Re: To JPiper, Steve and experienced Investors - Posted by SteveS(CPA)
Posted by SteveS(CPA) on June 20, 2001 at 23:47:00:
First off, I’m not sure if you were asking for me or Steve Cook (who is also very excellent). But I’ll add my 2 cents in just for flavor.
If this were my deal the first thing I would do is try to talk to the bank holding the property. I posted how I approach banks here at http://www.creonline.com/wwwboard/messages/34322.html.
As I am talking to the bank about their properties, I would ask them what their policies are dealing with REOs, how do they determine price and what type of discounts do they offer if you purchase large blocks or finance them their at their bank. This is kind of a sneaky question some will catch on others won’t. But many times after I’ve gotten down to they’re best price. I say, “oh yea, and I want the discount the your bank president offered for financng it here (or whatever type of discount he/she said).” This takes some long term memory on your part. But never forget those little off the cuff remarks, because it can turn an ok meal in to a nice piece of pie.
Now on to the actual property. I’m not sure you know enough about the property yet to know what you can do with it. Does it need minor or major repairs? What is the market like in the area? Is the property a fairly new listing? How much does the bank have into the property? What is the market like in the area? Is it a buyers market? Or a sellers market? If you can’t buy it to flip, do you have a partner who is willing to use their cash and or credit to finance the property and do a L/O or subject to to another buyer? Do you have a buyer? This property seems to me outside of the average rent scale, so you’ll need a real buyer.
Once you have those questions answered you should be able to put together a plan of attack. develop a plan on how you are going to aquire that property and make you offer. But its very important that you know specifically, how you are going to buy it, what you going to do with it when you buy it, and how you are going to make money with it. Do not make an offer until you have all this tied down in your head and any other partners that you have brought in on the deal.
I hope this helps