All Forum Posts by: Robert Mack

Every area will be different, but a big reason for the slowdown in properties being foreclosed on is because it came to light in about November (i think?) that banks weren't following protocol when foreclosing on homeowners. There has been countless news articles regarding "robo-docs" and Mortgage Electronic Registration Systems (MERS) and in about November a couple of the big banks said they are stopping all foreclosure activity. I believe that they have since started up again, but I have seen very little activity at the courthouse still.

I had a property with a Chase loan which I had under contract at this time and they delayed the closing about 6 months because of this. I believe the banks are going to start the process again in the coming months, at least in NJ. There was a court ruling in late March here where they appointed a retired judge to oversee the foreclosure process. But that is just a guess.

Here is one link to a news story regarding this from Housing Wire.
http://www.housingwire.com/tag/robo-signing

I'd go to Home Depot or Lowes and make a list of materials with SKU's. You can them look them up online by sku later and have a database with links with pictures also. Rehab material is going to be different based on your geography.

If anything, I'd go to my local REIA and find out what rehabbers are using, or tour some updated homes in the area to see what finishes they have.

I agree with J 100%. You need to completely trust the people who you put on your team, so you can't simply go to Realtor.com and pick a couple agents and ask them to send you comps/ARV. Most are trying to move their inventory. The only real way to find your team in my opinion is to physically go to the area and spend time there getting to know them.
Joining the local REIA's is also something that you should definitely do.

I sort of do this on a small scale and what I did was I moved to the area I wanted to look into. I spent time getting to know the area, the market and the people who were going to be helping me in my flips. Did a couple flips while living there became friends with my Realtor,mentor, contractors etc and now come back periodically when needed.

Decrease profit by how much? If it's to about 8k so that all 3 will equal a profit of about 25k then I'd say no. Each property will have different obstacles, be put on the market at a different time and sell at a different time. Why not keep looking to find 2 more properties that have about $25k profit in them?

Also, when you start trying to squeeze a small profit, there is much less room for error. A couple surprises or overestimation in your ARV and you might be in the hole.

I always look for a minimum profit and/or minimum cash on cash return.

Try talking with some local investors who are landlords renting multi-unit buildings and talk to them.

Your best bet is probably to call the city directly and get the answer straight from the horses mouth...

This is pretty big news for the whole housing industry. Three big banks announced they are holding off on proceeding with the foreclosure process for the time being because bank employees/executives weren't properly reviewing each case properly among other things.

I had a property under contract which I believe was serviced by Chase, one of the banks that announced it is halting all foreclosure proceedings and was informed by the LA that I'm not going to be able to close on this property until this gets straightened out.. so I can wait and keep it UC or cancel my contract.

This might be just the start, I feel that all other banks are going to get enormous pressure from the government and public to follow suit...

What is everyones thoughts and how do you see this playing out both for the investors, real estate professionals and for homeowners affected?

Here is a link to a NY Times article, "Flawed Paperwork Aggravates a Foreclosure Crisis"
http://www.nytimes.com/2010/10/04/business/04mortgage.html?pagewanted=2&_r=1&ref=business

I am the same as Jon, I donated here on BP, and bought some books and bought a couple lunches from successful investors. Also joined a couple REIA groups.

In my opinion, to invest out of your area of expertise, you need to first go visit that area, spend some good time on the ground and form your team there personally. I am from NJ but invested in a couple flips in SW FL this past year. I moved down there for 8 months and made friends with the people who I knew would be able to help me invest in FL. I found a great Realtor who's also an active investor and joined the local REIA where I found a great title agent, contractors, handymen etc...

I would of never invested there without spending time on the ground getting to personally know the area and the people who will have an effect on my bottom line.

I would check out Jscott's blog 123flip.

He is doing multiple rehabs at once and has a pretty detailed blog about his systems he uses with different checklists and so on. I have used them for the rehabs I've done.

Search him out on BP and find his blog, it's well worth to read from the beginning.

Starting out, I rather lose 5-10k on a deal then pay for a boot camp of similar cost (not sure what this costs but just making a point..), It'd be a much better education I feel.

Theres only so much you can learn from reading and listening, and just about all that is available here and at local REIAs where you can talk to other investors.

It's always important to educate yourself first and read up on what it is your interested in (wholesaling, flipping, landlording etc..) but eventually you have to take the dive and then you really start learning.

So before you go to a boot camp, think hard about what you want and expect to get out of this and then figure out if there is another cheaper maybe better way to get this education.. books? BP? befriending investors at the REIA or local BP memers?

Like realtyman said these are my opinions, but I agree with his post also.