All Forum Posts by: T. Story

Investment Info:

Small multi-family (2-4 units) fix & flip investment.

Purchase price: $1,000
Cash invested: $30,000
Sale price: $90,000

I had bought total of 5 homes off another investor and decided to sell this one right before the pandemic hit.

What made you interested in investing in this type of deal?

I like to invest in very distressed properties in low income neighborhoods

How did you find this deal and how did you negotiate it?

Mutual investor friend.

How did you finance this deal?

Cash

How did you add value to the deal?

Renovated the property, got it cash flowing and back on the tax map.

What was the outcome?

A fully updated property that sold at market value after sitting vacant for 10+ years.

Lessons learned? Challenges?

Challenges were the legal code violations, more or less proving to the common pleas court we were a reputable out of state company trying to help the community not completely profit off it.

Investment Info:

Single-family residence fix & flip investment in Buffalo.

Purchase price: $79,000
Cash invested: $35,000
Sale price: $230,000

Basic Flip.

What made you interested in investing in this type of deal?

The market was on fire

How did you find this deal and how did you negotiate it?

I find all my deals.

How did you finance this deal?

Cash

How did you add value to the deal?

Renovated the entire property.

What was the outcome?

Very good Profit

Lessons learned? Challenges?

Nothing new.

 I do want to Add, I never need financing, everything my firm buys is with cash and our own lenders. My offers on all the Homes they have is always Cash.

 It sounds to me like classic PreReo, I know exactly what your talking about once you have signed a few forms. The ticket to this is you have to stay diligent. You have to force them with everything, call follow up email every day. You should already have a Lawyer on the team who’s also doing that from his or her office as well. 

If your working with this company and this company only and think that they are going to get you to the finish line to get the title in your name, well I’d say you’d have a better chance at winning the lotto.

What some don’t know is they are not a one stop shop, the more you get dragged along the more money PreReo makes, again they are basically a wholesaler, the longer it takes you to obtain it the longer you pay them. That’s how they make money.

You need a good reputable real estate lawyer to see you through this. 

As I mentioned in my post, if you don’t have a proper team in place to work on deals like this depending on this company to see you through is just smoke and mirrors.

Thanks why won’t deal with them anymore. It’s not going to make you money in fact, youd be better off flipping a house in Ahmerst or Clearence or Orchard park paying full market price for it updating a kitchen and bath and then re selling it for 60k more. With less headache. You’d make the same amount of money with less work headaches.

I would get you an attorney ASAP. Seems like you got trapped into the prereo scheme.

I wish you very much luck!

I’m based here in NY and my process to obtain title in my company name has not taken 2 years. It took about 8months pre Covid-19.

How does the insurance work if your not the owner,  a well versed company who has experience in buying non performing loans, and you hold interest in the property everyone knows it can be insured. It’s the same kind of policy when you own a home through a trust. Just gotta find a good insurance company to work with. 

Nobody is doing monthly inspections on PreReo end either lol they can’t even get the first guy they send out to take pictures to do it right. 

PreReo is just a technology company for note holders. They don’t have any law firm they work with, that’s all BS they list NPL for title and note holders.

I buy and Sell a lot of homes, I have worked with all types of Business as well that do this, PREREO is nothing more then a Wholesaler, nothing special about this place. No deals to be made or even money to be made. 

Bought a home from PreReo. My experience was all bad, first it took months to get them to come down anywhere on a reasonable number. Remind you they selling homes been vacant 5 years or more with lots of problems.

Leaking roofs, falling down foundations, mold rodents and past debris from previous tenants or owners.

The process to buy these “pre reo” is actually a long one. They list all of these properties at prices that house in the area are selling for. You may place a bid even a reasonable one and they reject it or counter it for $1000 less then their asking.

I read Some of these comments and someone said they have a law firm attached to them to help this process to obtain the actual note. Yea that’s pretty far fetched. I closed for both sides and had a chase them round for final signatures.

Also might I add the property could be falling down, you basically have to send your staff out to take pictures and videos to send to them to get them to even budge on any price.

These homes they have have been sitting a long long time and most cases they are on the city’s list of zombie homes and ready to be demolished, you won’t find that out with no title search and survey, you find that out the day your workers show up to work ready to get this thing back to livable to be met with more money spending ventures.

Bottom line. It’s a huge crock of BS. They basically trying to sell vacant abandon homes for top dollar that have huge problems, they will even send you the comps in the area. That’s funny to me they compare a home that’s taking on rain from the outside inside, basements full of water all the windows broken, everything is wet and has to be re paired. They compare that home to others selling in the area. Hilarious if you ask me.

I think anyone who’s trying to sell homes like this for the amounts they are asking lack basic skills in the real estate world. Trying to get the full what’s owed on it back. Good luck with that.

Who counters offers at $1000 less then the already asking price, they want 85k I offer 35k they counter at 84k.

Stay away way better places you could buy non performing loans at. You don’t need to deal with this place.

Average home they trying to sell sits on the market for 2 years or more. On top of it’s been sitting for 5 when they picked it up.

Investment Info:

Small multi-family (2-4 units) fix & flip investment in Buffalo.

Purchase price: $189,000
Cash invested: $100,000
Sale price: $400,000

Fire damaged home, completely rebuilt the back of the building then sold privately.

What made you interested in investing in this type of deal?

I like to buy very distressed homes.

How did you find this deal and how did you negotiate it?

Personal Friend owned it.

How did you finance this deal?

Cash

How did you add value to the deal?

I added value to the deal by rebuilding the back of the home to be able to sell for more, it was no longer a total loss after my company got involved.

What was the outcome?

Positive cash Flow.

Lessons learned? Challenges?

None

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

No

Investment Info:

Small multi-family (2-4 units) fix & flip investment in West Seneca.

Purchase price: $8,500
Cash invested: $4,500
Sale price: $45,000

Bought to fix and flip, put a new roof on and market was so hot I flipped it quick.

What made you interested in investing in this type of deal?

I like buying extremely distressed flips.

How did you find this deal and how did you negotiate it?

R.E.O bank owned

How did you finance this deal?

Cash

How did you add value to the deal?

Putting a new roof on, also providing architectural prints for renovation.

What was the outcome?

Large Positive cash flow.

Lessons learned? Challenges?

None

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

No

Investment Info:

Single-family residence fix & flip investment in Dunkirk.

Purchase price: $19,000
Cash invested: $40,000
Sale price: $107,000

This was a very very distressed single family home we bought to flip.

What made you interested in investing in this type of deal?

Positive Cash Flow this was a no brainer.

How did you find this deal and how did you negotiate it?

R.E.O Bank Deal

How did you finance this deal?

Cash

How did you add value to the deal?

Completely renovated this single family home.

What was the outcome?

Sold to a new happy Homeowner

Lessons learned? Challenges?

None

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Lou Dispenza

Investment Info:

Single-family residence fix & flip investment in Dunkirk.

Purchase price: $19,000
Cash invested: $40,000
Sale price: $107,000

Flip.

What made you interested in investing in this type of deal?

Positive Cash Flow this was a no brainer.

How did you find this deal and how did you negotiate it?

R.E.O Bank Deal

How did you finance this deal?

Cash

How did you add value to the deal?

Completely renovated this single family home.

What was the outcome?

Sold to a new happy Homeowner

Lessons learned? Challenges?

None

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Lou Dispenza