View Full Version : I am going a little crazy...but I have options right???
OK, I am beginning to drive myself crazy. I think I told some of you but if not, I have set a goal for myself to buy my first investment property within 3 months. I am trying to narrow my searches down and thats why I am going a bit crazy. I believe the fastest and cheapest way to get a property would be through a sheriff sale since they have auctions every single month. the only problem is financing is going to be a little tricky. I am also looking at REO through tax deeds as well as banks etc. The only problem is most properties are either vacant land which is un-buildable or there aren't any properties in the area I am interested in. I have also thought about having a RE agent look for some fixer uppers but I have a hard time paying extra for something I know I CAN do myself. Finally, I have recently become interested in HUD houses, I feel like everyone is giving them a bad rap. Most of the properties I have looked at are available for investors to bid on after a certain time period and a few I am interested in are already past that time period. I actually just contacted a HUD certified broker. I know I am sort of rambling but I was approved for a mortgage and am looking in the range of 150K. I am going nuts trying to find the RIGHT property for my investment. Which way should I go???? Im lost! I need some help here guys, anyone feel like this when they were trying to find there first deal?
Okay, this is kind of funny. As I was just writing this post one of my friends sent me a text message who I have not talked to in a while. I told her my new business venture and a little about how it all works. She then went on to tell me she has a friend who owns a condo nearby and he is thinking about selling. He is planning to move away to return to school. I am not sure on the specifics yet. What type of possible deals could I do here? One more option to my list
Dan Auito
01-11-2007, 03:31 AM
It looks like you are putting to much pressure on your deadline! Slow down and don't worry about that three month mark, you'll be dealing with the property you buy a lot longer than that if you decide to hold it.
I've bought three HUD homes and everyone one of my bids was outbid but I told them to keep my offer as a backup and without fail all three offers where later excepted at my lower price when the original higher bidders failed to go through with their deal.
Usually a month or so later the HUD rep would call saying "You still want that deal?" and I would say yes but at my price not the failed contracts price and they do relent at that point rather than go through the whole process again. moral of the story= Don't be in a hurry!
Desperate buyers lose just as much money as desperate sellers.
Take your time and continually investigate potential deal after potential deal until the right one comes along, sometimes (most often) you can't force a deal to happen, you just have to keep stroking until it appears!
Jeffery (LCLA)
01-11-2007, 03:43 AM
This is not a business where you can make deadlines or mile markers. You'll end up losing in the long run. You not in the business of buying real estate, you're in the business of waiting for or making a deal. Don't set mile markers, you'll only let yourself down. I'm not saying not to make goals, but your goal should be to close DEALS not buy real estate.
you guys are right! The only reason I set my goal is so I don't get sidetracked or procrastinate. It is something I am trying to work on so that is why I set the goal. I do understand both of your points though and I will keep that in mind. Besides the goal, which direction do you think I should concentrate on? Sheriff, REO, RE agent, HUD?
Dan Auito
01-11-2007, 03:54 AM
Put your hooks in all the different ponds and wait for the right fish to bite. Investigate as much as you can wherever you can, its all good.
Remember auctions create feeding frenzies and you can pay to much, I've seen more bogus auctions where they sell at retail and then you get to pay a 10% buyers premium on top of that!
Find property for sale that knowone else knows about, Reason: no competition!
Put your hooks in all the different ponds and wait for the right fish to bite. Investigate as much as you can wherever you can, its all good.
Remember auctions create feeding frenzies and you can pay to much, I've seen more bogus auctions where they sell at retail and then you get to pay a 10% buyers premium on top of that!
Find property for sale that knowone else knows about, Reason: no competition!
sounds good! The only problem is I am the person that doesn't know about it! I believe your right about the auctions, they seem very tempting but also have the most risk I believe.
Randy (SELA)
01-11-2007, 06:31 PM
You can't buy anything without funds, not even fish hooks.
Randy (SELA)
01-11-2007, 06:32 PM
Correction: Funds or excellent credit
Randy (SELA)
01-11-2007, 06:35 PM
I've bought three HUD homes and everyone one of my bids was outbid but I told them to keep my offer as a backup and without fail all three offers where later excepted at my lower price when the original higher bidders failed to go through with their deal.
Usually a month or so later the HUD rep would call saying "You still want that deal?" and I would say yes but at my price not the failed contracts price and they do relent at that point rather than go through the whole process again. moral of the story= Don't be in a hurry!
Dan,
Were those offers made to the Real Estate agent, or directly to HUD? I've been thinking about making some low ball offers on a few HUD homes listed on the MLS.
Dan,
Let's say a HUD house is listed at 145K and it has not sold for a while (about 6 months) what do you think would be a good offer? I don't want to go too low but on the other hand I don't want to pay too much. I understand that HUD's "modo" is to sell at FMV w/ any damages being considered. So how did you determine what the price was.
Randy,
I know in PA you need to have a certified HUD broker to make an offer.
SPIVALAW
01-12-2007, 12:10 AM
Only buy great deals.
Love and great investments show up when least expected.
Great investments last longer :>)
OK OK! Making some progress today! I have found a potential deal through HUD, I was seeking a certified HUD realtor and I noticed there were not many in my area. So I called my friend who is a realtor and he is in the process of being certified, they issued him a temporary certification. We are planning on taking a look at it on sunday morning. And on top of it they reduced the price by $15,500 today. Only problem is I have to wait about a week until it opens back up to investors. WISH ME LUCK!:SM106:
well we have visited and inspected two properties which we believe both have a lot of potential. Our plan initially was to do all rehabbing ourselves w/ some help here and there. Only problem is I received a call back from a sales job I had interviewed for, seems like they are going to offer me the job which is awsome! Only problem is that it involves a lot of traveling and hours fluctuate. This may make it hard to schedule times to get our work done on rehabbing... let the craziness begin:SM118:
ThreeRiversREI
01-17-2007, 04:56 AM
well we have visited and inspected two properties which we believe both have a lot of potential. Our plan initially was to do all rehabbing ourselves w/ some help here and there. Only problem is I received a call back from a sales job I had interviewed for, seems like they are going to offer me the job which is awsome! Only problem is that it involves a lot of traveling and hours fluctuate. This may make it hard to schedule times to get our work done on rehabbing... let the craziness begin:SM118:
Repeat after BrianB_Cereniti (http://www.magicbullets.com/forum/showthread.php?t=2624), "Contract out the repairs. Contract out the repairs. Contract out the repairs." :SM058:
thepower
01-18-2007, 02:55 PM
Air,
What are your goals for these houses, rehab & rent? or Rehab & sell?
We are planning to rehab&sell for our first investment. We went and looked at both properties again this morning and we are leaning towards the cheaper of the two; better location and more potential although it needs more work. We will be making a bid on the 22nd. We will most likely bid on both and just lowball the other one.
yeah im going crazy again! two denied bids...unexpected expenses jumping up!!!! rrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrr rrrr
Jim FL
06-08-2007, 03:26 AM
Air,
I noticed this post, and the fact that the thread was rather dead for a few weeks/months there.
So, I re-read it, again.
I am wondering, what you are doing to seek out deals now?
Bidding on listed houses? Hud and REO's?
If so, sure, this might get a deal, and in the beginning, if you make 100 low ball offers, chances are, 1 or 2 of them will hit.
I don't like those odds.
So, my advice is to quit looking for houses, and instead, look for situations, and people.
You said you have financing in place, ready to go, right?
If that's the case, why not just locate a local wholesaler with a good deal, and buy it?
While doing that, market some, not sure if you are.
Get the word out that you buy houses, like most of the rest of us do.
The activity alone from wholesalers sending you properties to look at, and calls coming in from marketing will prevent you from 'going crazy'.
Anyway, my two cents, keep the change,
Jim FL
Randy (SELA)
06-08-2007, 06:12 PM
I know if there were deals like this in my area I'd be all over them like Dan on an ebook:
http://www.carlasellspahomes.com/listings.php
Air,
I noticed this post, and the fact that the thread was rather dead for a few weeks/months there.
So, I re-read it, again.
I am wondering, what you are doing to seek out deals now? I am mainly focusing on HUD's and REO's
Bidding on listed houses? Hud and REO's? I am also looking at listed homes and beginning to investigate some FSBO's
If so, sure, this might get a deal, and in the beginning, if you make 100 low ball offers, chances are, 1 or 2 of them will hit.
I don't like those odds. Never really thought of it that way
So, my advice is to quit looking for houses, and instead, look for situations, and people.
You said you have financing in place, ready to go, right?
If that's the case, why not just locate a local wholesaler with a good deal, and buy it? How do I do this???? Where do I find wholesalers?
While doing that, market some, not sure if you are.
Get the word out that you buy houses, like most of the rest of us do.
How would you recommend I do this? I keep talking about advertising and I do a little here and there send pre-foreclosure letters , etc. I need to stop talking about it and just do it but I am not sure what the best route is
The activity alone from wholesalers sending you properties to look at, and calls coming in from marketing will prevent you from 'going crazy'.
Anyway, my two cents, keep the change,
Jim FL
Jim, thank you for taking the time to respond and I am very interested in networking with some wholesalers as well as starting some advertising
I know if there were deals like this in my area I'd be all over them like Dan on an ebook:
http://www.carlasellspahomes.com/listings.php
Thanks for the link but these properties are a little far for my first rental. I would like to get a little more accustomed to land lording before I venture out too far
Burke
06-10-2007, 07:18 PM
Air,
I believe there are some folks from Philly (I know there are some from PA for sure) over on Steve Cook's forum at reiplace.com. I would post a message over there that you are looking to network with other investors in your area and see what kind of response you get.
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