All Forum Posts by: Vangie Gal

Interesting post.  Several items stick out at me.

1.  Purchasing a Triplex in North Hollywood would appear to have a premium price tag

2.  Living as a landlord next to your tenants is a challenge

3.  Living as a landlord next to your Section 8 tenants would make for interesting television

I'm curious how this plays out.

@Tim G.

When you put your offer in did you contact the REO agent directly, or did you use an agent to make the offer? When you made your offer at $60K did you use any contingencies, was it an all cash offer, utilize comps to support your offer price? Who were you negotiating with, the REO realtor or the bank directly?

@Laurie Souders
@Tim G.

Yes it's a Fannie Mae property and the listing suggests that financing is an issue. However I did see it on the Home Path website. I am currently researching the property. Apparently the physical description does not match the county records. Not sure what process is need to be taken in this situation yet, ie: removal of the illegal structure(I'm assuming there is one) or obtain necessary permits etc...

What would be the difference if it was a Home Path listing as opposed to a Fannie Mae property? Can the property be both?

@Ned Carey Thanks!

I will contact the agent this week and post my progress and experience.

@Bryan L.

When you made your offers did you present your finding(needing rehab, holes in the wall, non-permitted structures etc) to the listing agent, to justify your low offer? If so was this submitted with your initial offer or with your counter offer? The property I'm looking at is now at 150 DOM and I'm preparing to contact the listing agent to open dialogue.

Also any advise on questions to ask the listing agent? @Mike Sattem @Will Barnard @Ned Carey @Jon Holdman

@Jeremy Baker So after debt service, HOA (ouch $500! I recall having one in Oahu and it was creeping up also) and expenses, you're roughly getting $250 a month in positive cash flow?

If you don't mind me asking, how much are you renting your unit for? Are you renting it by the day/week/month, short term lease or combination? How are you getting your renters (VRBO, leasing agents, craigslist, marketing on your own)?

Who does the turnover cleaning, renting, check-in/check-out etc?

I'm assuming you also use the condo yourself? 89%-91% occupancy isn't bad.

@Jeremy Baker - I'd like to hear some details regarding your condo in Kihei. What was your purchase price, what are your HOA dues, do you rent it solely as a vacation rental, what's your NOI? I'm interested to hear more, if you don't mind :)

@Brian L.

Thanks for sharing! It gives me another way to look into this. Can you give a detailed example of an REO you made an offer that was accepted(DOM, communication with listing agent/bank, negotiations, amount of time it took, if there were other offers etc)

If you can also touch on why you think the bank took your offers:

List 74, offered 45, they countered at 48 and I took it (65%)

List 59,900, I bought it for 22,000 (37%)

Thanks everyone for your responses! Great advise and insight.

This gives me more assurance in formulating a strategy for this property.

I have the ability to make an all cash offer to close, that's why I was wondering how low I should offer to begin with.

80% of the listing price could make the numbers work, but I need to find out what specific work needs to be done, ie: non-permitted work that might need to be torn down, plus rehab costs etc.

The current listing price is slightly above market comps then you add in rehab.

Would anyone like to share some REO experiences of low bids that were accepted offers?

@Ned carey

Thanks for your thoughts Ned, much appreciated. Have you had any experience of putting an extremely low offer on an REO and got it accepted? If so would you mind sharing your experience?

I've seen different strategies investors use when dealing with REO properties and wanted to get more insight on people's experience putting in offers and getting them rejected or accepted.