BAD HTM SR 24

I have had excellent luck with foreclosures.I rehabed and sold 13 properties last year and back in Jan 2002, purchased 2 blocks of properties (3 duplexes and 7 houses) from one guy.I walked out of the closing(when i bought them) with $83,000.The bank that i deal with is a small farm town bank which i have been doing business with for 17 yrs and can close a deal in about 10 days with no money down and i have walked out of every closing,when buying with a nice chunk of money,depending on how i structure the the deal, it has ranged from $6,000- $83,000.The big banks always wanted 30% dn on investment properties and cash back at the closing when purchasing was almost non exisistent.I guess what i am trying to say is try to get a good repore with a small town bank where you are not just a loan number.Me and the president of the bank go out to lunch after every closing(he even buys) and have become pretty good friends.Rentals provide me with a nice steady monthly income and my retirement and rehabs make me alot of money now.

Todd

olysan

Dean - I did a lot of the rehabbing myself, but one of the things I learned is that I probably shouldn't have. Yes I saved some money, but I also tripled the time it took to completion. On the other hand finding and managing good contractors is a challenge in itself.

I think the flip vs rent question is dependant on the property. In my case this was a complete gut with a large upside so the profit outweighed the income. It comes down to a pretty simple TVM equation, which is more valuable the one time profit or the present value of the income stream?

Bad HTM - Do you buy foreclosures on the court house steps, or do you try and negotiate with banks before they get that far? I think you've hit on the key, you absolutely must build a relationship with a good aggressive bank for this to work.

Regards
Mike Olson

shinsr

Set up a single member LLC and buy it there, your credit will be evaluated as the only member of the LLC. It gives you the legal protection you need. Any questions, send a PM.

merlin540

i own 33 units and if you have any questions you can call me 513-477-2780 see ya charlie amann

skygod

Man am I glad I posted this thread.

Todd, are you getting those from the banks or the courthouse?

Charlie, are you dealing with homes or apartments?

Carl

merlin540

all apts no houses if you have any questions just call seeya

skygod

Thanks guy's I am going to save your #'s so I can call you with questions.

I would like to find a small local bank to build a relationship with, but in SoCal, most are large chains. I do have a mortgage broker that I have done 6 or 7 loans with in the past, and he is pretty sharp. Does anyone see a downside to using him vs. a bank. They sell all of the loans they write, but that is after the fact and should not affect me. What do you guys think?

ChrisK

The Broker question is a good one. A friend of mine is a broker, and I was sondering how much I would save or even spend when i use him instead of going straight to the bank.

skygod

The Broker is a middle man who has to make a profit also, but he has access to many programs. I can't think of any serious drawbacks.