All Forum Posts by: Tom C

There are a lot of nice REO's in nice areas that I would love to jump on at the $30 to $35K range, but I still cannot get much more in rents, then I can get for a REO in a less desirable area at the $15 to $20K range.

An extra $50.00 per month in rent does not justify paying $15K more for a home. The trick is to find REO's that are in the middle of the road area of your market. Places where renters feel safe, but are not necessarily full of all home owners and well kept lawns.

When you find this area, that is where you want to target. Also, if a REO has been on the market for 6 months or more, don't be afraid to offer 1/2 of the listing price. My last deals were exactly that and I got them both.

Curt,

Who exactly pays you to consult them? Has any of your client sued you for such ridiculous advice?

What you are suggesting is illegal and sooner or later you will pay big time for those stupid mistakes.

If you are going to have a business, run it like a business.

Here is what my city requires..

Utilities must be on, including working furnace.

Smoke detectors on each floor. Some places require they be tied together. In this case you can buy $50 ones at Home Depot that all go off at the same time, but are not hardwired together.

Broken/cracked windows must be fixed or at least caulked with silicone.

Windows must be able to stay up on their own. Can use butter fly's in place of ropes.

Locks on windows.

Handrails on 4 steps or more

Railings on any porch or deck above 30".

Electrical systems.. If you have 3 prong outlets, must be grounded, will test. No loose wires, uncovered boxes, loose light fixtures, cracked plates. Must have at least one plug in each room. If no light in ceiling, then one plug must be controlled by a switch. GFCI's on any outlet within 42" of a water source.

Water heater, pressure relief valve with tube, 6" off floor. Can use PVC. Make sure your vent pipe if gas is at a 90 degree angle.

No plumbing leaks, even a drip..

Everything must be clean, including the yard.

Door locks, strike plates. No cracked jams.

No Holes in walls or ceilings.

No flaking or peeling paint, interior and exterior

Good steps.

No tripping hazards.

Rain gutters must work and drain away from the house. Not into foundation drain lines.

Lastly, no slow drains..

Good luck.. Let us know how it turns out.

With a 720 middle FICO up to 10, below that you max out at 4. For now at least.

Same as Mike and Tim. I already know before I even go the property whether or not I am interested in making an offer. If the house meets my criteria during a 15 min walk through, I make an offer on the spot. There is no point in looking at a property, going back, running numbers and then looking at it a second time. By this point, if it's a good deal someone else will have it under contract.

If you don't have any cash, where are you getting the earnest money? I haven't seen a bank yet accept an offer without at least $1000 with your offer.

Not this helps, but any REO I bought, the bank either paid all back taxes or credited unpaid taxes back to me at closing. I have never had to pay for back taxes on a REO, nor would I. If for some reason the bank expects you to pay them, then that automactically comes off the amount you offer.

Sorry Josh, my bad, but it was a good one. lol

"Hi my name is [SCRUBBED BY ADMIN] and meet my friend [SCRUBBED BY ADMIN]"

:)

I'm with Mike.. I put the money to work for me and my deposits are always the same as the monthly rent.