Ok, I got another one..

[FL Beachgirl]

And I'm kind of feeling like a total idiot because I am at a loss as to what to do next with it LOL.
Here's the scoop: Got a deal referral from a friend (who is living in the house with his girlfriend) Was too busy dealing with my other 2 to do anything with it at the time (because I had 2 other deals in the works that managed to fall through) so I passed it on to my investor friend with the "just throw me a bone when you close" intention. Property needed to be short saled, doesn't need a ton of rehab, loan wasn't yet in default...I honestly didn't think it was going to produce. Well, I get a call from my investor friend Friday saying "Short sale went through, I don't want to own property in that area it's too far for me to handle...do you want it back?" Numbers are basically, 185k arv, 6k rehab, short sale accepted at 120k and 1k referral fee to the original referral. Of COURSE I want it back...she tells me throw her a bone when it closes (1k or so she wants for working the SS for me)
So this is what's bugging me: I don't have 128k to toss into this property, I don't know any PM lenders really, all the paperwork is in my investor friends name and I'm drawing a blank as to how to straighten it out. I am used to the Sub2 way of aquiring property, I don't want to goof up deed seasoning be outright buying and recording (yes the numbers are ok for PM or HM lenders) and I am not interested in being a landlord...well, I'm not sure how anyway.

If yall were me, what would you do with it? This should be easy but I swear I am just hitting a brick wall when I try to work it out in my head.

Anyone with experience and advice wanna lend me some money and a few words? That might be a good help.

Jennifer

[SoldierInvestor]

I to would be interested to see the remarks on this post.

[FL Beachgirl]

Well, I think I have it all figured out....I hope so anyway.
I contacted a few people I know this weekend asking for ideas and this is what I have come up with so far:
Being in the "rehab" buiness I know quite a few people who need a place to stay, paying for that place by the week is not a big deal to them and neither is sharing a house with other adults. None of these guys are "crack heads" One is fresh from New York with no family down here and tired of paying for a seedy motel to stay in while he works and saves money. Another is a 19 year old young man who has been busting his behind for me for the last 6 weeks still living with his mother who just informed him she and her husband are going to be divorcing soon and selling the house (yes that's a possible deal in the making, I'm not going there yet LOL) So, what that leaves me with is 2 guys willing to give me $125.00 per week for two of the bedrooms in the house and the other one already occupied by the person that referred me the deal to begin with and his girlfriend.
I intend to private money finance the payoff for the short sale, let that ride for 6 months or so then conventional finance out of the private money after my other property sells so I can afford the small amount of rehab it needs on my own. THEN I am gonna hold it for about a year renting out the rooms individualy, save as much of the money as I can that doesn't go toward paying the mortgage so I can give it a quick paint and carpet and then sell it after deed seasoning (maybe even on a lease option)is no longer a problem (and maybe even the market makes a little bit of recovery)

What do you guys think? Does it sound like an ok plan? For some reason because I know the people renting from me before they rent this doesn't sound like a scary thing to do. If I had to stick an ad in the paper and worry about getting strangers in my house I would be probably intimidated out of it.

Jennifer

[SPIVALAW]

Maybe your area has a future for investing in single family houses???

According to the Shimberg Center for Affordable Housing, the southwest Volusia County area has a population of approximately 105,000 and a projected increase to approximately 150,000 by the year 2010.

[FL Beachgirl]

Spose I should stick an update in here for this property.
At this time I have "lost" the deal.
I ran some comps for the area and feel that it is firmly a 185k house...ARV.
We made an offer to the bank of 125k, justifying all the rehab and the difference between market and apprasied value including pictures and market analysis...and they shot us down so fast it wasn't even funny.
They came back with 168k was the lowest they would accept (well ain't that funny, it's financed at 172k LOL...bastards)
However, the foreclosure has just recently been filed, so I have a couple months to let them stew on it and resubmit another offer before I run out of time. All I can do right now is wait it out and see what happens in a couple months...and hopefully by then I will have my sh*t together on my other two properties and in a better financial position to do the rehab on it that it needs.

Jennifer

[Invstr73]

They came back with 168k was the lowest they would accept (well ain't that funny, it's financed at 172k LOL...bastards)

Did they order and interior BPO?

[FL Beachgirl]

Did they order and interior BPO?


yes, but apparently he didn't see the shower wall falling down or the window in the living room that is seperated 2" out of the frame, or the roof that doesn't have a drip edge because the guy that installed it was a moron or the mold on the bottoms of the living room floor (dunno why that's there needed to further investigate) OR the rat crap in the garage. And the list goes on LOL.

This isn't the first time I have had a BPO done where the appraiser has ignored some pretty costly problems and just turned in an ARV appraisal. It's very frustrating when you have a distressed house that needs attention and the bank is only willing to give you a few thousand dollar break because the guy they sent to take pictures didn't turn in the ones needed.

Like I said though, I'll go back to them in a few months...I already have a notice of contract recorded and the deed...all I need is an accurate pay off from the bank to proceed.....and full price won't cut it.

If i happen to lose the deal all the way there will be more and frankly I'm in enough hot water right now as it is LOL.

Jennifer

[Invstr73]

yes, but apparently he didn't see the shower wall falling down or the window in the living room that is seperated 2" out of the frame, or the roof that doesn't have a drip edge because the guy that installed it was a moron or the mold on the bottoms of the living room floor (dunno why that's there needed to further investigate) OR the rat crap in the garage. And the list goes on LOL.

This isn't the first time I have had a BPO done where the appraiser has ignored some pretty costly problems and just turned in an ARV appraisal. It's very frustrating when you have a distressed house that needs attention and the bank is only willing to give you a few thousand dollar break because the guy they sent to take pictures didn't turn in the ones needed.

Like I said though, I'll go back to them in a few months...I already have a notice of contract recorded and the deed...all I need is an accurate pay off from the bank to proceed.....and full price won't cut it.

If i happen to lose the deal all the way there will be more and frankly I'm in enough hot water right now as it is LOL.

Jennifer


Were you there to meet the BPO agent Jennifer? I would take my own color photos and mail them overnight to the mitigator. If they missed so many things request them to re-do the BPO.

I understand you want to sit and wait but you already know they will take their good sweet time getting back to you with an approval if they come off that number.

Right now with a 172k loan balance and them seeking 168k net, they are off their rockers! That's 98% of the Mtg balance. That IS NOT a short sale! Tell them you can go down the street and buy houses that are BRAND new construction in that price range with none of this hubub.

[TommyOH]

What happened to the 120k Short that your friend had "accepted"?

[FL Beachgirl]

What happened to the 120k Short that your friend had "accepted"?


it was only a verbal approval and they came back two days later with "that's not enough, we want 168k"

[KCHomebuyers]

Unfortunately, the banks are still being very stingy with the short sales. I think the problem is that the investors that threw their money into the loans are trying to stop the bleeding, and at the same time trying to recover every penny they can get.

It almost doesn't matter how bad the house needs repairing, if they have a drive by appraisal that'll support what they want, they'll ask for it.

On a more positive note, we're closing on two shorts next week. One deal has Homecomings as the first at a payoff of about 109K, and HSBC on the second with a payoff of 26K. Homecomings is taking 102 (after all, they're the first and have nothing to lose at 80% LTV) and HSBC is taking a whopping 2,700 to release. :smiley1:

The second deal is America Servicing (Wells Fargo). The house appraises at 255 and they're taking 190. This is a good one because my brother is actually buying it after selling his current house. In 6 months he'll be able to refi the sucker out of his 100% financing to an 80%.

Now, Homecomings, HSBC (as long as they're in 2nd place) and Wells Fargo are hands down the best lenders to deal with. To be honest, I've NEVER been able to close a short with Countrywide, Auroura, or Chase - In fact, we won't even bother with those.