What in your honest opinion would be the number one resourse for homes below 50% market value? Hud? REO? Newspaper? Bandit Signs? I see many posts from folks saying use other peoples money but with REO and HUD you cant you have to pay cash . So would you suggest using your own cash or HML @15% interest only . For these types of properties.Or not even buy Hud or REO? I know you can get deals through all these avenues of leads But if YOU had to put your finger on one Ideal REALISTIC situation what would it be?BUY REO @ 50% ARV rehab and sell for $10K-$15k in 3 months ?Buy one already fixed and rented @ 70% ARV (so they say) and rent it for a couple hundred bucks + cashflow in a best case scenerio?I have yet to find a lender that will lend 90% ARV on an investment property that is rundown and vacant and I plan on fixing and flipping.
Nobody wants to share the golden secret ,ay?
From what I’ve seen… It’s easiet to find them in places that I wouldn’t want to live. There’s less demand for homes. There’s fewer qualified buyers. That means more opportunity to buy below market value and lease option it to make money. That’s just my observation.
I’m glad I’m not alone Campbell… I’ve having a very hard time finding deals. Everything I’ve looked at should either be dozed, or they’ve put a little $ in a junker - like siding or a roof (never both?!?) and expect a huge premium for that…
Jeff
Well as I stated in another post I like it when no one replies because that means they either dont have a clue or they know but arnt willing to share.When I asked my Carlton coach this question shortly before I fired him(although he gets paid up front non refundable)he replied You havve to find out for yourself I cant give you these answers.Aparently nobody can.
Be patient, Dave. Interest rates are going to climb and foreclosures will soar. REO’s will finally become realistic and banks won’t be able to play hardball with prices anymore. I have a feeling that the deals will be there by the end of the year.
Da Wiz
he he he,
Just wondering if anybody is going to give their golden secrets away . Ive found a lot of great deals my concern is being able to resell them is the esclataing interest era.Is rehabbing and reselling too risky in todays market?
In this area, I’m not sure that you can find properties that will sell for 50% of their market value. Maybe of their ARV…
Keith
Whats the difference?
The market value is “as is”, the ARV is the “after repair value”…
Keith
http://www.hud.gov/homes/homesforsale.cfm
This site has a variety of Gov listings and it is free. You can go to your state and search for HUD, VA, US Marshall and USDA foreclosures.
I go to this web site for a resource to find houses. HUD has been very difficult to find good buys but they seem to have a large inventory right now in ND and they are lowering prices.
I have taken on some projects in the past that I shouldn’t have started. Basically they were Gut and totally remodel. Not a good idea for most people, but I do 90% of the work.
There are house out there that you can get for 70-80% where all you have to do is update flooring, paint and kitchen or bath updates. The margin for error is much smaller and you will only show a $10K profit.
It gets frustrating watching the ‘Flip This House’ show and see them making big profits. It is not as easy as they make it out to be. But I must admit after 3 years and 4 rehabs it is starting to get easier.
Another other thing that I have done is to actively look for signs of abandoned homes and go down to the county court house to find out who the owner is and where they live and give them a call or send them a letter.
My problems have not been finding the houses but finding the financing to get them done in a quick manner. Now I have my HML, but I want better rates to save more profits for me.
For USDA auctions you must have the money available within 2 hours or you don’t even bid.
Good Luck
NDI
I have literally spent many days and nights looking at the sight you suggested but that defeats the no money down theory right? you gotta have cash to buy there.
kdhastedt ,I have never in my 6 years seen a prop list for 50% of its as is value.if a prop is worth $150,000 ARV and it is on the market for $75k That in itsself is very few and far between.
My last project was a house listed with a realtor that we paid$25k for it with a HML loan and the ARV value on the appraisal was $132K. I completed the repairs for about $95K with carring costs. This came in over the 65% LTV so I had about $8 K into it with my money. We refinanced the house last month and moved into it with a cash out refinance. I didn’t make enough on this deal for the work I had to put into it.
I just listed a house today that was as close to a no money down deal as they get. I leased it with an option to purchase. It was a friend of mine who needed to move as soon as possible because his wife’s job transfer. I lived in the house for 6 months and paid the lease while I finished the rehab on the other project I discribed above. My option price was $80K and I put about $2K plus time into it and we listed it today for $105K. This deal was a luck of the draw type incident, but I acted to make it happen.
A friend of mine just purchased a house with a Line of Credit of $50K, he paid $25K and expect to put $20K into it and have it sold in 6 months for about $80k. I want his banker, but I am working at improving my credit score to above 700 again. I left my job over a year ago to do this full time so traditional banks won’t like me until I have two years of verifiable income.
It is very difficult to find a true no money down property.
NDI