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Posts Tagged ‘REOs’

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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Remember the house that we were waiting forever for the Title V (septic) inspection (the same house that the bank’s listing Agent was “insulted” by our low-ball offer)?  Well, we told our Agent that even though they lowered the price to $159k, we were not going to increase our offer by an amount that the bank would accept, so this won’t be a deal.  Interestingly, I noticed today that the listing is now inactive, so I’m curious what the offer turned out to be.

We also looked at a couple more REOs this week.  One was pretty lousy and we’re not intersted.  Another house was a 3 family where 2 of the units were in good shape but the top floor needed a full rehab.  The first 2 floors were basically move-in and the rents there would more than cover the property.  Rehabbing and renting the top floor would be pure gravy, as cash flow goes.  The listing of this house had special stipulations that they were taking offers from owner occupants or municipalities (for Section 8, I suppose?), then after a couple weeks, they would consider investor offers.  The house is listed for $90k, which is a great deal for a 3 family. We’re hoping that we can make an offer on this one.

With the news of Bank of America suspending foreclosures, I think we may need to alter our plans for getting leads bit, since we look at a ton of REOs.  We are going to mail out the rest of our inherited list mailers and will be buying a new list soon.  I decided to buy a new list with more focus of certain zip codes instead of the entire county.  The “whole county” approach didn’t work well since some parts of the county are 45 minutes or more away and the areas are really out of our target farm areas.  I also have realized, though, that I don’t like talking to sellers all that much.  I think I’m good at it, and I should be since I have tons of years of customer service experience, but I just don’t like it. I much prefer vacant/REOs, but there’s a lot of competition for those.  Plus, fielding motivated seller calls during calls during business hours is not possible and my calls go to voicemail.  Maybe I can outsource the call backs or something.  We also don’t do bandit signs.  I know they’re effective but we really don’t have the time or energy to so it…and we also don’t have the time or energy to get slapped with fees, either.  The signs get pulled down pretty fast around here. 

I’ve noticed that the hours/days/weeks slip away and I don’t have enough time to do all that I need to do for REI.  Even with my husband helping out, there are some things I cannot outsource to him, and some things that are more more my specialty (like number crunching the deals).  Thank goodness he’s been a contractor and is still a licensed plumber, so those are the skills I really need from him! 🙂   So, anyway, I think I gotta start using a virtual assitant or two to help us out.  For those of you that are outsourcing things or using virtual assistants, which companies do you recommend (elance.com, odesk.com or others)?  Because I deal with outsourcing at my 9-to-5, I have some very hands-on experience here (and I have some very strong opinions on the topic!), but I’d like some guidance here for REI businesses. 

Oh, and since none of our offers got accepted, I didn’t meet Steph’s 30 day challenge to get a house under contract in September.  Can I get a do-over on the do-over? 🙂

Unfortunately, I have to work Columbus Day (boo!), but to those of you that are not, happy rest of the long weekend! 🙂

Happy Investing!  Happy 10/10/10!

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Photo of Bank of America ATM Machine by Brian ...

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I’m sure you heard, but if not, here’s today’s big news: Bank of America suspended foreclosures in all 50 states!

What does this mean to you and your REI business?  What about those of you doing short sales?

BTW, did you hear about the new Flip VIPs  program?  Finally an affordable mentoring/coaching program for Real Estate Investors!  It sounds awesome.  I might need to take the plunge!

Happy Investing (or maybe not?)!

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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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Hi There!

We’re still chugging along looking for rehab and wholesaling deals.  We looked at a few more REOs this week.  One house was a great find – just listed colonial, built in 1990 (yeah! no lead issues), that needs a complete cosmetic rehab.  A few other minor things like some missing copper need to be fixed.  The house is solid, good bones.  It’s in a great, highly desirable town (where my husband grew up) so we know the area really well.  The only downside is the house is on a busier street and no garage, but I think we could rehab and price accordingly.  I went by myself to see it so my husband is coming with me again to see it today.

One of the other properties was in an awesome neighborhood – quiet street, beautiful lawns, older homes (built in 1950s/1960s), but it was such a great area, typical “pride of ownership” shows here!   It’s the proverbial “worst house in a great neighborhood.”  The house was fully gutted inside and we knew the reason why the minute we stepped inside…it reeked of cat pee.  The smell was unreal.  The house had been sprayed with a white substance (I assume some type of odor killer) and everything had been ripped out (kitchen, most of the floors, etc.).  The cats must have urinated everywhere (although the basement and 2nd floor didn’t smell as bad as the 1st floor).    I cannot imagine what it smelled like before a lot of stuff got ripped out.  The house was built in 1950, and beyond the complete gut, needs new windows, new exterior paint (or siding), etc.    My husband actually liked this house…it’s way overpriced,  but if we could get it dirt cheap (which is possible) it’d be a great deal.  I’m just worried we couldn’t get rid of the smell.  What do you guys think?  If we rip out the sub-floor, and again use odor remover stuff (like Kilz), can you get the smell out?

BTW, I had a gut (no pun intended) feeling about the cat pee house, so I Googled the address.  Turns out, the house made the local paper because almost 50 cats were removed from the house at the time of foreclosure.  One of the neighbors in the article mentioned you could smell the odor across the street.  How happy do you think the neighbors would be if we rehabbed that house??

Also, we’re still getting calls from our direct mail campaign, and we still haven’t mailed all the letters.  This week I got a call from an attorney (property is listed already), one from a Realtor (property is listed already), one from the owner’s son (property is listed already – overpriced) and one last call from another investor.  He must have it under contract, but didn’t say that in his voicemail…I called him back yesterday (after I Googled his phone number) and mentioned I noticed he also buys houses.  I’m waiting for him to call me back to see what he’d want to sell it to me for.  It’s a butt-ugly house (from the outside) that he said hasn’t been updated in 40 years (we haven’t seen the inside).  We may have a deal if he can sell it to us cheap enough.

Happy Investing!

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I read this hilarious article over at TampaSteph’s blog about a recent situation she had with one of her wholesale investor buyers.  It’s a quite a laugh and she’s a great storyteller.

Check it out here.

Happy Investing!

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