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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Brian, you said it all! Great post. Thank you (NT) Posted by Rick, the Probate Guy on April 22, 2008 at 6:45 AM In Reply to: Just got paid on my next one posted by BrianH on April 22, 2008 at 0:30 AM : So I gave a review on my Norwalk rehab retail deal and I just got paid on another one so figured I'd post what I learned this time around. : I rehabbed this one much closer to home this time, it was practically my back yard and that made things nice and easy. There really is something to staying in your immediate area and I am now a firm believer in making sure your market area is a easy drive from your home and office. : This rehab didn't have the city/county issues that my last one did and we didn't need permits and inspectors and such. However, the house was red tagged a long time ago for broken windows while the bank owned it. The bank boarded up the home but never paid the fines which shows up on a title report. The bank, asset managers and REO agents were not keen on addressing the issue which left it up to me. I had to "bribe" the guy and department in the county that was responsible for releasing this title issue. It cost me two pizza's and a two liter of soda. Like most things in life these poor people at the county deal with irate home owners daily and a little niceness got me a zero demand release in two days which was much better then the 15 days it normally takes. Had I taken the normal route I would have waited the time and paid the few hundred dollar fine. : The nicest thing about my purchase on this property is it worked anyway I looked at it. After acquisition and repairs I was into it for a grand total of $115,000 and it would have rented for $1,100 per month very easily so it made sense as a rental. I was able to sell it for a tidy little 16% cash on cash return with a total turn around of 97 days start to finish. Knowing that no matter what, this deal worked was really nice and there was not much pressure either way. I originally intended to keep it as a rental however it turns out I'm going to be a father and that prompted me to sell it and set most of the profit aside as baby emergency funds. I did set aside some for the Schaub thing in Vegas next month though. : Another nice thing I witnessed is how much buyers jump when you hit a certain price point. The difference on this property between slow activity to multiple offers was 5 days and $15,000. It only took me 23 days to get it into escrow so I was aggressive. The jump in activity after going below a certain threshold was very surprising considering I had it $5,000 higher then my sales price for a week and no offers. : The financing the buyer used was CalHFA. Unlike FHA CalHFA doesn't require the owner to hold title for 90 days. Like FHA it allows a first time buyer to get into a home with little down and allows seller credits, gift funds and all that good stuff. Also like FHA it was a painfully slow loan process but as long as you go into it knowing that a buyer using CalHFA is going to take a while to get the loan done you will be just fine. I would suggest all CA sellers get to know a good CalHFA loan person as they would be a very valuable source of buyers for quick rehab and retail inventory. : I now believe there is a reason guys like Ward, Norris, Cantu, Miller, Schaub, Fortunado etc. can stand in front of a audience and tell people exactly how and why they do things they do to build wealth and it will never effect their business one bit. It is because most people are to chicken chit to actually get out there and don't know a good deal when it comes calling. For fun I printed up a flyer and distributed it to lots and lots of the "I buy houses" and "Cash for your house" business card carrying crowd and every single one of them was a giant wimp. I presented a legitimate deal at MY purchase price in an attempt to flush out a wholesale buyers list and all of these supposed investors froze like a deer in the headlights. I now know why these REO agents roll their eyes when they hear the line "Hi, I'm an investor". It took me exactly 30 seconds on my HP12C to figure out this home was a winner no matter what, I acted and now have a solid little cache of cash for my coming baby. Sitting on your hands and talking about stuff gets you know where in life. : Like I heard someone say ;) Sometimes you just have to shut up and open escrow....... : Oh and CCinOC, yes I feel the amount of profit I made was 100% acceptable for the time, effort and amount of risk involved. Follow Ups: Post a Followup: Name : E-Mail : Subject : Comments: : : So I gave a review on my Norwalk rehab retail deal and I just got paid on another one so figured I'd post what I learned this time around. : : I rehabbed this one much closer to home this time, it was practically my back yard and that made things nice and easy. There really is something to staying in your immediate area and I am now a firm believer in making sure your market area is a easy drive from your home and office. : : This rehab didn't have the city/county issues that my last one did and we didn't need permits and inspectors and such. However, the house was red tagged a long time ago for broken windows while the bank owned it. The bank boarded up the home but never paid the fines which shows up on a title report. The bank, asset managers and REO agents were not keen on addressing the issue which left it up to me. I had to "bribe" the guy and department in the county that was responsible for releasing this title issue. It cost me two pizza's and a two liter of soda. Like most things in life these poor people at the county deal with irate home owners daily and a little niceness got me a zero demand release in two days which was much better then the 15 days it normally takes. Had I taken the normal route I would have waited the time and paid the few hundred dollar fine. : : The nicest thing about my purchase on this property is it worked anyway I looked at it. After acquisition and repairs I was into it for a grand total of $115,000 and it would have rented for $1,100 per month very easily so it made sense as a rental. I was able to sell it for a tidy little 16% cash on cash return with a total turn around of 97 days start to finish. Knowing that no matter what, this deal worked was really nice and there was not much pressure either way. I originally intended to keep it as a rental however it turns out I'm going to be a father and that prompted me to sell it and set most of the profit aside as baby emergency funds. I did set aside some for the Schaub thing in Vegas next month though. : : Another nice thing I witnessed is how much buyers jump when you hit a certain price point. The difference on this property between slow activity to multiple offers was 5 days and $15,000. It only took me 23 days to get it into escrow so I was aggressive. The jump in activity after going below a certain threshold was very surprising considering I had it $5,000 higher then my sales price for a week and no offers. : : The financing the buyer used was CalHFA. Unlike FHA CalHFA doesn't require the owner to hold title for 90 days. Like FHA it allows a first time buyer to get into a home with little down and allows seller credits, gift funds and all that good stuff. Also like FHA it was a painfully slow loan process but as long as you go into it knowing that a buyer using CalHFA is going to take a while to get the loan done you will be just fine. I would suggest all CA sellers get to know a good CalHFA loan person as they would be a very valuable source of buyers for quick rehab and retail inventory. : : I now believe there is a reason guys like Ward, Norris, Cantu, Miller, Schaub, Fortunado etc. can stand in front of a audience and tell people exactly how and why they do things they do to build wealth and it will never effect their business one bit. It is because most people are to chicken chit to actually get out there and don't know a good deal when it comes calling. For fun I printed up a flyer and distributed it to lots and lots of the "I buy houses" and "Cash for your house" business card carrying crowd and every single one of them was a giant wimp. I presented a legitimate deal at MY purchase price in an attempt to flush out a wholesale buyers list and all of these supposed investors froze like a deer in the headlights. I now know why these REO agents roll their eyes when they hear the line "Hi, I'm an investor". It took me exactly 30 seconds on my HP12C to figure out this home was a winner no matter what, I acted and now have a solid little cache of cash for my coming baby. Sitting on your hands and talking about stuff gets you know where in life. : : Like I heard someone say ;) Sometimes you just have to shut up and open escrow....... : : Oh and CCinOC, yes I feel the amount of profit I made was 100% acceptable for the time, effort and amount of risk involved. [ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] WWWAdmin 2.0a © 1997 Matt Wright and DBasics Software Company, All Rights Reserved

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