2nd HOME IN ESCROW.....IN LESS THAN 21DAYS

I absolutly agree and love how your just taking off.My goal is to follow these steps also.Sometimes I catch myself reading on here to much and I know I could of used that time putting in offers or keeping up on my ads.
Keep us posted northwest.
I know your motivating me.

Thanks Jason......I know that you can do it, because I am nothing special...just motivated to make it happen. I have 4 kids and I am going to leave them something when I'm gone. It's a DONE DEAL.

Sam is right, it is motivation. The housing market is so soft and with the media's doom and gloom about the market everyday the perceptions allow it to be even softer. Getting a great deal that can be profitable RIGHT NOW is simply about spending a few hours online, taking a drive to some properties and filing some offers - regardless of your strategy.

You have to think about it, there is only so much room for loss on the asset. I can't reasonably see this continuing much longer, and I don't think investors do either given the sales numbers despite the foreclosure rates. The point is this downturn had provided a unique window of opportunity over the course of decades. Whether you get in right after it opens or right before it closes is irrelevant, so long as you get in.

I just got offered up a 4 plex in a central location that currently pulls around $700/mo unit for $120k. If you are in a area that has been hit with foreclosures the properties there are very good deals everywhere you look. even coming to you without looking. The chore now is separating the great deals from the very good deals. The deals are everywhere for anyone with either the money, credit or the drive to do assignments or bird dogging.

I think we are going to sharp correction in real estate after investors have loaded up and a bottom has been declared by the media - which everyone tries to rush back in at cheap prices - so long as credit is not froze up for even well qualified borrowers. This is how oversold markets often react. Also, gold prices are also an interesting correlation when mapped out against housing prices over the past.

Now THAT was a good deal! Great job Sam, I am really impressed. I can tell when somebody is out there doing it and when someone is faking it. Go out there and set records. Lead the way and bring as many people along as you can. Get it done!

You are my inspiration......I have a possible 3rd and 4th properties already lined up just waiting for offer acceptance.....burning the candle at both ends here.....LOL

Hey Sam you said that you figured on your basic deductions. What are they exactly? Thanks for the help.

Josh

Big Congratulations to you Sam! Way to go! Are you buying and holding these REO's? Are you using a broker to place the offers instead of a realtor? Keep the offers going and keep us informed on your progress! i am so proud of what you are doing!

How are you financing all these deals? I know one of your deal you used hard money. Are you using hard money again, or are you using other methods of financing or are you assigning them? Just curious, thanks!

Lloydsap

You have to look at FMV prices. Also figure if you rehab it the ARV. Also, is the price in a range that will allow for a mortgage to actually be paid in full by renters...I look at these things, and in my area I want to keep my Rents below $1200 for a 3 bd 2 bath....preferably below $1000. So I know what a mortgage costs and these are figures that create my MINIMUM bottom line. Then I stretch it to get more value, and a lower payment. I do this by offering LESS for the house than I think is fair. I don't want to be fair. I want a GREAT DEAL. If this house isn't it....NEXT !! You and I are not DESPERATE. THEY ARE. Posture yourself in a way that you don't care whether they accept it or not. Have a This is what I will pay and NO MORE attitude.

I have a couple of REO Brokers that do the BPO'S for the banks. And YES....these are to hold on to. I don't expect to sell any of them until the market is right. It's NOT a flip market right now. Dean teaches this. The market cycle is at the bottom...this is where investors stock up on inventory to be cashed out at a later date. Of course you CAN flip, but it will be at a huge discount, with minimal profit typically. 20K or 100K...you Choose. As long as it cashflows.....

As to financing.....Hard Money where ever I can....In the case of the REO I just got.....the Bank is REQUIRING that I get pre-approved by their lender, even though I gave them a proof of funds letter from MY lender. If they approve me....I will consider using their lender, however at MY TERMS.
I will insist on Little to NO DOWN PAYMENT. Whether they will roll it into the loan I don't care, but stay out of my pocket or I will use MY LENDER. That's my attitude. The banks are DIEING to get rid of these properties.......GET OUT YOUR SICKLE....IT's TIME FOR THE HARVEST.

Wow you are making this happen!

Will you tell us all how you are paying for this property and what your exit strategy is?

Was it hard money?

Are you going to cash out refi and hold?

This is incredible, i am in South Florida and there are tons of Bank owned homes in every neighborhood.

first off GREAT JOB!!!!

You said "I had figured that the MOST that I could rationally pay for the property was $120K and that was based on the ARV ($200K) that I figured"

can you please show your numbers on this deal and why you thought 120 was the most you could spend. Are you saying the house needed 20k in repairs? Cause 70% (maximum % of ARV,that should be willing to pay) of 200k is 140k.

thanks

In my area 65% is the magic ARV for the lenders that I am working with, but with that In mind.......I look at the Big picture of the ARV and then deduct in my head because I don't want to have to push it too far. I want TREMENDOUS equity in every home I purchase....if possible. Also I am not wanting to max out the loan equation. I prefer to go to my lender at the 60% range Knowing that my Comps will fall into a range that they will INDEED fund.

Sam, you are really doing an excellent job and is an example to us all. Does you hard money lender work in New York City, and if so, could I have some information. Thanks.

Sandra

hi sam

i am in awe!!! ...again... you r a masterpiece!!!

here's to living the dream!
cynthia

Cheer for you! I will be more brave like you. It is the time! Can you find another time like this to buy with huge discount?! Maybe next life time.

Northwest, any suggestions on what to do after you use HML to get the properties. Usually they lend on short term.

I'm so excited for you. Job well done! I've been looking and doing research on foreclosures all over in Moline, Illinois. This is where I want my first transaction to be, right in my home town. I have more experience with new construction, but I have been looking at older homes lately. Thanks for all the great information. Kristy

thanks for the inspiration Sam, and everyone! I study deans program every night i dont understand everything yet but this is very exciting! ive been building houses for 30+ years.now disabled , i really need a new career, i think this is it. keep up the good work, thanks for all of the good vibe, its very encouraging!!!

Congratulations, I've not been on the site for a few days, it is great to come back and be inspired by this thread.
Angela

Hey Tom and everyone else,
Just remember that if you don't submit the offers,then nothing will happen.That's what I realized for myself when I wasn't going anywhere.
I submitted about 12 last month and I got one.They held onto it for about a month untill I got the email "accepted". Still waiting to here if they accept my terms.I did 15 more email offers last night and one verbal offer,which I was nervous to do.
Looking forward to my first deal.

Sam -

Way to GO!!!

Quick question, along the lines of everyone else's.

Are you using the HML on this, and your 65% ARV is working with their rates and fees for the entire holding period, or will you be doing a refi at some point in the shorter-term future?

Those numbers you gave are PHENOMENAL!! I'm just starting to venture out here in SW PDX and look at some. The mental fear of trying to learn a new market area is astounding. Gotta just blow past it. We're also finally officially in escrow on the apartments back in SW Oregon. Woo hoo!

Keep up the good work!! Looking forward to meeting you at one of the local rei club meetings one of these days!

Tracey R.

Hey there........I told my wife that if we do NOTHING.....then NOTHING is going to happen. If we desire to move on financially ....we have to do something different. This business works........but you have to work IT. NO one is going to stuff equity into your pocket.....you must get out into the field and begin the harvest. The fields are RIPE with value and you must insist to yourself that you want your share, otherwise you will be like the Masses.....with empty pockets and their future rotting in the field. You must strike while THIS iron is hot. How many millionaires will be made by the misfortune of the masses? MANY. Will it be YOU or someone else? The only thing different about Matt Larsen and most of us is that he is WORKING HIS BUTT OFF. That coupled with KNOWLEDGE he has gained by educating himself has turned him into an EQUITY MACHINE. Not to mention CASH. Let's do this people. No one else will do it for you. Take charge.
Sam

Great success story!

You mentioned that you are working on your 3rd and 4th deal. How will you finance these deals? You mentioned that you don't want to max out the "loan equation". Can you explain what you mean by that? Also, when you say that you go to your lender in the 60% range, does that mean that you want a loan for 60% of the ARV? Please explain.

Thanks,
Brent

You want to try to make any deal that you get into a Hard Money deal EVEN if you use conventional financeing.....By this keep your offers in a range that will allow Hard Money financing ....ie...60% to 65% LTV which is the value at ARV. Hard Money is ENDLESS....if you have enough sources for it. You literally can buy ANYTHING no matter the price....IF THE DEAL MAKES SENSE.
The hard money people want security in their investments. So if you want their money you better have a SMOKIN HOT deal or they won't lend you a dime.
There are plenty of AWESOME deals out there so don't be afraid to ask for the world.....you may just get it.

I have contacted a few HML and now they are telling me that they will lend me the 65% of whatever my offer is (they want me to risk something). Am I dealing with the wrong HML's? Any advise? Thanks for all your info.
Daniel

HML's will only loan funds based on FMV - 35% OR MORE. They do want some skin in the game if you are NEW, but in the case of my current lender... www.privatemoneysource.com ...they say that after a few deals they will lend without Skin in the game. In my case they are placing a small lien on my current home in lieu of CASH for the down.

Sam

Yeah I love the banks that say they want to preapprove you when you all ready have financing thru a different lender, i.e. countrywide, wells fargo. they should be happy just to get rid of the reos. I've seen so many junkers they have setting on the market, that now they have gone to auction, when they could have dumped them 6 months ago. I guess its a way to pick up added business plus a reliable customer.

Bruce

"only those willing to risk going too far can find out how far they can go" -- T. S. Eliot