Posted by Timo on May 18, 1999 at 14:27:42:
Actually only one is. We have a policy of not working the list we sell. We do however buy deals subscribers find. The one preforeclosure is one of these.
Timo
There are no motivated sellers - Posted by Timo
Posted by Timo on May 17, 1999 at 12:07:00:
To whom it may concern:
For the second time this year, my wife and I spent a week buying property. Last time was in February, we bought 5 houses. We have since sold 3 of them and felt it was time to get it going again. So we looked through the MLS.
We made about 9 offers last week after looking at about 30 properties. So far we have one accepted and probably will get one or two more.
We don’t buy with any fancy financing or L/O stuff, we just buy with cash. Not our cash, but we know a guy who will lend us what we need to buy and rehab as long as we keep his LTV below 70%.
We did this while housing prices have increased 18% in our town in the last year. The houses we have sold were listed for 7 days at the longest, 1 day at the shortest.
The average net we’ve made is about $17,500. So I want you to know there are no sellers out there. The competition is stiff and thick. And no one will give you a loan to buy fixers. So don’t do this business, you can’t make money at it.
Timo
Re: There are no motivated sellers - Posted by Jimbob
Posted by Jimbob on May 17, 1999 at 14:59:03:
Timo,
Thanks for the enlightening thoughts. I’m glad you have someone who will give you wheel barrows full of cash whenever you need it, if everyone was so fortunate, I doubt they would be on here asking all the questions they do.
Actually the last post I put up regarding no more motivated sellers was a bit negative towards buyers of real estate. It did generate some pretty amusing responses, some not so amusing by people who were not being told what they wanted to hear, so they decided to get nasty about it.
I know all too well, there are plenty of real estate bargains to pick up at any given time, whether the market is hot or cold. I own quite a few properties myself, and I’m not doing too badly, the reality of that artice is, this is really happening in the big cities, I live in one, so I should know.
On the other hand, if you want to scoop up properties in “Po-Dunk” Arkansas, you can buyem at rock bottom prices, and there are many to be had, but who wants to wait 20 years for the appreciation to cash in?
Jimbob
Re: There are no motivated sellers - Posted by Timo
Posted by Timo on May 17, 1999 at 16:20:13:
>> On the other hand, if you want to scoop up properties in =
“Po-Dunk” Arkansas, you can buyem at rock bottom prices, and =
there are many to be had, but who wants to wait 20 years for the =
appreciation to cash in?<<
I live in Sacramento California the 18th largest metropolitan area in the US. Many of my friends do this in San Francisco the 6th largest in the US. By the way if you live in California I can get you wheel barrows of cash too as long as the ltv is right.
Timo
PS another one accepted since the last post.
Re: There are no motivated sellers - Posted by Alex Gurevich, TX
Posted by Alex Gurevich, TX on May 18, 1999 at 08:13:52:
Out of curiousity, what price range and what kind of properties are you buying ? Low end, high end, medium ?
Re: There are no motivated sellers - Posted by Timo
Posted by Timo on May 18, 1999 at 13:52:56:
All over.
Last Five Buys and sales
Paid 115k for 180 Retail
Paid 117k for 188 Retail
Paid 68K for 100 Retail
Paid 71K for 130 Retail
Paid 150K for 340 Retail
Where I live the current median is 138K
Timo
Re: There are no motivated sellers - Posted by Alex Gurevich, TX
Posted by Alex Gurevich, TX on May 18, 1999 at 19:15:15:
If it’s not too much work, would you mind telling for how much they were listed at, how long they’ve been on the market, and how much work they needed.
What criteria were you using to identify prospects for your search and offers?
I can’t even imagine getting anything in my market in that price range for less than 15-20K under market. I do have the ability to pay cash.
Re: There are no motivated sellers - Posted by Stacy (AZ)
Posted by Stacy (AZ) on May 18, 1999 at 14:04:06:
Hi Timo-
Are these all pre-foreclosures?
By the way, thanks for the FARES recommendation. It’s a terrific service.
Stacy
Re: There are no motivated sellers - Posted by Timo
Posted by Timo on May 19, 1999 at 12:13:04:
Last Five Buys and sales
Paid 115k for 180 Retail. Bought contract for 2500 from a student who sent the defaulted owner a postcard and convinced him to sell for 112500. Did an 18k rehab. Property never listed and the owner never talked to another buyer. Did take 45 days to lockout the tenant.
Paid 117k for 188 Retail. This deal was found on the MLS during our bootcamp [we have 6 students come in the office and work with us]. The listing Realtor had the fixed up value at 150k and had listed it as-is at 130k. We made our offer. He got two offers. Took the other offer after trying to shop us with no counter. We told him we shot him the best price. 3 weeks later we signed for our offer. This was a FNMA deal. Sold for 188k with 8k in closing costs. Rehab was 15k.
Paid 68K for 100 Retail. This was a fluke. Bank had an auction of a lot of there Northern California property. They thought this was as-is. They had done the rehab. 6 days after buying we had back in escrow for 100k. The house did require another 3k in rehab because of the shoddy work done by the bank. People don’t skimp on repairs.
Paid 71K for 130 Retail. This was also bought at the same auction and did get 14k in repairs.
Paid 150K for 340 Retail. This is getting a 100k face lift as we write. It was on MLS. Saw an expire 9mos ago listed at 199. Then went back on at 169. We bought it 2 days later.
Every market has fixers and distressed property sales between 2 and 5 percent of all property for sale. Timing and tenacity are the keys.
Timo