All Forum Posts by: Scott Schultz

you should do well on this one if there are no unforeseen issues, I buy regularly at Sheriff Sales, the reason you had no competition, is the spread was not wide enough for most investors sight unseen, if I cant get in, I have to get it for 50% of ARV ore more depending on that ARV, based on your numbers, you dont have a lot of room for error, especially using hard money, 200k-15k= 185k- Commission and title 113k=172k- holding and finance costs 6k=166K- 124k=44k now if you get in the basement and the furnace is bad, or gone, and you have a bulging basement wall, and have to tear out landscaping or driveway to fix it, your almost sunk. Im only pointing out the possibilities with site unseen. here is an example, go to Hubzu and look at the house in Kewaskum WI 168 Washington Ave, you would never know, its gutted to the studs, and everything is infested with mold. or I have seen basements with water to the top of th basement stairs, froze solid, and they look fine through the windows. Im not trying to scare you, just prepare you. it will probably be a great deal, and all work out, just be aware.

thats exactly why I only read these and never give my secrets, Id love to share, but i dont want to be out bid by someone that read my post I will always help where i can if it doesnt jeopardize my ROI. my back pocket has a lock on it.

 Are you looking for returning your initial $20K or are you looking for a % return on the investment like a index fund you purchased for $20K giving you 6% return year after year. most of us i think are looking for the asset to "throw off cash" meaning getting the % return on the initial investment, hoping there is market appreciation and later selling or owner financing the house out when you are done with it to get the initial investment back out, like selling the index fund after the value has increased, and gave you a return. 

When you say conventional, do you mean Freddie/Fanny? will the Buyer have PMI, just a word of caution, some of the PMI companies, and some "big banks" have issues with "title seasoning" anything less than 12 mo can kill a deal, i have run into this 4-5 times now over the past 15 flips. and most loan officers are clueless about this, so you find out a week from closing that they cant lend. just questions worth asking up front.

No seasoning requirement on the Commercial side, although some banks have internal guidelines. Im closing a LOC next week on a property i purchased at sheriff sale 2 weeks prior, with cash for $32,206 got a BPO back of $80K and they are giving me a $64K line (80% of BPO), he wanted me to term it and give me all the cash, but i dont want to pay interest if im not using the money.

I would say @David Zamarron is about right, FNMA tends to not discount a lot off list, instead they drop the price, my best deals are not MLS deals, generally auction sites and Sheriff Sales, but you must watch them every afternoon and be ready the next morning to buy. just my 2 cents.

unless you are seeing a appreciation upside, thats a huge investment for $215/mo positive, how long is the amortization on the loan? my target on SFR is $250/mo. positive (for calculation only) financing 100% including rehab @5% on a 10 year amortization, im getting that done all day, your market cant be that different than here in WI

I got a hose and nozzle set up for my pressure washer on ebay for cheap, works great, now when i do a rehab, its part of the program to jet out the lateral, 

Rust Out, is the best, we use it all the time, otherwise everything is orange in these parts.

if you go into hudhomestore.com look at a listing, and click on addendum, one should be a sale contract, with a form regarding Forfeture of Ernest money.