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Posts Tagged ‘REO’

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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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 got an email today regarding a 1/2 price sale  on the Private Money Blueprint course from Patrick Riddle and Trevor Mauch.  I read the sales page and decided to bite the bullet and purchase the course.  It was an offer I couldn’t refuse! 🙂  Part of the reason,  besides the price, that I purchased it was because when submitting our REO offers lately, we seem to be getting some issues from banks about our pre-approval letters.  I’m hoping that if we have some private lenders set up, it may make the offer process a bit easier (like making all CASH offers).  I know many people are already PMBP members,  so I’d love your feedback on the program, if you wish to comment.  Oh, and one of the reasons they were holding a sale is because Trevor and his wife had a brand new baby girl – so congratulations to them!  I’m a sucker for a cute baby story!

Also, just a quick update on our latest REO offer.  We’ll, it’s still in limbo.  Partly because they’re doing a Title V (septic) inspection on the property. Once we get the details on that, we will adjust our offer accordingly.  Also, it’s pending because we offered way low (like 80k under asking), based on our estimated repairs.  The house has been on the market over a year.  The bank’s Agent told our Agent that the bank wouldn’t consider our offer and that we should make a “reasonable” offer.  Really?  You’ve been sitting on this house more than a year…isn’t any offer at this point reasonable?  He gave our Agent this song and dance about the bank needs to satisfy their stockholders and such.  Also, he told her that we were just wasting her time and that because we had a pre-approval from a hard money lender, that these types of buyers “never work out.”  What a jerk.  I am sure he’s been burned by other investors before but come on…he doesn’t know me or my husband or what our situation is. He doesn’t know that we’ve done a couple rehabs in the past (our own residences), that my husband has been a contractor, etc.  He can go pound sand, as my dad used to say!  So, who knows if that deal will work out either.

I’m still getting some nibbles from our inherited property mailing, too. The guy I mentioned last time basically wanted retail price, so I told him he’s best to re-list the house with the new Agent.  Another guy called me from out of state, so if he’s the sole owner of a house he inherited here in New England, maybe that’d be a deal.  I also got a lead (via Craigslist) from a landlord on a rental property in town that’s in excellent condition.  He’s asking more than what it’s worth (in my opinion), but I still need to research more. Maybe he’ll do owner financing, who knows?

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

Image by madmolecule via Flickr

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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