All Forum Posts by: RICK SAROUK

Flipper you are absolutely correct. Zill0w is a joke, as an appraiser I can tell you that most investors or brokers have no clue what market value is or how to determine if a property will cashflow properly , especially in these depreciating times. REO broker cant help much in today's foreclosure market place, they really don't have that much control over the lenders final decision making process I. Should know, since most of my offers were thru Listing agents.

Fipper thanks for sharing, so you purchased the 10 house package for flipping and if so do you have a team in place for finding, analyzing and managing your flipps? That is the stage I am in right now for Kansas and some other states.

Also, if I may ask, what was the profit margin on the flip of the 10 house project. Your proforma states the purchase price, but how much did you sell it for and how quick?

Thanks flipper for the example. I have been looking at Kansas for awhile and Flips only. How did you purchase the 1O house package? Was it REO or Standard ? I find that vacancy factors in Kansas are close to 10%

Flipper I 100% agree. There is no way to cash flow in Ca properly, for any investor. I am thinking of investing in other states, since I know that many investors are making money on Flips. The guy from Houston above reflects what many of my associates are saying about out of state investment. You have to go where the money is. If an investor with cash can put a team together in states like Houston, Michigan, Atlanta and other places the opportunity to make money on flips or Reo's will be pretty good. I would appreciate to hear more from flippers. In other states and their experiences

Mr. Hemet what would you suggest as far as flipping goes? How do you or your investors make money ?

Mr. Hemet, also don't forget market depreciation. As the property stays longer in this depreciating market the market value gets lower as well. So, in essence your not getting any deals from the bank at all.

This message is for investors in CA, NV or AZ. I am a licensed broker and certified appraiser. How many of you are profiting form investing in REO properties? I can honestly tell you that the myth the gurus are spreading around that you can purchase REO properties at 50-75% of after repairs value is just as much a myth and as rare as hitting the lottery in California specially. I am not talking about states like Kansas, Arkansas or other areas where I see investors posting that they picked up a foreclosure or short sale for $15,000 that was worth $40,000 and after rehab and closing costs they make $5,000-$10,000 after three months of time. Those numbers do not fly in most states.

In my experience and after submitting approximate 50 offers in March alone on REO inventory, the lenders after they acquire the property are not willing to sell at a great discount even after 100-200 days on market. They just gradually follow the market decline until the property sells to a owner occupant at 90-95% discount which for us investors is nothing. I mean think about it, once a lender acquires the property they have it listed with an agent, which most of the time lists the property at or close to market and reduces every 30 days a little to sell. If you were the bank, wouldn't you want the maximum price attainable in the current market give or take 5-10%. I think you would have a better chance of purchasing below market if you concentrated on regular sellers since there is some desperation or emotion involved. Does anyone from Ca. agree or have a different experience?

This message is for investors in CA, NV or AZ. I am a licensed broker and certified appraiser. How many of you are profiting form investing in REO properties? I can honestly tell you that the myth the gurus are spreading around that you can purchase REO properties at 50-75% of after repairs value is just as much a myth and as rare as hitting the lottery in California specially. I am not talking about states like Kansas, Arkansas or other areas where I see investors posting that they picked up a foreclosure or short sale for $15,000 that was worth $40,000 and after rehab and closing costs they make $5,000-$10,000 after three months of time. Those numbers do not fly in most states.

In my experience and after submitting approximate 50 offers in March alone on REO inventory, the lenders after they acquire the property are not willing to sell at a great discount even after 100-200 days on market. They just gradually follow the market decline until the property sells to a owner occupant at 90-95% discount which for us investors is nothing. I mean think about it, once a lender acquires the property they have it listed with an agent, which most of the time lists the property at or close to market and reduces every 30 days a little to sell. If you were the bank, wouldn't you want the maximum price attainable in the current market give or take 5-10%. I think you would have a better chance of purchasing below market if you concentrated on regular sellers since there is some desperation or emotion involved. Does anyone from Ca. agree or have a different experience?