All Forum Posts by: Scott Schultz

Take the emotion out, i feel you like one of them too much, even though you plan to live there, it still has to be a good financial decision. if you feel its overpriced don't buy it, NEVER overpay!!!! even if you like it. 

@Jack Thanadabouth Ah the Heroine Thoroughfare, Im partial to small towns vs GB or MKE be very researched on Green Bay, a lot of investors have frantically exited that town after some changes in city Government. there are plenty of opportunities in that corridor.

As far as lenders, if you stay with duplex or singles< the rental experience is less of an issue.  Good Luck.   

Your numbers seem quite high, are you arm chairing everything? I think granite is overkill for a rental, keep in mind a lot of the stuff you put in will be trashed in a few years and will need to be replaces again when you go to sell it. Just my 2 cents I am working on flip #15, I don't know it all, but have learned a few things.

$20K will get you a big project, what location in WI are you interested? Im in Rhinelander, and a Investor and Broker, $60k you could get a turn key in some markets. Have you looked at commercial loans, generally less strings, and some will borrow up to 85% of BPO value.  Also what parameters are you looking for?  

I avoid "Manufactured Homes" in Wisconsin, as end users are very limited to mortgage options, it could work if you hold the paper, or if you have a lender on board. A manufactured home is considered Chattel and not "Real Property" there are exceptions, when permanently attached to a foundation.

Also a "Modular Home" finances as a regular home, it is built to standard building codes, please don't confuse them, the difference in value is many thousands of dollars. Modular has a Deed, Manufactured has a steel frame under it, and has a title at the DMV. Good Luck!!!!

Thanks thats what i get out of it. the USA part, I mean that United States of America under Secretary of HUD was not named in the foreclosure proceeding but i have seen others and none of them do. Wayne, have you purchased one of these at sheriff sale before? does HUD record a release or satisfaction?

I was the successful bidder on a Sheriff Sale for $48K, value around $100K the foreclosing entity is Carrington Mortgage, its a federally insured Reverse mortgage, and they record the originating mortgage, and FHA records a mortgage in the same amount ($160K in this case 150% appraised value) USA was not identified in the proceeding, does anyone know how this plays out, will the FHA instrument stick, or does it get wiped out? I spoke with several foreclosure attorneys, and title companies, and no one seems to know, they assume the title will clear but are not sure. I could forfeit my 10% or roll the dice. any input would help.

Cant imagine you will find that anymore, as recent as a years ago my old banker would do an "in house" eval based on Tax assessment and and some local comps I could email over from MLS (I'm a broker) but under new Fed regulations, they need a real valuation, either a BPO or an Appraisal, I've been paying around $200 for BPO's when I get a loan, just call it the price of doing business.

I'm up in Rhinelander, a broker, former REO only Listing broker turned full time investor, I flip, as well as hold, a word of caution with Wausau, you have to register your rentals there, and there is an annual fee, also they are permit nazi's make sure all trades are licensed in that town. I don't buy there for that reason. Good Luck, I will answer what I can for you, I have been involved in 500+ deals mostly REO, also have experience with auctions, and Sheriff Sales.

I have Commercial Lines in place to be a cash buyer, then put permanent financing in place, the best part of that is some Commercial lenders will do 80+% of BPO or Appraised value, my lines are prime +1% (4.5% right now) and permanent even cheaper ask other investors, and brokers that work with investors who the good Commercial bankers are, build a relationship, it will take time to build trust, low DTI, having equity, and a stellar FICO helps too. But a word of caution, some will want to "pool" your properties with the carrot of greater buying power, just get in writing a plan for the properties being released from the pool when an equity level you feel fair is reached, Bankers want control, protect your equity.