All Forum Posts by: Eddie P.

That usually is the case with Fannie Mae or Freddie Mac homes during the first look period, and some HUD homes. Supposedly its to give owner occupants an opportunity to purchase a home without having to compete with investors. I recently submitted an offer on a Fannie Mae home locally and although I was the high bidder and offered better terms(cash), they chose an owner occupant offer. I refused to sign the form since I did not want to face a $10k damages claim as stated on the form and even worse get blacklisted from future purchases.

I remove all affected drywall and insulation if its interior. Then will spray the studs down with bleach, wipe it down, then spray it with a product called Microban which is what's used in hospitals and by some mold remediation companies. Of course you must eliminate the source of the moisture first. Also, make sure you have good ventilation, seal off the area you are working on, and turn off the A/C to avoid spreading spores all over the place.

I've had to rehab a few hydroponic grow houses here and this is what I was instructed to do by a buddy who works for a mold mediator.

That is definitely the scenario here in Miami. Every morning I watch the court auctions(online here in FL), the price these people are paying makes no sense unless they are in it for the long term instead of a quick rehab/flip. Even then, they are walking into the unknown as far as condition of property, holding cost, repairs, etc. I was bidding on a house here that was worth $140k rehabbed but needed about $50k in major repairs and municipal fines. Incredibly, an investor bid it up above $120k. After a few days I check the status online and the clerk had tagged it "bidder walked", losing 5% deposit in the process about $6k+.

Makes you think some investors just bid blindly without any due diligence

Definitely lots of foreign money in this area buying up whatever inventory what they can get their hands on.

Same here in S. Fla. , Supply is very limited for flipping, Most properties receive multiple offers within days of coming out and it's not uncommon for offers to go 10k-30k over asking. Last couple months has been really bad, over 90% of foreclosures going through auction are taken back by banks.
Freddie and Fannie homes are snatched up during the first look period. Margins are real tight on the few you can get you hands on.

I am presented with an opportunity to purchase a wheelchair accessible home from a local bank for $68k. It's located in a desirable area in a mostly retirement community in sw fla. Besides the huge roll in shower and bathroom, it features lowered kitchen cabinets, higher outlets, lower wall switches, widened door entries and hallways. This would be my 23rd flip and I'm a GC, so I know the cost and timeframe it would take to convert it back to regular home,($18k). If I just do some minor rehabbing and leave it as an accessible home I would spend about $9k. ARV is about $129k for this home. The agent for the bank has not marketed this as an accessible home. Should I do the light rehabbing and market it as accessible or do the full rehab of changing kitchen, vanities, outlets , etc. I'm sure someone paid a lot of money for these modifications and I would hate to devaluate the property.

Looking for opinions.

Same thing here in S. Fla. It's all about who you know and how much you're willing to kick back. I've given up on REO listings all together and mostly concentrate on court auctions or Short sales. My offers are always cash and I offer aggressively for properties, but have many times lost out to the mysterious last minute offer that's $500-$1000 higher. How about the property that becomes active and 48 hours later goes pending even though the agent never responds to showing instructions or any request for information?