Hiya David:
I see what you’re saying 
but…most of the homeowners I’ve dealt with don’t have a penny to spare so that is why I asked how you’re able to do that.
If I was in the same situation and I had 2,000.00 to spare, and it meant you getting me out of a jam, I’d probably go ahead and pay.
What do you do when you come across someone if they aren’t able to make their loan current, how are they able to pay you?
…most homeowners loosing their homes are not emotionally attached to the home, they are in denial. I am sure there are a few…but most are in Denial. Daivid have you taken the class in ABQ with Lyn Carter?
He teaches how to find pre-foreclosures…and he mentions the cash for keys method…it little different than your stratagy.
Also you can get a conventional loan on a house no matter what the condition is. You can get a FHA(203K) rehab loan too. Right? I got a conventional loan on a home where the roof was caved in and leaking…72K and sold it for 136K…lots of work but well worth it
If a distressed owner tells me they are 3-6-12 months in arrears and don’t have a pot to pee in, I cry “BULLS**T!”
They’re going to give me a bass boat, a motorcycle, a pickup, a cow, a donkey, furniture, firstborn or a chunk of change…Why? I’ll answer a question with a question. What did they do with all the money they haven’t been putting towards the mortgage for the last 3-6-12 months? HUH? Braces for the kids? Well your children will have the straightest teeth at the Salvation Army…Point is, they did something with the $$ they haven’t been spending on the mortgage. I make 'em spend that money on my equity split arrangements.
The obvious exceptions are distresses caused by personal crisis. (Aquarians are Universal Humanitarians, ya know) I’ll dig in my pocket for those that truly need a hand up. Stupidity? Fiscal irresponsibility? KA-CHING!!!
ABQ NM, I left a personal message for you. Since we’re so close to this awesome market here, we would both benefit from a beer drinking, business session.
Just IMHO,
Dave
…
this may not be the place to ask but…
Does anyone have a guidline they use for what is a good net profit on a rehab? We have developed our own… having worked as nurses all our liveswe tend to figure in how many hours we spend on a rehab & what our net profit is
if we come out making 3-5 times what we did as nurses in the same number of hours we are happy… (needless to say we usually do cuz nurse pay sucks)
generally we have been getting a net profit of $25-$50K on each rehab we do…
seem good or bad as far as net profit.?
tia
So I went and looked at the house again last night and upon closer inspection the bones of the house still look like they are in good shape. It just needs some new drywall, carpet, paint and plumbing. my realtor seems to think that I should be able to sell it for 189-199 after the quick repairs. I am dropping the short sale idea, and am going to purchase it. My mortgage guy basically said I have 2 routes to pick from. I can either lease option the house back to her and have her do the repairs within a specified timeframe; this loan could work as a refi and I could easily get a better rate and have no out of pocket costs. OR I can do a straight non-owner occupied, but come up with the cash for closing, and repairs, and her moving costs.
Any ideas to help? ???
Ryan
Do you really think this lady is going to get the repairs done within a certain time? :o… You may be a little too optimistic as far as that goes…Becareful…after you buy it, it is yours, she will no longer have an invested interest in the property to fix it up.
She has been paying the $1800 in arrears for a year now, and if her payment went down to 1250 or so that i would be charging her it could be done. What I would do is give her 6 months to get the bathroom work done. Another 6 months to get the carpet replaced. And so on. If she doesn’t pay her rent and I evict, I would be in the same spot I would be if I just bought it from the bank. This way if she messes up down the road, hopefully some of the stuff is fixed.
Ryan
I am going to chime in here, though I will admit I didn’t read all the reply’s.
1st -If this home is still in bankruptcy be very careful! I would do a lot of research before doing a Sub2 with a property in bankruptcy.
2nd-If this house has not been discharged or dismissed, you can talk with the lender but nothing can happen until it is released.
3rd- Select Porfolio is historically difficult to work with. Their paper is funded by private investors who are less willing to “take a hit”.
Once the property has been discharged you could offer what is owed less all the repairs and it is likely to be considered. You have to know how to approach lenders and know how they work or you’ll spend a lot of time only to get a “NO”.
Hope this helps.
All the best,
Shawn
:party: :party: :party:v
thanks for the feedback. the bk discharged a few months ago. I am not doing a short-sale or sub2. I am going to buy it conventionally and lease/option it back to her. I did not want to do a sub2 with the bk, and I found that there would be plenty of profit based on what she owes. I am seeing an atty on monday to draw up the L/O agreement.
Ryan