All Forum Posts by: Walter Grewe

Sorry I missed it. Please let me know when the next one is scheduled.

Marvin Song it was listed in the MLS sheet public comments.

Nathan

No deferred maintenance it appraised for $119000. All that other stuff you mention will be handled by myself and my partner. 

We also pocketed $2600 in commission on the deal so that will help defray any CAPEX.

The first lien will be paid off in 3 years putting us in a better than 75% LTV. We are not expecting any profit in the first three years. We are long term buy and hold.

My partner and I closed on our first duplex yesterday. It was something I stumbled on while looking at homes on our local MLS ( I'm a licensed Realtor). The seller was offering to hold a 20% second so we jumped on it. The only financing we were able to find was a local bank willing to do 75% LTV with no regard where the other 25% came from. The seller agreed to move up to 25% with a 3 year balloon at 5% interest. The local bank offered 3 year ARM at 5% with a maximum 1% increase per year. The ARM renews every 3 years with a maximum 9% increase over 30 years. So here are the numbers. Sales Price $114950 Seller paid closing costs $2500 2 units $600 a month = $1200 1st lien = $462 2nd lien. = $154 Taxes monthly. = $118 Insurance monthly = $72 Water. = $40 Monthly Profit. = $354 The best part, I also received a 3% on the sale $3448.50, which after I deduct the taxes I need too, will be deposited into our company account. Total out of pocket, $350 for appraisal and $500 EMD. Our intention is to pay down the 2nd lien with $250 of the monthly profit in order to erase the majority of that within the 3 year timeframe and refinance into a conventional mortgage at that time.

I have been listing properties for HUD for 4 years and my experience is the accept bids in chronological order.

Example- Bid #1 submitted 1st day of listing is full price offer, 6% commission

Bid #2 submitted 2nd day of listing is $10,000 over list, 6% commission

Bid #3 submitted 2nd day of listing is $15,000 over list, 6% commission.

HUD accepted bid #1 because it met their criteria for this property. How I know is because I was the listing agent and I entered the 2nd & 3rd bids. I saw the accepted offer when I received the fully executed contract.

If I am representing HUD as the listing agent and I sell the property to a buyer the first thing I do is have them sign a disclosure that I represent HUD and am working for the seller. I also explain to them that I will be receiving the full compensation for the sale.

I have never had anyone question this or want to use another agent.

I have sold over 50 HUD assets.

Cuong, We both have cash reserves set aside so we will be cash buyers.

Hello

Getting ready to jump into the rehabbing business. Ive been in residential real estate for 6 years and my partner has been a contractor for roughly the same time. We will be starting right after the New Year to find our first flip.

Looking forward to the education, insight and knowledge provided here.