Posted by keith hutson on September 26, 2003 at 20:22:18:
You luck thing Kelly! The best part of Florida!
I believe when you do real estate you have to account for your “risk”. If you have to do a deal where you made no profit you need to go back to the boards and read again.
Any bank will take that kind of deal. In fact I bet you could get a dozen banks to do those kind of deals. You need to put the creativity you have read to use. Contact 12 banks and keep making offers. First you must prepare a “proposal” for them, a short, bulleted proposal which is a type of resume and sell yourself.
Don’t do deals where you can’t walk away with at least $10,000. Your time and risk is worth something. As someone told me in the past: “Your time is all you have to sell.” Make money for your time and risk. Banks do. They look at your circumstances, credit etc and base interest rates on the risk.
What are we really looking for? (newbie question) - Posted by Mike_MS
Posted by Mike_MS on September 26, 2003 at 07:29:19:
After reading and reading and reading, I think I am ready to make an offer. I’ve found a bank foreclosure that needs some work. The bank that is holding the property will sell the house, pay closing, and provide money for repairs all to be financed thru them. Now this could be a no money down deal with the repairs paid for and added back into the financing by the bank. But, when it is all said and done the value of the house would be very comparable to the others in the area. Is it worth the effort just to get a house no money down and have something with little profit? Or should I jump all over this just because it is a no money down deal? What are we really looking for in this scenario?
What are we really looking for? (newbie question) - Posted by Scrooge McDuck
Posted by Scrooge McDuck on September 27, 2003 at 15:43:05:
It depends what you want and what your goals are. Personally, I never invest in anything unless I can make a profit. That’s the definition of an investment, it makes money.
“No money down” is not the goal. It is only one method for making a deal and not necessarily the best one, or the most important one.
So don’t let anyone confuse you. It’s not a good deal if there is no profit in it, even if it is no money down.
Re: What are we really looking for? - Posted by Brian
Posted by Brian on September 26, 2003 at 17:34:28:
Be creative. Why not counter with a short sale offer in addition to them financing the deal and the repairs. What’s the worse that could happen, they say no and except for a bit of your time, you’re out nothing. Or you counter again with the short but agree to get your own financing. Or… they say yes and you have the potential for a great deal.
Re: What are we really looking for? - Posted by Brent_IL
Posted by Brent_IL on September 26, 2003 at 10:03:50:
What I was thinking is that you have to start somewhere to get past the reading stage. How many of us have spent money on non-real estate education that was never used? In your deal, you get paid a small stipend to learn how to be a general contractor.
The bank will not let you spend their money frivolously, so the inspections and draws are a safe-guard against inexperience.
If there?s nothing else going on and it wouldn?t be on my dollar, I?d take this project step-by-step and do the deal for the experience. When you are finished, you?ll have a better working relationship with the bank. On the next one you can say that you bailed them out on this one, but that it?s time for you to make some money.
Don?t forget that there?s a cost for your labor to be factored into the cost of repairs, just like any other person would charge.
Re: What are we really looking for? - Posted by michaela-ATL
Posted by michaela-ATL on September 26, 2003 at 07:46:55:
Some may disagree with me, but I don’t think it’s worth it. For one thing, there are 100% loans out there, where you can buy a fixed up property without downpayment. Then there’s the hassle of having to rehab it. That should be worth something. If you don’t even get any profit out of it, then you’re basically a free contractor for the bank and they get to sell at full market value.
Re: What are we really looking for? - Posted by michaela-ATL
Posted by michaela-ATL on September 26, 2003 at 08:45:17:
I’m not sure how to explain it differently. Basically, I would think people coming to this board are looking for creative real estate techniques. Anybody can buy property at full market value. yes, there might be profit in it in future apreciation, but I would not consider that real investing.
So, if you then take a house, renovate it and have exactly fair market value in it, there’s no profit, in fact, there’s a loss in terms of all that labor, to renovate, involved.
I for one wouldn’t be interested in something like that.
Re: What are we really looking for? - Posted by kgreen
Posted by kgreen on September 26, 2003 at 09:16:37:
I would have to agree with michaela. There is no way I would do a rehab and hope for my profit through appriciation of the project some period of time down the road. I don’t know about anyboby else, but if I can’t make at least 10-15K CLEAR PROFIT from a deal then I will not fool with it. That is just my opinion.