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Anyone investing in Real Estate

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Old 08-23-2002, 10:34 AM
  #21
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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

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Old 08-23-2002, 11:11 AM
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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.

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Mike Olson
 
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Old 08-23-2002, 11:28 AM
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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.
 
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Old 08-23-2002, 05:02 PM
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i own 33 units and if you have any questions you can call me 513-477-2780 see ya charlie amann
 
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Old 08-23-2002, 09:18 PM
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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
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Old 08-24-2002, 01:23 PM
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all apts no houses if you have any questions just call seeya
 
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Old 08-25-2002, 11:34 PM
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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?
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Old 08-26-2002, 09:47 PM
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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.
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Old 08-27-2002, 03:27 PM
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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.
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