All Forum Posts by: Jerry R.

Be careful as I see a couple different thoughts already in this thread. Make sure you understand the difference between a tax deed and a tax lien.

It is my understanding that tax liens do not wipe out anything (however I have no knowledge on California laws). It's not until you hold the tax deed that these secondary liens get wiped out.

Also tax deeds and foreclosures do not run hand-in-hand. A property could easily go to tax deed/lien stage before foreclosure stage. Heck the owners could have paid their mortgage all along and still never paid their taxes for whatever reason. If the mortgage company misses it - too bad for them unless they were not properly notified.

An REO I submitted an offer on yesterday was withdrawn today.

I also noticed a number of other properties I was interested in this week get withdrawn.

I only suspect it is because of this.

My thoughts echo Chris Walker's.

If a wholesaler can offer me properties not even cheaper but at the same price as REO's I'll buy them no problem. Why would I pay more?

Unfortunately the local wholesalers (myself included) can't come up with these deals so it's the REO's and Short Sales for now.

Hello,

I am wondering how others are signing their contracts such as purchase offers in the name of their LLC's

For example, in Florida they are now using a new 10-page FAR-Bar contract and every page needs to be initialed.

The old contracts only required one signature which I printed the name of my LLC followed by my signature and title.

Now that every page needs to be initialed, what I have been doing on every page is write the name of my LLC followed by my initials in parentheses. I think this is probably overkill and takes up a lot of space.

Ideas?

I assume if you want to blanket a neighborhood you plan on delivering them door-to-door or hiring someone else to do it.

5000 is a whole lot to deliver. Also how will they be delivered? It is unlawful to put non-mail in a mailbox. Flyers can be hard to hang on a door. You may want to consider hang tags or those plastic bags that you can hang on a door knob to put your flyer in.

If you are mailing, then post cards will be cheaper to mail than flyers.

Also, some of the local ad-style newspapers offer inserts that they will deliver with their paper. It costs more, but is easy to do.

The only way to know what works better cards vs. flyers is to test it.

Thanks guys for answering my questions. I should be closing on my first REO next week.

Rich, yes I meant auction.

There must be one coming up, because the MLS description on a house I am interested in just got modified to say it's going to auction.

Not sure of the date yet.

No idea on why the PM does not work. I checked my settings and do not see anything in there.

Thanks Rich,

I would love to get together at the next meeting.

Hi Rich,

I was nearly prepared to go to that auction. I personally viewed (from the outside) and researched nearly all the homes.

Unfortunately I was too late to go through the homes during the open houses which were the Friday and Saturday before the auction, so I was already at that disadvantage.

Also, I could not get an answer regarding the buyers premium which goes to the auction company. If the bank decides not to sell to the winning bidder, does the buyers premium come back to you or do you lose it? Any deposit escrow I know does come back in that scenario.

I stayed away this time, but next time will be more prepared as well.

By the way, I know of at least 2 of those homes are back on the market as REO's

The auction does not publish what the sold prices were, but I will continue to monitor those to see what they finally did sell for.

Hi Steve,

A couple of questions for you as well. I have been giving notice on my REO offers that I intend to resell the property - however I still have not gotten any offers accepted yet so perhaps I should remove this. Especially since I am not doing a double close and plan a couple of weeks between closing and flip.

Also you mentioned "or REO, the bank is actually on title". Could you elaborate on this? Are you saying the deed I get will have the name of the bank actually on it? Or just some sort of seasoning restriction?

So far I have not seen an addendum with a seasoning period - even on the Fannie May / Freddie Mac properties here.