All Forum Posts by: Mark Updegraff

Originally posted by Steve Babiak:

As a follow-up to the post from Danielle, I always have to point out that if it does foreclose, you might never get a chance to buy because a buyer at the foreclosure auction might take it before the bank owns it as REO.

then go to the auction! duh :cool:

Originally posted by Danielle C.:

I can't answer your question regarding the rural development loans, however I can say that if this fails and the house is foreclosed, you can attempt to track it down and purchase that way. You may even end up gettng a discount, depending on the area. I would ask in the REO forum about how to track these types of houses down. If it doesn't sell now, it may end up working to your advantage.

There should be a local business publication that you can pick up daily / weekly / or subscribe. You can find the house and go bid on it directly. The judgement amount will be posted (it could be more than the short sale) you'll need ~10% at bidding certified check & close w cash in 30 days... at least in my neck of the woods.
If not, remember, there will be other homes at good prices. It's a buyers market, especially if you have cash.

Good luck either way!
Danielle

Hey Chris, I'm no expert but I'll put in my 2 cents anyway.

timing is always key, less competition = cheaper closing. that said, sometimes when you're the first in the house and dropping an offer (full price, or close to it) the seller realizes their agent may be off on the price, and they sit back waiting a bit to see what happens. So your ability to not act too eager but yet be strong will always help.

Also remember, there will always be anther house, another deal, don't get too attached.

Always make your offer on Shorts as strong as possible. If you're buying "as is" anyway, why even have an inspection contingency - if it is truly "as is" it doesn't matter. If that inspection can get you out of the contract, then you're just as likely to walk / renegotiate, as the other is risky in the financing.

FINALLY, and probably the most insightful for you. I just learned this, and I'm not exactly how it was worded in the contract, but I will do my best.

Your realtor should be able to word the contract so that they can't do the "OK, we've got bids, now everyone give me your BEST offers" I believe it was worded that when the seller accepted the offer, they were no longer able to take any other offers. Maybe someone here can clarify, or I can call my RE agent. In your case it may not have mattered... but like you said, timing is key! If you had put that clause in, the seller would have been forced to decide on your offer right then, rather than waiting for more offers.

hope it helps! It worked for me! I've failed on several shorts in the past, and using this clause, and getting into the house quickly & presenting a strong offer got me a house with substantial equity already in it!

Good luck!

Originally posted by Syl Robinson:

Hello Everyone, I am 25 years old and have figured out that the regular 9 to 5 is not for me, I know there is something bigger out there for me. So I'm looking to start in Real Estate somehow. I know the basics a few books here and there but I am starting from scratch, so any useful advice anyone could share, would be greatly appreciated... :D

Hi, I'm only 3 years ahead of you and having a great time! For an inspirational read CHECK OUT (not buy, go the library) "Rich Dad, Poor Dad" - Once you understand how to "mind your own business" the rest will follow.

Step 1: reduce expenditures as far as possible.
Step 2: Pay yourself first! Once you "pay yourself" for investing in ASSETS - DO NOT TOUCH THIS MONEY UNLESS IT IS A REAL ASSET (ie - not your primary residence, unless it is at least a duplex, not a car, not vacation... something that will bring you Cash Flow).
Step 3: build that asset fund until you can purchase your first asset! During this time you can get started doing other things (read on)
Step 4: Find an EXCELLENT realtor. All realtors are NOT created equal. Interview many!! Find one that does a lot of volume, preferably someone who owns a brokerage, or is working to be a broker. Make sure they know what you wnat to do (IE buy / hold / rent).
Step 5: Get the MLS Feed and start going to houses.
Step 6: Find a target location(s) - yes, it should be close to your primary to cut costs - you are going to be the prop manager to save $ right?
Step 7: go to all listings in those areas, make notes on the homes, cost, condition of roof, furnace, price per sq ft etc
Step 8: Figure out how to get comps, easily! ZIllow may work OK, but there is probably a better / easier listing of SOLD properties, remember that sellers concessions may be reflected - don't know what that is? Look it up :D
Step 9: Find a good attorney, he/she will be ale to answer many "stupid" questions at no cost. And will be essential for closing deals.
Step 10: Find a good mortgage broker, shop around, find good rates with good terms - the less you need out of pocket, the better. it will leave you with more to buy more!
Step 11: use craigslist to determine your rental market in that specific area. Make sure that these rates will cover all yur expenses + 10% Vacancy & 15% repairs + Cash FLow you some coin. I look for 20-25% cash on cash. It may be tough to find, but it is possible.

Hope this helps & GOOD LUCK!

Originally posted by Tim Wieneke:

No.

pretty weak Tim, I hope they docked you a couple influence points for that response :lol:

I really liked Bill's response. I've never used ratios on my properties, in fact, I just heard about them here on BP, which I've only started frequenting.

My primary consideration when purchasing an investment is the Location. I feel that a cheap property in an up-and-coming area is the best place to stash some cash. My strategy for picking houses insures that I have about $300 - $400 CF after all expenses. Expenses include P&I, Taxes, Insurance, 15% Vacancy & 10% repair. These properties are not easy to find, but they are out there. I've always had to be swift on my feet, and present very strong offers (no contingencies, strong good faith, quick close). In the 2 short years I've been doing this, I've already had offers on my homes. One I paid 72K for, spent about 5K on fresh paint, redoing wood floors, and a little carpet I was offered 110K less than a year later. I declined because I'm confident I picked an excellent location that will continue it's upward trend for decades to come. As far as ROI, it is my worst performing asset (due to higher insurance on brick home). However, it is charming, easy to rent / show, in stellar location, etc etc I'm not concerned that my CF is slightly lower because I know it is a winner. :cool:

Originally posted by Pete Krzak:

20% down.... could I do 10% of my own then use hard money the rest?

not likely - what you CAN do however is receive a "gift"

the bank is going to look to see that you have
20% down plus reserves for 6 months (P&I)
- you're going to have to show that you've had this amount in your account, and that there have been no large deposits.
If there have been, you're going to need to show where the money came from. You can use your IRA.
There is a maximum gift amount, but I'm not sure what it is. I've used 8,500 as a gift. You don't actually need to use the gift money, but you need to fill out the paperwork and get the certified check with the donor as the remitter. You're mortg. broker should be able to walk you through it.

I see no hurt in listing it either FSBO or MLS while it is currently occupied.

Do check if you must hold if for a period due to you getting assistance first, as previously mentioned.

My area has not suffered the same as other areas. While some are complaining about being underwater, I've seen appreciation (significant) in all my SFRs. Locatoin, Location, Location!

Originally posted by Pete Krzak:

I am looking to buy Single Family or Deplexes around my area(Erie,Pa) without going through MLS. Anyone have any ideas on great places to locate these. I would like to only use 10% down on them. The bad part is that we do not have real estate conferences or meeting around here. I want these properties for long term cash growth. Any ideas?

I would say Craigslist isn't optimal, but you may stumble across a FSBO or find a contact whom has a portfolio from which they sell. Most of the listing of FSBO are overpriced IMHO - people who think what they've got is gold, when a realtor wouldn't list it anywhere in that ballpark.
Hopefully you live close to your target market, because there is nothing better than driving around the hood and looking for those FSBO signs out front. Of course, these are usually above market as well, but you can at least talk to the person and get a sense of how motivated they are to sell.

Finally, Good luck doing 10% down on an investment property, in these times lending institutions want 20% down or more. If you do find a lender at 10% down, let me know where!

Word of mouth also works really well. Make sure you have business cards and hand them out to business owners / clients in the area. There is always someone getting ready to sell, and they'll call you first if someone passes along your card.

again, happy hunting!

Originally posted by Luiz Souza:

Just curios!!!!

L.Souza

PITA is putting it lightly. Was dealing w/ BoA short before the new year, that got accidentally canceled, and then re-opened in the new year. It went from Ridiculous to absolutely up the wall want to kill someone bad! I can't believe it actually closed. They were calling me for more information even after they had given "cleared to close" with the attorneys office for the third time. Seriously was thinking about driving to the one guys office and punching him out!

Originally posted by Pete Krzak:

First off I just want to say that I am thankful for all those who reply with all this information that I can use to soak in. With that in mind I just want to mention that I am currently looking to purchase properties to use as rental and for long term growth. I live in Erie,PA( We have a great lake named after us for those who don't know lol) and want to know the best way to start investing in terms of low money or no money down. I am mainly looking for Single family and Multi-family homes. I am interested in anyones opinion about the best ways to get started! Once again thank you all for your time :mrgreen:

IMHO you should start by saving money, unless you live below your means and stash capital to purchase assets you will run into troubles later, 0% down or not...