don't fulfill their fixup/purchase obligations, the property reverts back to the middleman. I haven't tried to find out the specifics of their business.
Is this what wholesaling is?

Do you need a R.E. license for wholesaling? Do you need a good monetary reserve? Please educate me.

I try to be resourceful. I will survive the job loss. Between looking for temp assignments, sub. teaching etc. I'll try to keep the bills paid but I want to focus on making a forward financial leap. The Chicago R.E. market has peaked and therefore it is rare to come across any decent investment deals but I see properties about 50 miles outside of this immediate market that look like great opportunities but I don't have good money reserve or good credit.

I think Joseph (foreclosure boy) is mixing up the sheriff's sale (REO) and the county's delinquent tax sale. In the first case, all sales are final and in most cases you deposit up to 25% on the spot and you have 24 or 48 hours to pay the entire balance you bid or lose your deposit. In a few cases, you are required to pay right there. If the bank's bid (usually the gross amount owed them) is higher than everyone else. the bank gets it back. Technically, that's when it becomes truly real-estate-owned (REO).

In the second case, the delinquent tax sales, you are buying the "ownership rights" to the property deed in the amount of delinquent county real estate taxes owed on the property. You don't own the property, if the property owner cures the delinquency within the 1 year period, case is closed. You get back the money you paid plus stated interest (10% in your case). If the delinquency is not cured within the 1yr time the property is not automatically yours, you still have to do "due dilligence" before the property can be yours. Most properties in tax default are reclaimed. Not many people would lose $300,000 property over say, $10,000 tax.

Chris

My name is Chris and I'm right outside of Chicago. I've been a passive real estate enthusiast (is this a great oxymoron or what?).

Anyway, I own a couple of low-end properties but now I want to wake up and blossom and explode (in a good sense, of course).

I've played 'stalker' to the real estate business: been to sheriff's R.E. (REO) auctions, keep a weekly eye on HUD & VA lists, bought some, sold some and even lost a couple!

In short, I'm a somewhat failed real estate investor trying to ressurect. I want to concentrate in the gold mine area of foreclosures.

Have I rambled too long? I need all the help & support I can get.

Oh, did I mention that I was laid off from my day job.