All Forum Posts by: Omid A.

That's hard to answer without knowing the scope of work involved and the costs associated with that, in other words your cost of repair. 

At over 60k payoff amount and comps in the 90s it doesn't sound like much of a deal unless the house needs very little to no work, in which case you do have options to monetize this lead if the seller's price expectations are in line.

@Tom S. @Account Closed

I'm sorry I believe I have used the term "underwater" incorrectly. What I meant by that is she is late on her payments by 3 months and the property is going into foreclosure so she just wants out of the property and I can give her that. 

I didn't ask her why she doesn't just sell it on the MLS herself, although she could, but my guess is she wants to hit the easy button and exit the property with ease.

Anyone?

@Richard Dunlop It got to 229 through appreciation in the market. She has not been able to make her mortgage payments and is going into foreclosure. The equity was forced through appreciation. Make sense?

Hello BP,

After nearly a year of educating myself and reading through these forums constantly, I took some action and began marketing direct to sellers via direct mail. I now have a lead that has come in, a lady who is underwater with her mortgage while also going through a divorce. The property needs some minor updating and no major repairs. She wants out of the property and a few thousand walk-away money. She can be out of the property for a total of 177k, so I'll give her 3k on top and settle it at 180k.

She has agreed to let me take the property subject-to. I am fully aware of the due-on-sale clause and have fully disclosed it to the seller. Considering I'll be out of the property within a month or two, there is not much risk to that.

Comps are at 225k and my plan is to give it a paint job and list it on the market. My question is this: if the deed is transferred to my name, is it at that point when I can list the property on the MLS? Also, how would the fact that I bought it subject-to affect the transaction on the MLS, could I still sell to an FHA buyer? Does the fact I bought it subject-to complicate the process of selling via MLS and how? Any help is much appreciated.

Thanks a ton BP, I owe it to you all. 

That's great, once you get a deal it's all about keeping that momentum going. What list are you targeting and how long have you been mailing it?  

Hi Ashley,

I would just send them a yellow letter with handwritten address on the envelope. I am from the Portland area myself and can see the opportunity in this. Let us know how your campaign goes, best of luck.

Here in Oregon you can get connected through a title company with an online database that allows you to search by address for the owner name(s) and mailing address. It may be the same in your market, look into it and find out. Driving for dollars is a true and tried method.

Would you share with us how you acquired your deals? What method of marketing did you use, if any?

Hello BP. I am curious as to what everyone's opinion is on this matter. If you live in a market with a high price-to-rent ratio, such as my Market here in Portland, where cashflow is impossible or very difficult. What are your thoughts on buying one that is cash flowing negative to use as an airbnb rental property? I realize it takes more work, but could one consistently create positive cash flow at the end of the month using this method?