All Forum Posts by: RICK SAROUK

Oklahoma, go read the previous posts, you not saying anything new, I know I can purchase 50% or maybe less in Michigan, Detroit, Oklahoma and the lower end states, where property values are less than 100k.

I am referring to investors within the higher end states like CA. NV, NY, FL, AZ, so forth.

So your post is meaningless and does not apply to investors within the above states I mentioned. I have heard people purchase a 55k home in Kansas or Missouri for 20-22k, but does not fly in CA. as everyone knows.

Oklahoma, I have no clue what you just said and I don't buy it. Purchasing at 40-50 cents on the dollar in CA. Only if your purchasing BULK!!!

For those who claim that they have purchased individual listed REO inventory at 40-50 cents on the dollar in CA, NV, NY and AZ please post your acquisitions after close so that everyone on this post can learn from you, me included.

I am not talking about Texas, Alabama, Kansas, Michigan or any of the lower end states, where you can purchase a property for 25-50k and I am not talking about REO Bulk purchases either, where an investor or corporation can actually purchase at 50 cents on the dollar within a portfolio worth tens of millions. I am referring to individuals investor purchases only.

Enough claims and innuendo lets talk about facts, post your closings or do not make wild claims, period.

BiggerPro, I am sure many people reading this post will disagree and actually are learning. As real estate investors we are all entitled to our opinions, as is Flipper and many alike. So for your to come in like the Gestapo and say enough is not fair and completely unnecessary.

[NOTE FROM ADMIN - THE ABOVE COMMENTS ARE EXAMPLES OF HOW NOT TO ACT ON A FORUM WHEN THE FORUM OWNER ASKS YOU TO BEHAVE YOURSELF IN ACCORDANCE WITH THE SITE'S TOS.]

Flippper why are you posting what I stated some time back? Don't understand that. My post clearly states that I am looking for REO properties to Flip in certain states, not high end states, and expand my flipping investment. How is that stating that I am expecting to purchase at 50% in higher end states like where you and I are located in. CA. FL, NV, AZ, NY and so forth.

Michigan for example you can purchase at 50-60 cents on the dollar, but the problem is that there is no demand. In another words you can pick up a property at 50 cent on the dollar and end of for months in the market and finally selling it at 70-75% on the dollar if your lucky to get out. As most people know, Michigan is in a deep slump due to their auto factory crisis.

My claim all along is that an investor has a 0 to slim chance of purchasing listed REO properties at 50 cents on the dollar in the high end states.

So in essence you are full of crap as I and probably everyone reading this post knew all along. I am newbie hah! Licensed Broker and Certified Appraiser for the past 20 years investing mainly in 1-4 units properties in 4 different states is a newbie in your eyes. What is negotiating skills have anything to do with REO purchasing? As an educated investor one should know his or her chances before one starts a business endeavor, in this case REO investing. If I know realistically that the chances of purchasing listed REO inventory at 50% on the dollar in my area of interest is 0 to slim, why would I not accept this fact and work around it. I hope everyone reading this posts understands that as investors you should value your time and increase your chances of a favorable outcome. Since we are not in the lottery or gold mining business and actually expect a realistic rate of return, you would need to analyze and accept lender guidelines and work within those guidelines to make a deal happen. If you can pick a a deal at 70-75% of market value and I do this every 2-4 months, considering that the property is a newer construction or needs limited work then that would be realistic. If you fall for this redicoulous claims of purchasing real estate at 40-50 cents on the dollar then good luck waiting.

AND I AM SAYING THAT YOUR ANALYSIS OF MARKET VALUE IS FLAWED!!!!!!!!!

AND I AM SAYING THERE IS NO WAY THAT A LENDER AND THEIR ENTIRE STAFF WILL ONLY GIVE YOU "FLIPPER" MLS LISTED REO PROPERTIES AT THAT, FOR 50% CONSTANTLY!!!!

IF YOU THINK EXPERIENCED INVESTORS WILL BUY YOUR LOAD OF CRAP YOUR OUT OF YOUR MIND. I CAN UNDERSTAND IF SOMEONE HIT A POT OF GOLD AND PICKS A PROPERTY ONE TIME AT CLOSE TO 50% BUT CLAIMING YOU ARE CONSTANTLY PICKING UP 50% IS FULL OF BALONEY, TELL IT TO A NEWBIE MUCH LIKE THESE GURUS DO.

LETS MAKE A BET, SEND ME ONE OF YOUR 50 CENT DEALS AND LET ME RUN MY APPRAISAL ANALYSIS AND WILL BOTH REPORT TO EVERYONE ON THIS BOARD SO THAT THEY WILL KNOW IF YOUR 50% REO PURCHASE CLAIM IS VALID OR NOT. HOW ABOUT IT FLIPPER!!!!!!!

I agree with you Flipper, but at the end and after the banks numerous deductions you end up buying where I suspect is 10-20% of final and reduced list price which most probably is 15-20% of as is market value.

So in essence you are not purchasing these REO at 50% original list like your 1st post claims.

Flipper, my only conclusion would be that your own impression of market value is not valid. Again there is no way that in Florida you can constantly pickup bank owned REO's for 50% of ARV, unless you are buying complete dumps and doing major remodel. Why do I say this: because I personally send in 30-50 offers in four different states, CA, NV, AZ, NM in the hopes of acquiring 70-75% of ARV market values on properties which are in pretty good shape, not fixers.

Does anyone think banks along with their realtor's and appraisers are complete idiots. Banks are not in the business of holding real estate, but bet your bottom dollar that they are not in the business of losing money once they acquire the property either. Once they acquire the property they owe it to their investors to get top dollar for the property so there is not way they will sell a property at 50% market value. Flipper I am not trying to argue with you, but I can guarantee your market value analysis is pretty much flawed.

Flipper, just because you are offering 50% of what the banks asking doesn't mean your getting the property at 50% of market value. Here is the mistake that most inexperienced investors or newbies make. I have seen lenders over list property by 15-30% and stay in the market for months. So Flipper if your offer gets accepted on a property which is 25-30% over listed considering its current condition, it does not equate to purchasing a property at 50% of its present or ARV market value.

What I am trying to tell you is this: there is no way that I have seen within the high end states that any investor can get a property at 50 cents of as is or even ARV value. Consider it a good deal if you get 70% of ARV.

FLflipper, I am certain that your numbers on your REO's are not valid. As an certified appraiser and 20 year real estate investor, I come across all kinds of investors throwing out numbers and statements that the lender gave a 50-60% discount on a REO property and time and time again when you dissect the deal, you will see the following:

A. Determination and analysis of market value on these properties are probably not valid.

B. Property needs major rehab, not minor!!!!

C. Some people are full of bull, thats right, there are many human beings who blurt out a load of bull expecting people to believe it. Don't ask me why they do it, but I have seen it happen.

I want all newbies and investors to understand that in most high end states like, CA., NV, AZ, FL, NY and so forth, lenders have appraisers and brokers who determine market value for them not once but several times on any one given property. Back in the old days, 1980-!998 you were able to deal with a bank head on without any intermediaries and you were able to pick up properties at 70 cents or less. Today, 99% of lenders have realtors representing them and 99% of all properties are listed. There is no way that a lender will cut 40-60% on a property. Don't believe it and if they do, then might as well play the lottery. Lenders drop the listed price every 30-45 days until some purchases and usually sell about 80-90% of market value, which is great for an owner occupant but not for an investor.

So do not let these statements from some of these people on this board get you thinking why this is not happening for you. I can tell you that most of these 40-60 cent on the dollar claims, again I am talking about high end states only, are full of bull crap.