All Forum Posts by: Todd Gustafson

After a few phone calls, I was referred to a loan officer who was familiar (and seemed knowledgable) about the types of unconventional loans mentioned on this thread. I filled out an online app and crossing fingers at this point. Curious to see if I'm approved without a co-signer and for how much.

WOW!!! Thanks everyone!

This is wonderful and a bit overwhelming. I'll need to research some of these terms, types of loans, etc, but first a lender. Would I have a better chance with a credit union or small bank? Does it matter? I don't think my credit score is terrible, but I did file bankruptcy back in 2004. Hoping that has been removed from my record by now. In addition, I have a family member potentially willing to help me as a co-signer.

Again, this is amazing. Definitely the best niche social networking site I've belonged too.

Many thanks,
Todd

I planned on it. I'm not going to tackle the first one by myself. Since I need a place to live, I consider this my 1st deal; get my feet wet, determine if I want to pursue more deals down the road.

My only concern is finding a knowledgable agent for REOs who is willing to work with me knowing that I want an inexpensive property. If I can't find a really good deal, I'll probably rent for now. I suppose the angle I should take is the potential for future deals with them. I dunno???

First, thanks everyone for the detailed responses.

"When you buy you're "renting money" paying interest, and that money is just as "thrown away" as rent money. So, take a complete look at the costs of buying vs. renting and your life situation before you jump into ownership."

Excellent point which I did not consider. I'll have to put some thought behind this concept prior to making a move.

Based on the 3 responses, it sounds like I need to find a lender first and see how much I'm good for. Next, I find an agent who is familiar with the REO process. Third, the hunt for a property begins. Does this sound like the correct path?

In addition, how do Sheriff sales tie into REOs? I found a nice list on the website with the auction (I'm guessing) dates posted. There are "writ" amounts and some have appraisals. for both REO's and these sheriff sales, will they accept low ball offers or do you generally have to go with the listed price?

I'm looking for a very inexpensive property. My goal is to pay off debt which I've made a lot of progress but want to be completely debt free less a mortgage (for now). Rent in my area is an easy $700 plus for anything decent. So figure a cheap house now I can rent later once I achieve my goals.

Thanks again for all the great info. The power of the internet is an awesome thing.

Hi everyone,

Here is my situation:
I studied real estate investing some a few years back so familiar with the terms. I didn't pursue it because of divorce and an unexpected career change. After living with family the past few years, finishing college, and paying off some of my debt (working on the rest), and landing a new career (possibly even a 2nd which has more promise) - I need to move out in December. I'm 35 and the past few years have taught me A LOT!

When it comes to REO, this is in reference to a property owned by the bank. Am I correct that it is that simple? This is not necessarily a foreclosed home, correct???

In addition, do I simply go to nearby banks and ask for a list of the properties they own? I make a modest salary but with the new career will likely stay in the same area for a while; therefore, I'd prefer to buy than rent. I need something very inexpensive. I'm single and my daughter lives out of state so I can get away with a small place.

I'm trying to paint a picture for everyone. Would making offers on REO's be the best shot at landing a great deal? Is locating and purchasing the home by December realistic?

Any help, direction, or advice is greatly appreciated.

Looking at 3 potential buys tomorrow but passed by one this evening, briefly. I plan to wholesale this deal if the numbers are right.

Comps - 120k - 133k
Asking - 69.9k
Repairs???
home is 1056 sqft, 3/2

Motivated seller accepting all offers and paying $5,000 towards closing. Listed with agent and does not appear to be an REO, will confirm once I get past estimates.

My concern comes with estimating repairs as a wholesaler. I've read a lot of opinions and methods, but still unsure of the best way to go about it.

It doesn't seem practical to pay for a professional estimator as a wholesaler. I've learned of short cuts like the squarefeet multiplied by 20 for example (this home needs a lot of work, but i have seen worse). As a general guideline, this may work, especially if you adjust with a hedge factor. But I have yet to do a deal, so do wholesalers pay for estimates each time?

If you wholesale, how do you estimate your repairs and know you are passing on a great deal? Thanks.

I've read other posts about buying an REO and the buyer cancelling at the last minute. I've yet to see a satisfactory resolution should a deal fall through at the last minute. I'm interested in using HML and PL so I can do more than 1 deal at a time.

So, what happens if I close with transactional funding, HML, or PL and my buyer doesn't show up or calls off the deal? Does transactional turn into a loan with my HML or PL? Am I charged so many points each month until paid off or how does this work?

I'm trying to avoid as many problems as possible being new at this.

Vince and Herb, I think I screwed up as well. Discussed this with my agent a few days ago and then watched some vids on Youtube by Steph in tampa. It makes sense to me now.

Buy the REO from bank and ask for a courtesy close with the title company of my choice. The bank completes paperwork for the A - B loan (bank selling to me), then once the paperwork reaches my title company they close thatdeal and agent gets paid. Immediately after, they close on the B - C loan (me to my end buyer). So, the agent is out of the equation at this point.

IS THIS CORRECT? DO I FINALLY HAVE THIS FIGURED OUT???

Please tell me this is how it works?

Mr. Keating, I'm exactly where you're at in this game. I'm ready to do my first deal but there are sooo many factors.

Good luck to you and let us know when you buy the 1st property.

One more thing, I can logically see where comprising one's own comps is most beneficial. However, I'm sure there are different methods of doing so. Not every investor has access to the mls, I would have to assume. I'm learning. That said, I have to get my feet wet somehow and start developing relationships with others in the business.

I like your idea of becoming an agent. In the meantime, what about internet site that do comparative analysis? I recently learned of Zillow or something similar perhaps? do these work?