How do make money with reposessed VA homes? - Posted by Ken(MO)

Real Estate Investing
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Posted by Ron on December 10, 2000 at 20:59:23:

Perhaps by the time VA’s are REO’s, they are for owner occupied only, I don’t know.

But, as an investor, I’ve bought two VA’s shortly before they went back to the bank. The purchase was from the owners, not the bank.

I’ve had to qualify, but due to some really low rates, I chose to go thru the paperwork. Ugh!

Was worth it in both cases as I got a property from a motivated seller (just before the properties were forclosed) = a good deal for me + them since they don’t have the forclosure on their records.

These assumptions are not initially a zero down or even close, but they can be valuable if you want a really low rate that may exist on the property.

This is important as a low PITI can equal good cash flow for a landlord.

As far as I know, VA’s and FHA’s are always (?) PITI.

After some well planned rehab and a refi they can be a zero down (if that’s what you wnat) or just a profitable rental for many years if you keep the VA loan.

Like any purchase, always make sure you’re still getting a good deal insofar as your price vs the neighborhood and the price you can get —and how often you may have vacancies due to neighborhood conditions and other considerations. Lots to think about in these areas. Lots.

Usually, a pre-repo will have a lot of repairs that have not been handled over the term of the loan. And, when they know they are selling at zero equity, they may make some additional repairs necessary out of anger.

Just be alert and do your due diillegence, as a property report is probably not available.

Do the newer VA and FHA loans have value for us as assumptions for us as investors?

Yes. At least for me.

Hey folks, it just depends on what you’re goin’ for.

I’m sorry for the typos.

Lookin’ forward to your + & - responses.

By the way, I’ve bought and done the CS program.

It works.

Without CS I probably wouldn’t have had the limited success I’ve had.

I’ve received cash back at closing…just make sure the property can affort it. It adds to your PITI.

Good luck to you…to us all…

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How do make money with reposessed VA homes? - Posted by Ken(MO)

Posted by Ken(MO) on December 09, 2000 at 21:06:37:

There are several reposessed VA homes in my area. What are the best ways to make money with these homes? I am a veteran so I do have VA eligibility if that helps.

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Re: How do make money with reposessed VA homes? - Posted by asdf

Posted by asdf on December 11, 2000 at 16:54:52:

http://homeloans.va.gov/homes.htm for more info-Yes they do unload these props to investors.

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Re: Govt. owned homes - VA and FHA repo’s - Posted by BillW.

Posted by BillW. on December 10, 2000 at 18:37:01:

It can be hard to get a substantial discount on VA/FHA repo’s. Sometimes you do, but not always. The government is not the most motivated seller. Remember, they are not going to run out of money. They will simply take more from you, the taxpayer. Loo for motivated sellers.
Good luck… BillW.

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Re: How do make money with reposessed VA homes? - Posted by dewCO

Posted by dewCO on December 10, 2000 at 18:23:30:

VA loans are for owner occupied only. You make money on these repos the same way as any other real estate, by buying at the right price for what you want to do with it. In my market, repos, are necessarily discounted any more than any other real estate. On this creative RE site people have found it works best if your’e dealing with a MOTIVATED seller, when you buy. You get better deals that way. A repo is not necessarily a motivated seller.

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Re: How do make money with reposessed VA homes? - Posted by Mark (SDCA)

Posted by Mark (SDCA) on December 11, 2000 at 12:11:17:

Not true… VA has VERY attractive financing for NOO. 95% LTV at OO rates (8% I believe… maybe 8.5% and 2.25 points)… If you are keeping this as a rental, the financing can’t be beat.

Personally, I think the best way to make money with VA repos is buy them and wrap them.

Mark