All Forum Posts by: Steve M.

it depends ...

no bank (in my opinion) enjoys being lowballed.

do your DD, write out the fixes that need to be done, and put in a competitive offer....

every offer I put out on a foreclosure, some being as far as 30-40% under asking, I write out my concerns with the property, cost of what it will take to get it up and running, and my thoughts on what the fair market value is with comps.

it works more times than not believe it or not ... I'd love to get props at $.10 cents on the dollar, but RE is about relationships. The ones I develop now (including banks & underwriters) may very well help me from here on out.

My last property I just picked up (5th door), wrote out a competitive offer, including everything like the above. After several intermediary discussions between agents/banks/etc... i got an acceptance AND $$$ to fix some of the stuff. No counter needed and I got it for about 52% on the ARV :) Little did they know it would only take several thousand (less than $5k) to get her perfect. Pick apart a house from top to bottom -- even things you wouldn't touch or change.

Don't hesitate to put tons of offers out there, just don't burn your bridges doing it, is my advice :)

SR

is there a reason you haven't tried to go conventional? especially with the rates where they still are right now .... i'd try & go that route before putting up more properties for a single loan, not to mention, you are likely looking at a balloon payment after 3 or 5 years and less than stellar rates.

exactly as Mitch described. This is what I have done with my single currently financed property.

One word of caution ... The bank can "Call" on the loan, meaning, if they find out you have quit claimed it, they COULD call for the amount owed on the loan then & there. If you don't come up with the funds, they foreclose on the property. Now, the chances of that happening are EXTREMELY low, assuming you keep up with payments, but it can happen.

Its a risk, but a risk I think is worth it in the end. Just an FYI :)

Good luck!

what types of banks are you looking in to?

Commercial banks with more than 10-15 branches - not even worth it.

Small regional banks with <$1 Billion in holdings is probably your best bet.

The only one I talked to that I even had a CHANCE with, was a small Farmer's Bank. Instead of going to the commercial loan side, I went straight to the Director (? not sure what you call higher ups at regionals)

After about 20-30 minutes of discussing our goals, they seemed to be ok with everything. We have to put up 2 properties for about $100k, but we did get our foot in the door.

at the end of the day, I wanted to max out our current mortgages with BofA (I currently have 2 with BofA) and ended up with a conventional loan - 20% down - at 5.125% which is great for an investment prop. It has now been quit claimed in to my LLC although the loan is under my name.

Don't believe I will ever get called on it, but you may want to try something like i did if you have trouble finding funding for your LLC.

i've had zero issues going conventional ...
underwrite & close (from start to finish) on a short sale in under 3 weeks. Total time from Offer to Close was about 6 weeks. Pretty darn quick for a SS, and the title company said it was one of the "hairiest" titles they have ever insured. They said they had to clear something like 5-6 issues up before closing.

also preapproved on my next conventional as well :)

o ... and the conventional rates I am getting are between 5.25% - 5.325%.

and this has all been done by a large bank .... BofA!

if you move your property in to the LLC from your name (assuming the loan is under your name) you quit claim it. Essentially, if the bank ever calls you on that loan, you will have to pay the full balance or they will foreclose on the property.

1) either deed it properly and don't quit claim it
2) have enough cash reserves "just in case" you get called on it, and move it in to your LLC

investment conventional conforming loans are few and far between (if they even exist this day in age)

i've gone with option #2. i quit claim my financed properties in to my LCC, and have yet to be called out for it. Assuming payments are always on time, and everything "looks" kosher, i highly doubt they ever will call on it. either way, I have cash reserves high enough to where I can pay for the property then & there if I ever do.

my suggestion .... hold the title & loan in your name and get an umbrella.

i have an LLC, and S-Corp, and props just under my name with a $2M umbrella. The umbrella costs me $162/year. BUT, you do have to keep certain coverage limits everywhere else (IE: Car is and houses are at $500k limits)

sorry for the ramble, its 2:30am ...

Welcome to you too Flash!

BP is a HUGE place .... You can read for 10 years straight and there would still be tons of info/threads you haven't read!

Good luck to you as well, and if you need anything, never hesitate to ask!

Welcome from Nashvegas :)

Take a look around, don't hesitate to ask questions, and I wish you the best of luck!

Vikram is correct .... atleast, that is what I was told both by my bank (BofA) and my CPA.

CASH Transactions over $10,000 are reported (whether that be withdrawal or deposit) Wires/Cashiers Checks/Personal Check's over $10,000 aren't reported UNLESS the bank feels something "fishy" might be going on.

And I really feel, the only reason they report cash is for 1 main reason.

Drug Money/Money Laundering

EDITED TO ADD: But ... Again ... YMMV. Talk to a CPA or Tax Accountant you trust, and also try speaking with someone at the bank.

First things first .... you need to find out what the payoff on the note is, and just how delinquent they are on their payments.

I'd likely try to introduce yourself to your neighbors .... Get friendly with them, and let them know you are only trying to help. See what information you can get from them, then go from there. The foreclosure process is a LENGTHY one and not pretty.

Doing this without a broker/agent, assuming you don't have much knowledge of RE, would be a pretty difficult task. Assuming you find an agent that can work with the bank, and get you an AWESOME deal, they are worth their weight in Gold.

Good Luck