Posted by Mark D. on January 20, 2001 at 17:25:55:
First thank you for your input. I failed to mention that the bank has completed the forclosure or I guess I just worded it wrong. The R.E.O. officer told me that she could not sell the house until it was vacant. As far as the repair costs are concerned I went to Lowes and got prices on all materials and also had a contracter to give me an estimate. Of course I used the high end on all estimates because this is what I learned in CS course. And I used his software (Computer Toolkit) in all calculations to arrive at an offer/offers to fax in. I also used the creative options grid to see what were the best options for all situations ie:Buyer,Seller,Property. Thanks again for your input. I hope this helped you to understand my post better. Keep’em coming guys! MW
Posted by Mark D. on January 20, 2001 at 14:17:03:
Great Site! Just wanted to introduce myself and maybe ask some ?'s I have CS program and have studied it completely through. I have gotten some credit est. in the form of two credit cards. I have set up an office at a relatives commercial property also have a computer,fax, printer etc.I also purchased CS computer software which is helpful as well. The very first house I called on turned out to be in forclosure. I first called in July. I have already made a letter of intent offer to the bank R.E.O. dept.which includes two different offers. The occupant had a two year old appraisal valued at 55,000 she also had a copy of a survey that shows the lot #'s and streets. This property has an extra lot on which it sits in the middle of both. The occupant said.(She and her husband built the house) The house is in need of a rehab. I have done a detailed property rehab analysis using CS course which I included in the offers. The amount I came to includes everything it would need to put the house in EXTREMELY NICE condition. The amount for the rehab comes to 23,285.50. The amount for Rehab period costs is 10,137.44. The amount for the first offer/mortgage is 26,425.13. >> 19,560.00 at 3.328% for 35 yrs purchased on a contract for deed w/a pledged asset for 5% down in the form of a bank C.D. w/ legal title to pass in 60 days closing in 15 days. AS-IS<< Bringing the total amount invested to 59,848.07. I’m basing my market analysis on the appraisal she had plus talking to a neighbor that was very helpful he bought his house a year ago for 59K. there is also about 4 houses being rehabbed in the same neighborhood. I’m Figuring the house is worth 60K to 65K fixed up. The offers I made were supposed to embarrass me so I think I did it right. I figure I can put 5K to 7K in the house and if I get it at the offer above I stand to make 15 to 20K. Although I don’t expect the bank to accept either of the offers. The lady says she expects to be out at the end of the month. She has already been to court but can’t remember exactly what went on as far as when she is supposed to be out. I have the case #. Would someone please tell me if I would call civil court on this case or another court to find out when exactly shes supposed to be out. The R.E.O. officer said when she is out that she would be getting an appraisal and sending my offers to committe. And would try to have me an answer asap. If anyone has experience with R.E.O.'s any input on my offer or otherwise would be greatly appreciated. Also I noticed Bronchick,Keiser,and Legrand are well reccomended here. I also noticed there are several programs available. I am need of cash at this time would anyone recommend trying scouting or being a dealer for a while to build up some cash as bronchick mentions on his intro page Flipping Properties? And if so is the info I have learned in CS course enough to do this? I guess I could do that part time and still try to make offers as well. I would really appreciate any input from someone who would be interested in helping me, I would also consider paying a fee (within reasonable amounts and terms) to someone that would be willing to help me get this deal done and MAKE SOME $$$. Please E-Mail me at (MwilsonInvestor@home.com) if you are interested please respond ASAP time is of the essence. Once again GREAT SITE! Lots of smart people here. I have already bookmarked it! And Thanks Ahead Of Time To All That Post/Respond. MW
Posted by Ed Copp (OH) on January 20, 2001 at 14:43:56:
that I see in your post is this. If the property is in forclosure, as you say that it is I must conclude that the bank has not yet completed the forclosure. Therefore the bank does not own the property (yet).
The people that you are calling the occupants, are still the owners if the property has not yet been forclosed. You would need to buy it from them.
The rest of your post should just be deleted. It is obvious that you need more education on the subject, and this is the right place to start.
You indicate that you are in need of cash right now, but you are going to offer a bank (who is not the owner) a chance to loan you some money at 3+% for 35 years. GOOD LUCK on this one. You are able to figure out an unrealistic amount of interest to the one thousandth of a percent, but you cannot come within $5,000 on the after repair value.
You appear to be able to estimate repair costs to the penny. This is unrealistic, and impossible. You mention an appraisal that is two years old. This is of no value to you, because things change. You mention that there are four other houses being rehabbed in the neighborhood, how come? Perhaps the neighborhood is in decline. You need recent sales comparables to make a good judgement on value (sales, not appraisals within the last 90 days). Also if you wnat to buy property you need to deal with the owner, not the lender.
Other than that you are doing fine, just keep reading and study dilligintly.