All Forum Posts by: Wes S.

Tony: Way to Go! Nice numbers...Good Dough for 46 Days!

Tom: Those are some good purchases comparitive to rental income...Interesting to see that average entry price is ~ 66% of List.

Good margin of Safety (s)...

Tom:
All deals, let us know the year it was if you want. I know there are a lot of variables to these deals but I just want to see what the final #'s are.

I've followed and tracked alot of HUD homes, in different markets and see the acceptance price is ~ 85% of Listing Price.

Jeff,
It is off b/c it was my first deal and first home a while back. Sold without a Realtor...in the end, it worked well for me and walked away with good $.

NOW, Back on Topic. Get your deals on here... :) No Armchair Investors. :)

I'll kick it off:

Property 1:
- HUD Home
- List Price: $101,000
- 1st Offer: $87,000
- 2nd & Accepted Offer: $91,000
- DOM: 25 Days
- Sold last fall for $125,000 after $8k in upgrades.

Property 2:
- Citimortgage REO (Dec '09)
- List Price: $35,000
- 1st Offer: $31,000
- 2nd & Accepted Offer: $36,500 (I know...I got caught up in my 1st "Highest & Best" Bulls**t & learned a lesson. Overpaid but worth it IMO in my little market here. Just appraised for $91k after $8k Remodel.
- 10 Days on Market

Please list your REO situation: Who the Bank was, list price, the offers you submitted, any counters and finally the acceptance price.

My goal is to give all of our BP friends a leg up in approaching their next REO deal. As we all know, it all comes down to the numbers at the end of the day.

****I know these prices and properties are dependent upon condition, DOM, ect.... We get all that so please keep it short & sweet...just want the facts.

Thanks. :D

I put a short sale in process back on August 15th, 2009 for a home and it is still in Phase I of the 3 Phase ShortSale Process...basically hasn't gone anywhere in 5 Months! I know they take a long time with them but not usually this long...

It is a Single Mortgage $80k Balance with CW/BOA and I have an offer for $43k, which it needs an overhaul...I may go a little higher but not much.

I am wondering if anyone has experience with Equator Financial Solutions and their ShortSale Philosophy? Process? Contact?

I am thinking about bowing out of the process with BOA/CW and starting over with Equator....

Anythoughts People? Thanks.

G.F.

I just called around and asked who handled this property that is in REO.

I first called CitiMortgage (800) 283-7918. I then was transfered to the actual REO Department where they manage, maintain and realtors contact point to sell the property.

That Number is (800)-392-7906 - CitiMortgage REO Dept. From here, wait a little bit on the recording and then Press 3. You'll get in touch with a gal and just question her like crazy about the Property you're wondering about...she'll say that an Asset Manager can call you back and Boom! Your in business.

The Asset Manager I talked to was nice but I asked him dozens of questions about process, what he's thinking for numbers, other players and pushed him about Offer #'s to which they can't divuldge but ask him 'ball park figures' or 'is it close to ...?' type questions, you'll narrow it down even further.

He told me that the Appraisal #'s they received were in the $46k-$48k for this property, list price was $34,999.

Also, couple tips: Close ASAP, send cash offer with $2,500 Earnest Money and no contigencies...your offer will stand out like a sore thumb and you'll be filling your pockets with dough.

Update:

CitiMortgage got back to me with an acceptance of the $36,500 offer upon their agreement and they also wanted $2,500 Earnest Money.

Nice little property, walk in with ~ $35k Equity, $150/Cash Flow after tune ups.

wow, this is huge! especially the last one...'Fully Released' liability debt...

Do you know if this is per state driven or all over...

I would think the Banks will start to spit these suckers out now...$1K a pop. Maybe wishful thinking as I've had one in the works for 5 months now and nowhere near complete.

Thanks for the info.

I do a lot of Repairing, Repainting, Refinishing, Replacing, ect, ect. Whenever you write out a check in the memo line put Re- ... You can deduct the expense if it was to Re-something to the property to make it in the same livable condition again.

If it is adding more value or improving the property, then it needs to be classified as a CapEx and depreciated over 27.5 years.

You replace that $100 toilet, that should be a immediate deduction. Best thing to do is interview some CPA's and it is worth paying extra for an Accountant who knows how the system works and can leverage your business.