All Forum Posts by: Steph C.

Hello,

I am looking for some recommendations for lenders in MA for purchasing rental properties.

Are there any local portfolio lenders that are lending these days? Any private lender recommendations (those who
want to hold a long term note)?

I have a couple possible rental property leads that look promising, and have positive cash flow upon purchase.

Thanks,
Steph

Thank you both for your help!
Steph

Hi,

I have a few questions for landlords in Mass; I've received some conflicting information from people in the area.

I was on the mass.gov website reading about the security deposit rules. It says that the landlord must keep the security deposits in a "separate" interest bearing account from a Massachusetts bank. Does that mean you need to have a separate bank account for each tenant to hold their security deposits? I assume that is so, but want to clarify.

Or, if you have a multi-family, can the security deposits be on one bank account or do they also need to be all in separate bank accounts?

Lastly, for those that hold properties in LLCs, do you have a separate checking/ bank account for each property in that LLC (to pay the rental property expenses and collect rent) or do you keep a separate bank account for each property on its own?

Thanks,
Steph

J Scott and others that were due to close on REOs this week, were you able to close?

I've read on some blogs that people are getting their offers returned to them because they're pulling some REOs off the market.

Steph

Bank of America supended foreclosures in all 50 states last week:
http://www.latimes.com/business/la-fi-foreclosures-20101009,0,6804241.story?track=rss

What is the status of properties currently listed on the MLS as a foreclosure? Should investors make an offer on these or does it depend on the bank holding the mortgage? I've heard so many people saying that they've made offers on REOs only to see the house off the MLS soon afterward.

Here in MA, it does seem that less new listings are showing up daily, but I haven't noticed any REO properties I'm watching get removed from the MLS - yet.

Thoughts?

Thanks,
Steph

Thanks, Bryan. I did tell him we would be offering well under $200k, which is not what they were looking for.

I appreciate the input.

Steph

I would also like some info here as well. We've made an offer on an REO that's been on the market for 370 days. It's in pretty decent shape, so not sure why it's been listed so long (we'd be doing an inspection, of course, to see if there are unknown problems).

The house is currently listed at full market value. Since the septic may need replacing and there is a possible roof leak, we offered about 80K under asking (septic systems in MA can run about $30k). The bank's Agent basically told our Agent that we were wasting her time and that we would not even be to be able to close (how would he know this?). He said something to her like if we wanted to make a more reasonable offer, maybe the bank would consider it. It appears the bank won't even counter our offer until we come up with "highest and best."

Now, we're willing to go up a bit, but not near asking. We're not overpaying (or paying more than 65% ARV) to make this guy happy. But, if a property has been listed over a year, I don't get how they can be holding out for full market value. What am I missing?

Thanks,
Steph

Thanks, Everyone. I couldn't find a way to make this deal work, but I thought I'd ask to see if I was missing anything.

I talked to the seller and said they're better off trying to sell retail and probably should list with that new Agent. I will follow-up with him in a couple months if the house doesn't sell to see if then they'd be more flexible on price.

Steph

Hello,

I got a lead from one of my mailings for an inherited house, 3bed/1bath. The sellers (4 children of the owner) had the house on the market for a while and the listing just expired. They are looking for more than what the house is worth (current comp value approx $200k, asking $248k), but the house appears to be in very good condition. In having a discussion with the son, he would be willing to come down a bit (closer to $200k), but still more than we want to pay. We'd love to pay 65% of ARV, but I don't think they'll accept that. We aren't going to see the property (it's a bit far away) unless I know they would accept in a range that we'd be willing to pay. I believe the house is free and clear.

I've asked if they'd be willing to owner finance, but they are not. So, if the house is in as good condition as it looks in the listing photos, maybe we could rent the house or owner finance. If we owner finance it, how soon before we could sell the note? Is that a viable option?

Although the sellers seem motivated, I don't think price wise they are motivated enough. Any suggestions on possibly making this deal work? We really were hoping to rehab or wholesale the house, but neither seems like a good option here.

They are waiting to see if we are interested before they list with a new Agent.

Thanks,
Steph

Thanks, everyone. this info was very helpful!

Steph