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Posts Tagged ‘flipping houses’

Georgian Colonial home of the Rev. Benjamin Wa...

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Still no word on our previous REO offer we made at the beginning of September.  The listing Agent did alert us yesterday that the list price would be reduced soon, which is was today ($175k to $159k).  However, there’s still no word on the Title V (septic) inspection, so that’s still in limbo. 

We saw a short sale house last Tuesday. It was listed at a super cheap price of $79k, so that drew in a lot of interest, especially since the ARV is conservatively around $180k.  In fact, when we viewed the house, there were 2 other couples there. It is a cute, older colonial home, 3 beds/1 bath.  The house was in a bit of disarray (think: Hoarders), but not in too bad of shape. It needs windows and such, but mostly cosmetics.  We put in an offer of $84k the night we saw the property.  Then, our Agent emailed us saying they wanted our “highest and best” by Saturday at 4pm.  We put in an offer of $103k and removed the part about the bank paying the closings costs.  We got word last night that we were outbid.  I wonder by how much?? 

We’re still getting bites on our inherited property mailing.  Seems some people held the letter over the summer and waited until now to call.  Hopefully a deal will come out of one of those leads. 

Another exciting bit of news is that I won Shae’s contest.  She posted a survey last week and she picked me to receive a free copy of the new product she’s releasing soon.  I’m so excited.  I cannot wait to get it because I really gotta move forward if I want to be out of my company by next July. 

We just gotta get a deal going soon. I know many people say is that it can take 20 or more offers to get a house under contract…but we’re getting pretty impatient. I am trying so hard not to get discouraged and I don’t want to throw in the towel, I want to and need to keep moving.  I know my husband was really disappointed we didn’t get the short sale house! 

I had such a busy week, especially at work, so I didn’t have as much time to review my PMBP course as I would have liked. I’m hoping to do that later this week, since I’m taking a couple days off from work. 

Happy Investing! 

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Still no word on our latest REO offer. I think at this point, the bank’s listing Agent is trying to string us along.  They still haven’t given us the status on the Title V (septic) testing, which happened over 2 weeks ago.  And he has since posted about 16 photos of the property to the listing  (there was only one lousy photo on the listing previously).  No price drop yet, though. I think he wants us to back out so he can get a full price offer from a homeowner.  Hey, maybe he can…but you’d think they’d consider any offer since it’s been on the market 390+ days. Oh well.

The rental property lead I got from Craigslist won’t work out, I don’t think.  He wants about 50k more than it’s work, IMHO.  I got a couple new calls from our July inherited property mailing (and we still have more letters to send).  So, I hope we can get a deal out of one of those leads.  I’ve been waiting to mail the last batch since those houses are in a more depressed area in our county, about 45 minutes away.  I think if I buy these leads again, I’m going to pick and choose the cities closest to us, rather than the entire county.   With working a full time job and having a family, it’s hard to make appointments as it is, nevermind if the house is 45 minutes away.

And in the meantime, we’re still looking at more REOs. We looked a two on Friday and we’ll look at two more tomorrow.  Something’s gotta happen in the way of a deal soon, right?

I’ve also started writing down goals. I had done this in the past, but not for a very, very long time.  I’m hoping if I do it this time, they goals will come to fruition.  I also made up an index card of some goals and “quick hits” so I can look at them daily.  I also am really trying to make it so I can leave my job by next July.  Maybe if I say it out loud enough times, we can make it happen.

Today I got my PMBP course in the mail. Yahoo!  I cannot wait to check it out.  I was listening to the modules on-line in the meantime.  Speaking of PMBP, have any of you with the course used the “private money getting” website to obtain private lenders?  If so, how is that/did that work out for you?  I know the SEC rules are tricky, so I want to be sure to follow all the guidelines (especially since my full time job has to do with financial services so I cannot cross those lines in any way).  

I also got my Steve Cook Flipping Home Bootcamp CDs (not DVDs) that I won from re-naming Scott Costello’s blog so I want to listen to that course, too!  

That’s it for now.

Happy Investing!

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I’m so glad September is here.  Even though it’s back to school time, August wasn’t nearly as productive as I’d hoped.  Since we pulled the plug on our REO offer, we had to start all over looking for more deals.  And we also got a little off track due to another family funeral. 😦  The fun never ends around here!

We did put in another offer on an REO yesterday.  It’s a cute little 2 bed/1.5 bath house that needs (from what we can tell) mostly cosmetic rehab.  The septic system inspection has to be done, though, to see if that needs replacing.  Anyway, the house has been on the market over a year, I think partly because the MLS listing photo (only one) is just awful.  The picture doesn’t do the house justice at all.  We offered about $80k below asking price (it’s listed at full market value, which is ridiculous).  The bank I’m sure will reject the offer, but let’s hope they counter with something reasonable.  I hope to hear by mid-week on the status of that offer.

I’m still getting calls from our mailing (we still have one more batch to send).  The one guy keeps calling and calling.  It’s an inherited house and he owns it with his siblings.  The house was listed since  June at over market value (listed at $249k, it’s worth about $200k, maybe).  I told him that we’d be willing to come see the house, but we couldn’t pay close to asking.  Well, the listing expired 8/31 so he keeps calling before they list the house with another agent.  From the MLS photos, the house looks in nice condition, just outdated.  I did also ask him if they’d be interested in owner financing, and they don’t want that, they want the cash.  What would you do?  I think he’s motivated, but if they still want close to asking, it’s not a deal, ya know?

Oh, and Steph over at flipthiswholesaler.net instituted a do-over for her 30 day challenge.  Thank goodness cuz August was a sucky month for REI.

Happy Investing!

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True Hard Money

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Well, it’s been another interesting week.  After much discussion, calls, emails, etc. regarding the REO offer we submitted, we decided to move onto another deal.  I’ll try to make quite a long story short. 

Our Agent had submitted our offer – the P&S, $1000 earnest money, pre-approval letter, etc. to the listing Agent for the bank.  Right after submitting the offer, the listing Agent said he couldn’t submit the offer to the bank with our pre-approval letter.   Personally, I could not understand why he would not submit the offer to the bank…they were probably going to counter our offer anyway.  Our rehab (hard money) lender provided me another letter, which I submitted to our Agent. She said the listing Agent didn’t like this letter either, since the letter didn’t mention the downpayment amount.  I got in touch with the lender and she said that she couldn’t note this amount (or %) in the letter yet, it’d depend on the final accepted offer.  Makes sense to me, but the listing Agent wouldn’t have it.   We tried to explain that the offer price will likely change by about $30k if the house didn’t pass Title V (septic) inspection, which was likely.  All this still didn’t matter…the listing Agent said they wanted a letter from a “direct lender.” 

So, in the past week, I talked to a couple other different lenders and got lots of helpful info.  Also, when I talked to my original lender, she mentioned that on occasion, some banks don’t accept her letter, because the bank think she’s a broker, which she’s not – she does her own loans.  Then the listing Agent suggested we offer to put more money down.  That’s when I really started to get annoyed.  Why are they asking for all this stuff when they haven’t even submitted our offer to the bank? 

After much deliberation, my husband and I decided to pass on this one.  If the bank was going to give us this much hassle to submit an offer, what were they going to do afterward?  We didn’t see the need to jump through all these hoops when there are so many other houses out there.  On to the next one. 

Have you ever had such difficulty submitting an offer on an REO?  Did you ever have a valid, thorough and very detailed pre-approval letter get rejected? 

Happy Investing! 

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Well, we had another busy week.  We looked at a few new REOs this week.  And we made an offer on one, on Friday the 13th.  That’s a good omen, right?  I guess for abbreviations sake, I’ll call it the F13 house!

The house is a 3 bed/2 bath raised ranch,  built in 1974.  It’s in a desirable area  for families with good schools.  It needs mostly cosmetic work, so we can do a lot of the work ourselves.  We made the offer contingent to an inspection and a Title V (that’s a septic inspection in MA) inspection.  If the septic doesn’t pass, we’ll lower our offer by the amount of repair (which around here can cost $20-$30k for this size house).  The price was just lowered, but it’s been listed since June.  We were told that there were no offers yet, but a lot of interest since the price was lowered.  We offered quite a bit lower than asking, but when I looked at the public records, our offer is right about where the mortgage balance was at the time of foreclosure. Although I realize this in no way means the bank will accept our offer.

When we submitted the offer through our Realtor on Friday, she called and us soon after to let us know the bank’s asset manager didn’t like our hard money pre-approval letter, which didn’t state how much we’d need to put down with the lender.  I tried to get an updated letter sent to me on Friday, but it was too late in the day to get it.  I hope I can get that all situated on Monday.  I think it’s ridiculous they wouldn’t take my offer without it, since we provided the earnest money deposit, and you know they’re going to counter anyway.  The lender is not BoA, which is know can be quite difficult to deal with.  Oh well, keep you posted.

BTW, I really need to get some private money lined up, since I think this would make our offer submissions go a lot easier.

I’m still getting calls from our mailings, even though we haven’t sent all the letters. I have to follow-up with a couple of people today.  We decided to send the final batch of letters  just before our daughter goes back to school, since it’s been a little bit of a hassle bringing her to viewings.  It’s fine for REOs but I would  not want to bring her to showing at a private seller’s home.  Although she’s very cute, she likes to hold the flashlight and even writes notes in her notebook as we’re looking at the houses! 🙂

Happy Investing!

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I wanted to give a quick update on our inherited property mailing list results so far.  We still haven’t had the chance to mail all the letters yet (we’ve mailed almost 200), and we’ve already received about 11 calls so far.  A couple people left messages saying they weren’t interested in selling, but were very nice about it.  The other new calls received were about a couple properties already listed in the MLS and a couple new (unlisted) leads.  The hard of hearing guy, and his son, called back again, too!  We’re going to follow-up on these this week (I’ve already left messages for some to call me back).  I’ve been very happy with the number of calls received from this list.  Maybe it was the fact we hand-addressed and stamped the envelopes?   We really hope the mailing results in a deal…and if it doesn’t this time around, maybe it will when we re-mail to this list in a few months.

We also looked at a few REOs on Monday…looking for some rehab/wholesale deals.  However, the rest of the week was very unproductive REI-wise, since we had relatives staying with us to attend a funeral.  So, we gotta get back into the swing of things starting tomorrow.

Happy Investing!

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Hello There,

Thought I’d post an update regarding our first direct mail campaign.  I bought that list of inherited property owners last week.  We haven’t mailed out all the letters yet, but mailed out over 100 in the past week.  So far, we’ve received 4 calls – not too bad!  I would expect more calls after we sent the rest of the letters. It’s been taking time to stuff, stamp and hand address all the letters, but it’s been a family effort (my daughter loves helping!), so that’s cut down on the time it takes to complete.

Here’s a rundown of the calls so far:

  • The first person who called was a nice guy who has a property inherited from his parents.   His brother lives in the upstairs (it’s a non-legal 2 family). The family just put a sign in the window, trying to sell on their own. I am calling him back today and we’re hoping to see that house this week.
  • The second caller left a message and I’ve left messages for him, so I hope we can stop playing phone tag and talk.
  • The third caller was a very elderly man who was extremely hard of hearing.  He just kept saying “do you want to buy my house?”  Not sure if that’s gonna work, since it was hard to have any sort of phone conversation with him and he hung up abruptly.  Even so, I will be calling him back, too.
  • The fourth caller left a message that just said “hello.”  It was an out of state phone #, so if this person lives out of state, that may be a good lead.  I called the phone # back and left a message to call him. I hope to speak to him/her soon. 

I have been able to run comps on all the properties, since I have been able to get the name and addresses of all these houses (even the last one, I got the person’s last name from the outgoing voicemail message, so I’m pretty sure which property they got the letter about).  There may be some good deals here.  For the house owned the elderly man, I searched public records and it looked like he remortgaged his house in 2006 for well over what it’s worth now. So, that may not be a deal, simply for that reason.

We’re also still looking at REOs to rehab or wholesale.  We really wanted to see that HUD property last week, but the HUD Broker blew us off.  I got in touch with another Broker and she was going to show us the house on Friday, but we cancelled since there was an accepted bid on the house the day before!  UGH!   So, we are going to have her show us a few other houses (mostly REOs) tomorrow since I have the day off from work.

Oh, one more thing – yesterday was July 17th.  What is July 17th, you ask?  Well it was my 19 year anniversary at my company.   Anyway, I talked to my husband and we thought if we can make this REI stuff work for real, I would suck it up and quit on my 20th anniversary, July 17, 2011.  (I’ve even done pension calculations to see what the totals would be if I quit next year.)  I’m so “done” at work I barely think I can make it another month, much less a year.  So, can I make that happen?  Stay tuned…

Happy Investing!

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