Re: Sweet Deal!!! - Posted by Jonathan Mednick
Posted by Jonathan Mednick on October 28, 2003 at 05:16:02:
Let’s say that you are looking at a property and they are in foreclosure. They need help and want to get out. They might consider selling.
I access REAP and look at the mortgage history of the house. It shows me all the past owners and the current owners mortgages, if they have any seconds, thirds, how much they paid, how much their mortgages are, I can access their tax records, it shows me if there are liens, and I can look at comps. Basically, I get the detailed picture. I know how much they are into the property for and how much I am willing to buy it based on the comps.
So, if I see that the property is worth $150K and they owe $110K. I will offer them about $120K. The theory goes that you want to put something in their pocket. However, if they have no equity in the property, I explain to them the short sale. Not a lot of investors in my area do it because it takes time and they don’t want to learn. They pass on those deals but I never do.
Many times when I meet with a homeowner, I already know their history. When they ask me how much I am willing to buy their house for, I can tell them right there and negotiate instead of telling them I will call them back.
REAP gives gives you all the tools to know the history of the property so when you do get in the door, you already know what you are willing to pay, what technique you are going to use and what your exit strategy is.