My buddy who owned a mortgage company recently told me he was now moving into reverse mortgages. It kinda seems shady as they are focusing on an older client base? What’s your take?
Today’s ultra low market prices make lease options attractive to many. A simple search of Craigs List shows many properties in the Bay Area being offered with this option. Is this a good thing to do in today’s market?
On the plus side, a lease option allows buyers to lock in today’s low rates with a seller while building a down payment through paying extra each month towards it. If you believe the market will go back up, this allows you to take advantage of the prices now. It also buys time to build credit and save for the rest of your downpayment, so can be great for first time buyers or those who were hurt in the downturn.
On the minus side, lease options are “gambling” that the market will, indeed, go back up. If the market goes down, your price is still your price. If you don’t exercise your option to buy, then you forfeit all the extra money you have paid to the seller for the lease option. This also holds true if you don’t qualify for a loan in the amount of time agreed upon when you sign the lease option. This means that it is to your advantage to give yourself as much time as possible!
Some lease options require you to put money down upfront for the priviledge of locking in the price. It pays to do your homework, and retain a good real estate attorney, before entering into any binding agreements with the seller.
I thought all liens were wiped out except for tax liens when you buy a property at a foreclosure auction?
Also, what are some other things to look out for at these auctions besides the redemption period and what you could find in a preliminary title report?
My personal opinion is that you are now in the softest, easiest side of the business. You can used licensed subs each step of the way, pull permits and build everything according to code…and still make $50K to $70K per house? Wow!
You may find a few rehabs that will feed you, but there will be very few.
Most rehabs cannot afford licensed contractors and use Jack-of-all-trade guys to do much of the work. It is almost impossible to get firm quotes on rehab work. The story “It all depends what I find underneath” precludes firm quotes.
Then, you end up depending on peiple usually paid houly wages, and a boss needs to be on the job or close by to be the decision maker. How far do we go? What do we fix and what do we cover up?
I’d suggest buying a property that needs rehab and trying your hand at it. It may be a lot more complex and require more of your personal participation than you are wiiling and able to give. Then again, you may like it!
I’ve been looking through the MLS recently (off of a website, this is a public one) and am searching through by building. I’d like to start wholesaling apartment units because I am familiar in that market. By looking at the recent sold property I can figure out how much they would go for.
I want to offer 60-70% FMV value for these properties. Do I just talk to the realtor and say I want it for a discount? If the deal is good I can surely get funding, and close quickly. I know I’ll get laughed out and booted out the door, but it’s a numbers game right? Somebody must want to get rid of their place ASAP.
Trying to cover all the bases. It seems like getting the deal would be the hardest part. If you can get these deals then it sounds like you can “flip” it for FMV, or a bit below, and earn the equity spread.
Here’s how I found seven (7) new real estate investors who will pay me cash to buy my position in escrow. I found a local chapter of “National Association Of Remodeling Contractors” and called a couple dozen names on the membership roster. I told each one:
I’m a real estate investor who buys, renovates, and sells single family houses. My lot in life is searching out properties that are candidates for renovation. I often find more properties than I can handle.
In the past, when my plate was full, I’d make note of properties that I couldn’t handle at the time, in hopes of getting back to the owner at a later date.
Now, if I find a property that looks like a profitable deal, I put it in escrow, do my due diligence, and sell my position to you, the contractor/investor. There will always be sufficient profit for you on the back end.
They come like moths to a flame! One contractor even told me, “This is the phone call I’ve been waiting for.”
It seems that most other real estate practitioners have ignored this segment of the buyer market. I’m not greedy, I take a couple thousand and leave the lion’s share of profit for the investor. It’s worked very well for me.
Despite the collapse in the real estate market for new housing starts and the bursted bubble in so many of America’s largest real estate market not all real estate has slowed to bargain basement prices. In fact in many now built up suburban neighborhoods, raw land for commercial development are still at a premium. This is a very interest situation considering the downtown commercial real estate markets, office parks and residential markets, which are so typical of down markets in post bubble periods.
How can you find good deals on raw land? Well it is easy if you are not so particular to where it is and you are only buying for speculation. Most cities grow North and West so that is a good bet, especially if the areas are growing towards a lake, river, mountain, ocean or Indian Land.
Why? Well, because as the growth continues it will squeeze heavily on the remaining areas left as the land becomes more and more scarce. Thus if you have such a piece of property, well it may just be the nest egg you need and you can wait to sell out to the highest bidder in the future.
Is it difficult to spot such prime real estate land to speculate in? No, not really, but it takes a little patience, review of the local master plan for the area and a little insider knowledge as well. But all in all you can generally sense the growth in an area by watching it for a few years, but do not wait too long, as the goal is to buy low, hold and sell very high.
I need tips to sell my house by myself. The same house in my neighorhood just sold for 230K with a realtor and another sold for 225K. I am a teacher so I have the whole summer to sell it. I have put an ad in the paper for 220K and have had no showings. I live in Las Vegas where houses have been typically selling in a few hours with multiple bids and for over the asking price. How do I get showings? Did I not price the property correctly? What other strategies do I need to use? I would really appreciate any help you can give me.
8 posts found
dolsonk writes, Oct 30, 2008: (8 posts)
(Topic: Introductions & General Chat / Reverse mortgage, what's you take?)
My buddy who owned a mortgage company recently told me he was now moving into reverse mortgages. It kinda seems shady as they are focusing on an older client base? What’s your take?
dolsonk writes, Oct 11, 2007: (8 posts)
(Topic: Other Stuff! / The Pros and Cons of a Lease Option to Buy)
Today’s ultra low market prices make lease options attractive to many. A simple search of Craigs List shows many properties in the Bay Area being offered with this option. Is this a good thing to do in today’s market?
On the plus side, a lease option allows buyers to lock in today’s low rates with a seller while building a down payment through paying extra each month towards it. If you believe the market will go back up, this allows you to take advantage of the prices now. It also buys time to build credit and save for the rest of your downpayment, so can be great for first time buyers or those who were hurt in the downturn.
On the minus side, lease options are “gambling” that the market will, indeed, go back up. If the market goes down, your price is still your price. If you don’t exercise your option to buy, then you forfeit all the extra money you have paid to the seller for the lease option. This also holds true if you don’t qualify for a loan in the amount of time agreed upon when you sign the lease option. This means that it is to your advantage to give yourself as much time as possible!
Some lease options require you to put money down upfront for the priviledge of locking in the price. It pays to do your homework, and retain a good real estate attorney, before entering into any binding agreements with the seller.
dolsonk writes, Jun 12, 2007: (8 posts)
(Topic: Foreclosures and Pre-Foreclosures / Foreclosure Auctions)
I thought all liens were wiped out except for tax liens when you buy a property at a foreclosure auction?
Also, what are some other things to look out for at these auctions besides the redemption period and what you could find in a preliminary title report?
dolsonk writes, Jun 12, 2007: (8 posts)
(Topic: Rehabbing through Construction / Builder Wonders: Is There Better Money In Rehabing Or Building New?)
My personal opinion is that you are now in the softest, easiest side of the business. You can used licensed subs each step of the way, pull permits and build everything according to code…and still make $50K to $70K per house? Wow!
You may find a few rehabs that will feed you, but there will be very few.
Most rehabs cannot afford licensed contractors and use Jack-of-all-trade guys to do much of the work. It is almost impossible to get firm quotes on rehab work. The story “It all depends what I find underneath” precludes firm quotes.
Then, you end up depending on peiple usually paid houly wages, and a boss needs to be on the job or close by to be the decision maker. How far do we go? What do we fix and what do we cover up?
I’d suggest buying a property that needs rehab and trying your hand at it. It may be a lot more complex and require more of your personal participation than you are wiiling and able to give. Then again, you may like it!
Just my $.02.
dolsonk writes, Jun 12, 2007: (8 posts)
(Topic: Wholesaling / Properties On MLS)
I’ve been looking through the MLS recently (off of a website, this is a public one) and am searching through by building. I’d like to start wholesaling apartment units because I am familiar in that market. By looking at the recent sold property I can figure out how much they would go for.
I want to offer 60-70% FMV value for these properties. Do I just talk to the realtor and say I want it for a discount? If the deal is good I can surely get funding, and close quickly. I know I’ll get laughed out and booted out the door, but it’s a numbers game right? Somebody must want to get rid of their place ASAP.
Trying to cover all the bases. It seems like getting the deal would be the hardest part. If you can get these deals then it sounds like you can “flip” it for FMV, or a bit below, and earn the equity spread.
Thank you for any answers.
dolsonk writes, May 16, 2007: (8 posts)
(Topic: Other Stuff! / Where to Find Buyers for Your Deals)
Here’s how I found seven (7) new real estate investors who will pay me cash to buy my position in escrow. I found a local chapter of “National Association Of Remodeling Contractors” and called a couple dozen names on the membership roster. I told each one:
They come like moths to a flame! One contractor even told me, “This is the phone call I’ve been waiting for.”
It seems that most other real estate practitioners have ignored this segment of the buyer market. I’m not greedy, I take a couple thousand and leave the lion’s share of profit for the investor. It’s worked very well for me.
dolsonk writes, May 16, 2007: (8 posts)
(Topic: Beginners or Bird Dog / Advice for beginners - Quick Flipping Raw Land)
Despite the collapse in the real estate market for new housing starts and the bursted bubble in so many of America’s largest real estate market not all real estate has slowed to bargain basement prices. In fact in many now built up suburban neighborhoods, raw land for commercial development are still at a premium. This is a very interest situation considering the downtown commercial real estate markets, office parks and residential markets, which are so typical of down markets in post bubble periods.
How can you find good deals on raw land? Well it is easy if you are not so particular to where it is and you are only buying for speculation. Most cities grow North and West so that is a good bet, especially if the areas are growing towards a lake, river, mountain, ocean or Indian Land.
Why? Well, because as the growth continues it will squeeze heavily on the remaining areas left as the land becomes more and more scarce. Thus if you have such a piece of property, well it may just be the nest egg you need and you can wait to sell out to the highest bidder in the future.
Is it difficult to spot such prime real estate land to speculate in? No, not really, but it takes a little patience, review of the local master plan for the area and a little insider knowledge as well. But all in all you can generally sense the growth in an area by watching it for a few years, but do not wait too long, as the goal is to buy low, hold and sell very high.
dolsonk writes, Apr 23, 2007: (8 posts)
(Topic: Selling Talk / For Sale by Owner Tips?)
I need tips to sell my house by myself. The same house in my neighorhood just sold for 230K with a realtor and another sold for 225K. I am a teacher so I have the whole summer to sell it. I have put an ad in the paper for 220K and have had no showings. I live in Las Vegas where houses have been typically selling in a few hours with multiple bids and for over the asking price. How do I get showings? Did I not price the property correctly? What other strategies do I need to use? I would really appreciate any help you can give me.