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Posts Tagged ‘foreclosures’

Well, it was a slow week REI wise.  I had a really busy week at work and also was not feeling great.  Also, a lot of REOs we were interested in were no longer available this week.   I assume this is because offers were made, not due to the recent suspension of foreclosures.  We’re going to get going and look at more properties.  I am thinking we may need to start looking at less REOs, if the suspension of foreclosures becomes more widespread.

We also sent out the rest of the inheritance letters a few days ago.  We also sent follow-up letters to people who had contacted us as a result of the first mailing, but were not interested in selling.  I’m hoping to get some bites on those letters.

I also have been doing some private money research.  I was looking at the county deed records and noticed this one person’s name show up over and over.  Well, from what I can tell, this dude is a big time private money lender, lending to real estate investors and development companies.   I figure I can send him a letter asking him to see if he’s interested in investing with us.    However, I do want to be sure I’m SEC compliant and do things the right way.  I also don’t want to look like I was stalking him or something.  I need to check my PMBP course to see if there a letter template for such a scenario. I haven’t found it yet, but I only looked quickly so maybe I missed it.  I need to do  more research.  In the meantime, I thought I’d draft a letter saying something like I noticed he lended to other real estate investors and wanted to see if he wants to invest with our company.  Any suggestions would be helpful!

We’ve also been talking about changing our investing strategy a bit.  Not that we don’t want to rehab or wholesale, but we are also thinking about focusing more on rental properties.  We have seen a lot of good deals lately, so we have been looking at more multi-families instead of focusing on single family homes.

Have a great week!

Happy Investing!

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Just wanted to do a quick check in.  This week, work and family stuff have been keeping me super busy!  Even so, we’re going to look at a property tomorrow that could be an awesome rehab deal.  Although we’ve been focusing on wholesaling, the numbers on this look so good, working it as rehab might be worth it.

The house is a foreclosure – 4 bedroom, 2 bath, 2 half bath colonial on 1.3 acres.  It’s got a nice yard and inground pool.  The inside is ripped down to the studs in a couple rooms since the pipes burst while the house was vacant over the winter.  It’s built in 1985, so we wouldn’t have to worry about the new EPA lead law crap.  Also, the house has town sewer, which is a big plus around here.  A lot of houses have septic systems, which in MA are super expensive to fix (called Title V).  A full septic replacement can run $10 to $30k, which is crazy…and can really eat away at your rehab budget.

The ARV is about $450k (conservatively), listed at $274k.  We’d need to get it in the low $200s (or less) to make it a deal…but we won’t know for sure about all the repairs until we see it tomorrow.

I’ll keep ya posted.

Happy Investing!

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A recent survey suggests that home buyers view properties in foreclosure unfavorably. This time last year people were looking for rock bottom deals to couple with their federal tax incentives but now that the tax incentive is nearing its completion, the housing inventory is still increasing while the number of buyers is decreasing.

[picapp align=”none” wrap=”false” link=”term=foreclosure&iid=6678595″ src=”9/4/d/b/Sales_Of_Existing_5fa9.jpg?adImageId=12999176&imageId=6678595″ width=”234″ height=”160″ /]

The reason for the change of heart? Many buyers are concerned about the decreasing property values and the risk of buying a home in foreclosure. There are also the time and money elements involved: purchasing a foreclosure at auction takes time just as it will take time to complete renovations to the property.

Does this mean more deals for us investors?

View the Original article at TheREIBrain.com.

Happy Investing!

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With all the talk of bailouts and loan modifications, one would seem to think that there will be less foreclosures out there…or at least you’d hope more people would be able to save their homes.

Here’s an interesting article regarding a lot of loan modifications that are not going through, so there will  be more foreclosures on the horizon, instead of less. 

I’ve heard a lot of buzz around that a ton of people that are applying for loan modifications (mods) don’t qualify for a variety of reasons and that many who would be perfect candidates for the loan mods are just  not applying for them, and are still walking away from their houses. 

I have a friend that bought her house in 2006 and she is underwater.  She pays her bills on time, but just owes more than what the house is worth.  She tried to get a loan mod but was denied.   So, she’s stuck and feels that even if she rents out her house, she won’t get enough to cover the mortgage.   She wasn’t a “sub prime” borrower, she just bought at the height of the market and is stuck.  I think her plan is to stay in the house, but she’s got 2 more years until her ARM adjusts, and if she cannot refinance or get a loan mod by then, she’ll be screwed.  It’s a sorry state of affairs, that’s for sure.

I know that being a Real Estate Investor, it’s tough because I have mixed emtiotions…it’s great to have more deals to choose from…and having lots of foreclosures to choose from just makes choosing deals easier.  In fact, our first home purchase was a HUD foreclosure, so I know first hand that these deals can be great.  But, when foreclosures are so rampant, it starts to hurt everyone in the neighborhood, bringing everyone’s home values down…so there needs to be a happy medium out there. 

That’s all for now.  Happy Investing!

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