All Forum Posts by: Edward Briley

@Darrell Shepherd  I seem to spend more time looking for properties than anything else.  Maybe that is why I joined this forum, so I could get my mind away from looking so often.  I don't think the average investor knows were to look for all of the deals.  I joined a list a few years back promising to send me a list with all of the foreclosures, I find twice as many by doing the work myself, and bookmarking the sites, and get much more information about the property.   Wow, I must scour a hundred web sites a day it seems.  The biggest problem I have is getting an agent to show me a property before I submit an offer on it.  I think I have calluses on my butt. It is a hard job, but someone has to do it!!!

@Anthony Dooley I always add the contingency for a home and termite/moisture inspection for informational purposes only at my expense. I have seen too many investors that get stuck with properties that are infested with termites, or rotted, missing pillars, floor joist, not to mention foundation issues etc... Now if you are just buying the dirt that is one thing, but if you are going to rehab the property, even though you may have to pay a little more for it, it may be worth your wild. The last property I bought I did forgo the temite/moisture inspection because the home inspection turned out fine, and the inspector did not see any damages. I will also tell you that I will low ball a property in a second at when I view the property that I see something that is obvious, such is a foundation issue, asbestos tile and such. Also, depends if the property is on a flood plain, and the FEMA rating. Many investors run from these properties because of the extra expense for flood insurance. I purchase the flood insurance for the property even though I own the property outright, and it is not required. These properties turn out to be very, very good deals. However to flip and sale, I would not do it, unless the property had some type of water view that was enticing to a buyer.

Appreciation - After reading some of the post in this forum, I find it hard to believe that someone could even give advice on what will appreciate, and what areas will depreciate.  Some of what is  posted, might is well be recommending a stock, and then dumping it.  Pump and Dump comes to mind.  Appreciation on a property is a luck of the draw at present, plain and simple.   Real estate investing is like everything else, buy low and sell high.  Make sure you secure some dirt for yourself somewhere down the line.  Rental properties in my area are and have been great in the past, but even that may pass because the Government basically supports the economy here.  When the Government gets a raise, everyone gets a raise.  Home values increase, and everyone is happy.  However, what has been a basically secure real estate investment may change in the very short future, is the Navy is moving ships to other ports, and the Government raises have been flat for the last 5 years.  Add to this the Government is downsizing the military which means less ships will be built, and for the simple fact that NASA is quickly becoming extinct.  Smaller military requires less hardware.   So short of someone finding oil or gold here, means that deprecation will be on the rise here.  At the same time seems like the tourist industry is doing very well.  So trying to predict anything here and all other areas of the country cannot be predicted at present.  My bet is buying low priced properties at present, fix them up and rent them.  Actually many believe that a major war would increase property values here,  but history shows the exact opposite. 

@Jay Hinrichs It is law everywhere, I think.  However, a month to month rental agreement is not a lease, and many really do not have even that.  They just pay their rent when they think it is due.  

I have personally known someone that was renting a home, and he had lived in the home over 2 years. When he first rented the house he had a one years lease.  After the lease had ended he made a verbal agreement with the owner that he would pay month to month.  Every month he mailed his check to the owner of the property.  One month he got the envelope back in the mail marked "deceased".  For the next two months he did the same, with the same reply.  The owners phone number was disconnected, so he remained in the house.  Because the owner was paying for water for the property, the water got cut off, so he put it in his name.   Don't ask me how or why, but somehow, he claims that the family of the homeowner, deeded him the home 2 years after the time the owner deceased and all he had to pay was closing.   The real good part of the story is that he only met the owner in person on the day he signed the lease on the house, and only talked to him on the phone 3 times over the years.  The house is worth at present time over $300,000.  Not a bad reward for paying your rent on time.  I am sorry for sharing stories I have known that have happened, but I find them interesting and sometimes cheerful. 

@Jay Hinrichs It is the same here.  However, I had rather be safe than sorry.  I have seen auctions for a property to start at 10AM, and at 930AM the auction is canceled.  I was looking at a property over the weekend someone was working on, that was scheduled for auction this morning.  Needless to say when I got up this morning the auction was canceled.  I will tell you this, I have also been to houses, knocked on the door and the tenant answered, and gave them the news that the house they are living in is scheduled for auction due to foreclosure.  I am sure that is not a pleasant way to get basically an eviction notice when quite possibly they have been paying their rent on time.  However, in todays market, it is rough out there, and the only way I can see to win at present is to make sure all of my bases are covered.   

I need to make sure I know exactly what I am getting, and that no one will be able to take it away from me unless I get paid for it. Risking up to $50 for each property I bid on will be a good deal in the long run.  Even if I go 6 to 8 weeks without getting a property, and I have spent over 1,000 dollars in paying for title searches, that one property I get will more than make up for it.  The law of averages is on my side.  

 Thank you for your reply, but you failed in answering my last question.  Is it a smart move to buy a property in cash with money borrowed from a prior second mortgage or not? In Virginia, it is law that under most circumstances that your primary residence cannot be touched, however, the question will be asked, which will be considered your primary residence?  Will it be allowed to be the residence you reside in or the residence you let go into foreclosure under your own maleficence? 

@Rick H. 

"I'd much rather move paper around than deal with the collateral. Besides, a house won't fit in a folder."

If there was not people like you, there could not be people like me!!!

@Steve Babiak  What I have seen in my area that many loans are auctioned off by the junior loan holder, because so many got a second on their 20 to 25 year old mortgage during the real estate boom.  Some of these properties do not even have a first mortgage, because the home owner paid it off, while at the same time, have run away with the money from the second, after the first was satisfied. 

I want to know an answer to a question, however.  I know of 2 properties in which the owners got a second mortgage and have moved to another new home and paid cash for that home, while at the same time watch their first home go into foreclosure.  Does the bank have any authority to attach the second home?  And would it be worth the banks time to do it?  I have seen this happen within the last year, because the owner of a property borrowed the money in the real estate boom,  saved it, and now that there are waterfront homes to be bought for pennies on the dollar they have purchased them for cash.  Not a smart move in my opinion, or is it?

@Rick H. I am glad that there are still a few JR Ewing's around.  (JK, as the kids would text).  Now, I have seen something very disturbing in buying and selling real estate.  That is that so many people look at doing this is stressful, and do not enjoy it.  Even when I flip a home, and don't even, break even, I take pride in it, and that is enough enjoyment for me being able to give a good person a nice place to live in.  Rick it seems like you enjoy it like I do.  The money is good, but there are occupations you can work at that do just as well.  I just want to let you know that I am one that enjoys it also, and that it is not a cake walk at times, however, the more challenging the deal is, the more it is worth.  Maybe someday I will get more like you and play more with loans etc...  I am just a greenhorn still, getting my feet wet.  

Now I do have a question for you.  I bought a nice 3BR/1Bath brick home to flip and rent for nearly nothing.   While the work is being completed on the house, lets say I received an offer for the home to sell it for twice of what I have in it.  The home will easily rent for $1100 a month.  My real estate agent is telling me that I would be a fool to sell it. What do you think?

In my opinion that even though I may not find a sweet like deal like this in a long time,  that another will come along, and I had rather take the cash now, and upgrade, even though the upgrade will not produce any more rent than this one, but the selling price on the back end will be much greater. 

@Wayne Brooks I do know this.  The auction starts the bidding with what is owed on the property, and if no one bids that price, they will tell you that no lower offers will be accepted.  If no one bids they leave. 

@Jay Hinrichs   

I am not sure about that.  Online doing research, and reading the post here,  there are companies that will do a title search for less than $140 with guaranteed results.   Now there are no less than 10 to 50 properties a week that come up for auction in the cities I would be interested in buying in.

If I can get the price for title searches down to the $50 dollar mark for each property I would want to bid on, lets say 2 to 3 a week, it most definitely be worth the money to do so, if it is possible to save as little is  $200 to $300 a property or more.   I could do something for the title company on the back end with properties I won.  If I had "Bigger Pockets" and could bid more properties a week, the $140 mark would be more than fair.