All Forum Posts by: Rob Harris

Interesting,,, I, a few days ago offered what I thought to be a reasonable offer on an old duplex that needs a lot of work (an REO), and the bank was not very workable concerning the offer. Yes, I low-balled them as the property had , but they countered back only dropping the price by about $400....

They did comment to my Broker that the price would probably be dropped 2-3 weeks, so to heck back then to get a better purchase price....Interesting..... So it appears they are looking at certain mile-stones as to what they will accept when IE - looking at how close they are able to get to asking prices as it relates to DOM..... 

So - I am in a holding pattern, essentially playing the game as to when they will be ready to accept what I am willing to pay.  Yes, I would pay more than I offered, but of course I wanna steal it! 

 @Zach Quick mentioned some great points. And if you don't have much that would conflict with you diving deep into learning how to REI in a wise way. Start analyzing deals routinely to sharpen you skills so when the ones that pencil strong that are "real" deals, you will be in a position to move on things quickly and wisely. For the most part, the numbers should guide your decision making supported by the market and associated local factors that would make a property a wise investment!

I would suggest you also try and find someone local who is experienced and may be willing to mentor you. Networking, network, network,,,, this will pay you non-monetary dividends that will turn into future monetary dividends.

Hey Craig, glad things are moving odin the right direction for you.

With your dilemma, in my humble opinion, it comes down to priorities AND what your end game is for this purchase. 

If you have the opportunity to get into a multi-unit (4-units or less) positioned in a manner that will allow you to have most of the investment paid by others (making your note payment for you and allowing you to save more of your personal capital) that's a god thing.  Using traditional conventional financing for this and having it in your portfolio will help demonstrate to future lenders that you have moved forward with a solid investment strategy, especially if the numbers are strong and you bought it right. 

If you have "strong" wholesaling opportunities to make some quicker cash, thats a good option, I would just make sure you don't get caught up to where if you have carrying cost you get eaten up and lose time... IF you jump into wholesaling you need to make sure you have a solid understanding and some wise council to help you through to make sure you don't get burned. 

Seller finning is great, but they may want more cash down than what you have available??? - I don't know the numbers in your market, so you would have to assess if this is probable....Going conventional would allow for a second position note holder but if there isn't enough equity in the property to make it a viable option for the secondary note holder, you probably won't get to much traction there....

If you don't have a specific property on your radar right now, you may want to get your hustle on to save and make that extra cash to go in stronger to your financing entity.  Get Pre-Approved before you even make a future offer to strengthen your buying position with a Seller.  I have gotten plenty of pre-qual letters form potential Buyers of my properties and honestly they don't carry much weight with me. Pre-Approved "usually" means they are more serious and already been at least partially underwritten by a banking institution, which means more meat on the bone to me.... 

Hopefully some of this helps! - Rob H 

Sorry, Brent Coombs.... My bad!

I agree with Brent Comds, don't burn your available cash locking it up on a deal that's only going to net so little. Just purchase it outright with a Std first mort loan and run the numbers to ensure cash flow works out.

Jingmin Zhang Oooooohhhhhh, forgot something BIG!! I hope you got his insurance info. That's a very viable avenue (filing a claim) for circumstances like this.

Looks like he was running a game on you, in my humble opinion.  He either needs to perform and or you will have to sue him.  In CA, performing work unlicensed or while your license in suspended is a CRIME.  I am sure it is there too if a licensed was required for specific types of work,,, but agin, I don't live there.

Sorry you are getting "dirtied" up on this deal.  He knew what he was doing and that seems to be obvious.

Personally, I would calculate what is the best financial move for you to make.  If he has not performed to the tune of the money you have paid him then you also have legal cause in that manner.

He either needs to figure out a way to perform or face legal ramifications.  If he won't cooperate, get a new contractor in to finish the work BUT document WELL what was done with pictures and also what was not done.  Establishing a solid evidentiary case against him is paramount as he will deny anything you can't prove.  Might be a good idea before any other contractor comes in to have a Licensed Home Inspector come in and document as a 3rd party the condition of the home.

I really hope this doesn't hurt you too bad in the end.  Sounds like a lot of costly lessons learned.  I hd to learn them also,,, and still learning!

Side Note: I would record any and all contact with him that you can.  See if you can get him to admit failures on a covert digital recorder.... That is good evidence..... So during your next conversations and when you start talking legal moves, that would be a wise move. 

Good luck and I am open to anything else you would like to inquire about.

My Best, Rob 

Ask the selling agent for a copy of the report (if they got it) and you can get some quotes to remedy the issue. You just never know until u ask! I've seen mold scare folks off and the remediation really was minimal and folks bought house for several thousand under value. I'm talking, it was all of $1800 worth of work and they bought house for $30k under market value!

Anyone or company that has a legal, titles interest in the property should be able to be located by doing a thorough title search and checking for any Deeds recorded with the county clerks office. ALWAYS make sure Title is clear and insurance before giving anyone a dime! If you are obviously not seasoned in dealing with such a transaction they could sale you a page of tricks and you would limit your recourse later. Always perform complete due diligence not just on property conditions but also re any encumbrances to the property and make sure you check to see if they have signed any service contracts that come along with the property that may surprise you AFTER the fact. Hope this helps!

Typing on my iPhone --- sorry for all the grammar mistakes!!