Re: 80% homes… - Posted by ScottB-NC
Posted by ScottB-NC on February 24, 2002 at 14:43:00:
Apparently you didn’t read my entire post but skipped the middle of it explaining why “we” investors sometimes sell at 80%, and you instead chose to retort with your harsh reply. I said, “That way the seller gets to sell alot more houses at 80% LTV to people no money down (more buyers with no money than with money)and make more profit on volume than messing around with Owner Oc’s who are a pain in the ***.” When I buy 5 houses at 40-50% FMV and can do a rehab to get it rentable condition and I am in it for 50-60% FMV why would I putz with holding costs to find a retail buyer or screw another investor by selling at 90% where he has potentially no cashflow and needs money down, when I can blast them all out the door to investors at 80% LTV - make my 20-30% and leave them a good deal. Do you do rehab into rental deals from which to give advise? How many houses did you do last year and what was your net? If you want it to be more, give this stragtegy some serious thought. If not, don’t rain on someone esles parade just because you don’t want to come.