Okay, so we have officially started the work on the 1st HUD property. Carpet should have come out today and floors bleached. Not sure if the painting has begun but for sure tomorrow. I have to get to Home Depot or Lowes to pick out carpet THIS week and set a date for installation. I want the house listed by mid-July. The electric and water were turned on and a plumber came out today to make sure we were not leaking in a million areas. Buying "as is" can be a little scary.... Oh Yeah, I'm also getting 3 estimates for power washing the outside of the house. Dave said our power washer was too small and would take him forever and a day to get it done. And, since he is working 6 days/week, 10 - 15 hrs./day I didn't want to eat up another one of his days. Sooo, I had a nightmare last night that when we got the property today the roof was leaking everywhere and there was flooding in the house! Thank goodness it was just a dream!! : )
Remember the guy I went to meet a couple weeks ago to start a short sale deal? He never called me back or sent me the paperwork. Figures. This is why I hate them so much! I didn't call him either b/c I am not going out of my way to get them to sign on just to back out later on down the road!
The ss I'm working on with First Horizon ordered a 2nd BPO.... It came back HIGHER than the first. I am soo done with this one too. The bank ordered it without called me OR the listing agent so I'm assuming it was just a drive by. Now, if a bank is ordering a 2nd BPO based on contractors estimate, Home inspection, CMA's, etc. wouldn't you think the bank would insist on an interior BPO? I just don't get their thinking? Anyway, I gave the listing agent the phone number to the Loss Mitigator and she hasn't heard anything either (I don't think... I'm going to email her now!).
I put in an offer last week that was declined. They accepted another offer. I'm watching another HUD property to see when it comes down again in price. This next price reduction should be a "significant price reduction" so I'm going to put in my offer. I drove by it b/c I was in the area over the weekend and it looks nice, actually. The only obvious problems are that it is on a busy street and is facing a bus company.
Monday, June 30, 2008
Wednesday, June 25, 2008
No buyer
So, the person I really thought would buy the HUD property wasn't interested. His reasoning? He didn't like the basement and there was a boiler, i.e. no duct work to put in central air. BTW, I told him it was a boiler about 3 weeks ago?! Whatever. The people never called to have their contractor go through either. Whatta ya gonna do? So, we have someone coming to paint in a week and we're hoping it will take a week to paint. He is also going to rip up the carpet, bleach the floors and power wash the siding. After the painting is all done we're going to have the carpet guys out. I'm hoping to have it on the market in 3 weeks. Has anyone ever put a home on the market before it was complete?! Probably. So, once the carpet is out and the floors are bleached (smell is gone), maybe we'll list. We're going to list it at $89k, I think. It has an ARV of $125k so someone is still getting a good deal!
Our offer was declined for the Whitewater property. I'm actually kind of relieved! I was stressing a little about having too many properties under contract. I KNOW it's a good thing but if I have to close on them myself, it would be too hard. I don't have enough buyers to push my properties.
I do, however, have an interested party on the 2nd HUD property that I have under contract. We're going to show him before we close which is a big NO NO for HUD but we're going to try and keep it on the down low. My starting price with him was for $74k and I just lowered it today to $69k. We have it under contract for $62.7k. I won't be making a killing but I really just want this one gone. If I wasn't sitting on the 1st HUD property I wouldn't be as stressed but, hey, if I can make $5k I'll be content!
Off to put the kiddies to bed!
Our offer was declined for the Whitewater property. I'm actually kind of relieved! I was stressing a little about having too many properties under contract. I KNOW it's a good thing but if I have to close on them myself, it would be too hard. I don't have enough buyers to push my properties.
I do, however, have an interested party on the 2nd HUD property that I have under contract. We're going to show him before we close which is a big NO NO for HUD but we're going to try and keep it on the down low. My starting price with him was for $74k and I just lowered it today to $69k. We have it under contract for $62.7k. I won't be making a killing but I really just want this one gone. If I wasn't sitting on the 1st HUD property I wouldn't be as stressed but, hey, if I can make $5k I'll be content!
Off to put the kiddies to bed!
Monday, June 23, 2008
Today's Closing
We closed on the HUD property today. It seems like forever since we put the offer in but it's now officially ours for good or bad?! Of the 3 people that looked at it tonight only 1 was mildly interested... not good. His estimate was already at $20k and he was still counting. My contractor and myself were thinking in the neighborhood of $15k - $20k, depending on what you wanted to do. They may be bringing their contractor through this week but we'll see? Soooooo, I guess I'm going to be setting up carpet/painters for the next week and get estimates. I need this one OFF the books before August. I'm sure I'll get an ulcer if we still have it and I'm delivering the baby!!!
I put in my best and final offer on the Whitewater house for $55k and $3k EMD. I should find out tomorrow if it was accepted. The house was on a HUGE lot and it looked okay on the inside. There was some water damage/mold in the laundry room but didn't seem too bad. If they accept I'll have my contractor go take a look as the front room sloped. If I get this one I really need to simo close it b/c, as I said before, getting 2 loans probably is not in the cards for me. AND, I still have that other HUD home under contract. I may need to back out of that one, we'll see? IF I were able to show before closing it wouldn't be too bad but since I have to wait for closing it gets too hard. Of course, I'm starting to get nervous that no one will want the property.
Here we go again, cross those fingers for me!!
I put in my best and final offer on the Whitewater house for $55k and $3k EMD. I should find out tomorrow if it was accepted. The house was on a HUGE lot and it looked okay on the inside. There was some water damage/mold in the laundry room but didn't seem too bad. If they accept I'll have my contractor go take a look as the front room sloped. If I get this one I really need to simo close it b/c, as I said before, getting 2 loans probably is not in the cards for me. AND, I still have that other HUD home under contract. I may need to back out of that one, we'll see? IF I were able to show before closing it wouldn't be too bad but since I have to wait for closing it gets too hard. Of course, I'm starting to get nervous that no one will want the property.
Here we go again, cross those fingers for me!!
Friday, June 20, 2008
Closing and counter
I emailed my mortgage guy last night to find out where the prelim. HUD was so I could get my downpayment in a certified check over the weekend. He calls me today at work saying I need to get to my bank asap b/c HUD is requiring I wire the funds by 12 noon. Well, I work an hour from my bank and couldn't leave even if I wanted to. So of course, rush, rush, rush and got the funds wired in time. I'm not sure if it's just me but it always seems so feast or famine. When we get close to closings it seems like I work off adreneline. There is SO much going on. This one isn't too bad but the last one where I did the simo close was crazy!! It's all good as long as I keep the deals going, pay off my debt and work to become full time - my ultimate goal!!! Each deal gets me one step closer!
We got a counter offer on the property that I offered $47k for and it's listed at $59k - the Whitewater house. They came back at $56k and a $2k EMD. Update: My realtor just received a multiple counter offer and we need best and final by Monday at 9am. I am going to look at the property tomorrow. I know I should remove all contingencies and up my EMD to $3k or something but I am so uncomfortable not having something to fall back on. As I've stated before, my biggest fear is foundation issues. I don't think I'll be able to get anyone out there to look over the weekend - maybe? Here is the picture of the house. I'm assuming someone was rehabbing it b/c it was built in 1885 but looks like new construction from the outside. I'm so curious to see the inside! Maybe during the rehab they F'kd some things up? I guess I'll find out tomorrow!
Wednesday, June 18, 2008
HUD Property #1
We're set to close the first HUD property this Monday, June 23rd. I'm sure you've heard, the midwest has had terrible flooding and it has affected the neighborhood I'm buying the house, unfortunately. My realtor has gone out to look and so far so good BUT we're going to take another look on Sunday just to be sure the river has not found it's way to my house. So far I have 4 people who are going to look at the house - 2 are cash buyers and the other 2 I'm not sure about. I'm hoping one will sign a contract. However, if they do not I'm going to put in paint and carpet and sell for a bit more money. Homes in the $85k range in this area (pre-flood) were selling very quickly. I think I could list the house for that price after minor updates and sell fast - I hope. I'd rather do a wholesale deal but I'm not sitting on this one like I did the duplex. I'm going to set up appointments with painters/carpet people next week.
I saw another house that I put an offer on a while ago back on the market. There was an offer that apparently fell through. This was months ago, I can't believe it has taken this long to get back on the market? Whatever... we're going to put an offer in tomorrow. It's listed for $59k and my offer is for $47k just to see what they say. The ARV would be around $125k. Unless there is something majorly wrong with the house, it is another great deal -- even at the $59k. I just cannot offer full price though. We'll see what the counter is, if any. Actually, IF they did accept this offer (or something close) it would be really hard for me to come up with funds to close since I have the other 2 properties under contract. I guess I'll cross that bridge if/when I come to it.
I'm going to meet the pre-foreclosure guy tonight at his house. I'm dreading it so bad. I just know he's going to back out or not be interested or whatever. Anything to waste my time. Boy, have I gotten sour on homeowners?!
Think that's it for now......
I saw another house that I put an offer on a while ago back on the market. There was an offer that apparently fell through. This was months ago, I can't believe it has taken this long to get back on the market? Whatever... we're going to put an offer in tomorrow. It's listed for $59k and my offer is for $47k just to see what they say. The ARV would be around $125k. Unless there is something majorly wrong with the house, it is another great deal -- even at the $59k. I just cannot offer full price though. We'll see what the counter is, if any. Actually, IF they did accept this offer (or something close) it would be really hard for me to come up with funds to close since I have the other 2 properties under contract. I guess I'll cross that bridge if/when I come to it.
I'm going to meet the pre-foreclosure guy tonight at his house. I'm dreading it so bad. I just know he's going to back out or not be interested or whatever. Anything to waste my time. Boy, have I gotten sour on homeowners?!
Think that's it for now......
Friday, June 13, 2008
HUD Property
We looked at the HUD property last night and it seems to be in pretty good shape. Nothing needs to be done to the kitchen/bath/bedrooms except paint, maybe new linoleum in the kitchen. Also, the kitchen does not have appliances. The living room (an add on) needs new sub-flooring in one area and then carpet. This room wouldn't even need paint. The roof needs some work and the siding was not done properly but nothing major. We were a little concerned of the add on and how it was built but neither my dad nor my contactor could get in in the crawl to take a look. This is the one area I'm a little nervous about. My contractor didn't think it was too big a deal which makes me feel a little better. But, since it's a HUD I will not be able to show the property until after closing. This part SUCKS! Since I'm getting a loan for the HUD property next week I don't know how difficult it will be to get another loan. My ideal would be to have the 1st HUD property sold by the time the 2nd HUD property closes! We'll see if that happens...
I'm still going to submit offers but I'm going to make them waay LOWER. Up until now I have been submitting offers using Steve's 70% formula, which is great. But, since I have 2 going now I don't want to get overwhelmed - as much as I would like to be. I can't get "stuck" with a house. If I do get "stuck" I have a back up plan (rent) but I can't do that with more than one house, at least at this point in time.
I still have a lot of debt to pay off and a baby due in August so I can't get too ahead of myself!
Next week I am going to call a couple local banks to see if they will work with me in getting my loans OR some type of LOC. My mortgage guy is great but his cc fees are in the area of $2.5 - $3k for a loan of $58k. More like a HML if you ask me.... he gets it done for me and that's what matters for now. I just need to see if a local bank would be better. My credit is good but my debt to income is SUPER high and I can't use my husbands credit - it sucks.
The worst thing they can say is no and I've heard that a lot!
I'm still going to submit offers but I'm going to make them waay LOWER. Up until now I have been submitting offers using Steve's 70% formula, which is great. But, since I have 2 going now I don't want to get overwhelmed - as much as I would like to be. I can't get "stuck" with a house. If I do get "stuck" I have a back up plan (rent) but I can't do that with more than one house, at least at this point in time.
I still have a lot of debt to pay off and a baby due in August so I can't get too ahead of myself!
Next week I am going to call a couple local banks to see if they will work with me in getting my loans OR some type of LOC. My mortgage guy is great but his cc fees are in the area of $2.5 - $3k for a loan of $58k. More like a HML if you ask me.... he gets it done for me and that's what matters for now. I just need to see if a local bank would be better. My credit is good but my debt to income is SUPER high and I can't use my husbands credit - it sucks.
The worst thing they can say is no and I've heard that a lot!
Wednesday, June 11, 2008
New Start
This is the start of a new blog here BUT I have been blogging over at www.FlippingHomes.com for over a year now. The FH site rocks! I probably would not have done anything close to what I am doing now without this site. I'm serious. If you haven't checked it out go now... www.FlippingHomes.com. I'm going to post a link to my blog from last year so others can read it and see what I've done:
http://www.flippinghomes.com/blogs/viewblog.aspx?b=89
The above blog started last year March through today, June 11th, 2008 (my daughter's 2nd birthday!). I've closed 3 deals successfully, have another one closing June 23rd and just got another one accepted today.
So here's the deal... the property I got accepted today is another HUD owned property. As stated in a previous post (see above link) my mortgage guy told me that if a HUD property sits for a certain amount of time, they will take a net of 50% of list price. This home is not in my target area but I thought I would test his theory. It had a "significant price reduction" label so I thought, "What the hell". My initial offer was rejected but they gave me the net price they were looking for, which was 60% of list price - still a good deal all day long. We are going to see the property/sign contracts tomorrow night. According to the HUD inspection report it sounds like there isn't too much wrong, at least nothing major. The list price is for $96k, it has an as-is value of $128k (which is a bunch of bs, that is most likely the ARV) and my offer is for $62,700. I'm hoping no more than $10 - 15k in work.
The property we went to see this weekend was a piece of crap. I kept my offer at $55k but I'm sure the homeowners will decline. This is not a bank owned property. The RE agent needs to re-think his list price!
I had an offer on an REO duplex a while ago that needed a lot of work and had water damage. The bank declined over and over. I just got a note from my realtor saying they will accept my offer now. It's my turn to now say - "Declined"! I don't know what I would pay for it but it certainly wouldn't be $55k! We've had terrible rain the past week and the basement in this property probably has water to the ceiling. Not to mention the water damage in both units.
I had to re-schedule my appointment for tonight with the pre-foreclosure guy. I forgot it was my daughters birthday. How bad a mother am I?!?! We're rescheduling for next week Wednesday at 5pm. Just throwing that in in case I forget the time : )
I have not contacted First Horizon regarding the SS I needed an answer on by Friday, June 6th. The buyer wants me to keep trying but I thought I would lay off for a week and see if they (FH) got back to me. By the way, I did add him to my buyers list. He's buying up properties for rentals so I hope I can find him something soon!
Gotta run...
http://www.flippinghomes.com/blogs/viewblog.aspx?b=89
The above blog started last year March through today, June 11th, 2008 (my daughter's 2nd birthday!). I've closed 3 deals successfully, have another one closing June 23rd and just got another one accepted today.
So here's the deal... the property I got accepted today is another HUD owned property. As stated in a previous post (see above link) my mortgage guy told me that if a HUD property sits for a certain amount of time, they will take a net of 50% of list price. This home is not in my target area but I thought I would test his theory. It had a "significant price reduction" label so I thought, "What the hell". My initial offer was rejected but they gave me the net price they were looking for, which was 60% of list price - still a good deal all day long. We are going to see the property/sign contracts tomorrow night. According to the HUD inspection report it sounds like there isn't too much wrong, at least nothing major. The list price is for $96k, it has an as-is value of $128k (which is a bunch of bs, that is most likely the ARV) and my offer is for $62,700. I'm hoping no more than $10 - 15k in work.
The property we went to see this weekend was a piece of crap. I kept my offer at $55k but I'm sure the homeowners will decline. This is not a bank owned property. The RE agent needs to re-think his list price!
I had an offer on an REO duplex a while ago that needed a lot of work and had water damage. The bank declined over and over. I just got a note from my realtor saying they will accept my offer now. It's my turn to now say - "Declined"! I don't know what I would pay for it but it certainly wouldn't be $55k! We've had terrible rain the past week and the basement in this property probably has water to the ceiling. Not to mention the water damage in both units.
I had to re-schedule my appointment for tonight with the pre-foreclosure guy. I forgot it was my daughters birthday. How bad a mother am I?!?! We're rescheduling for next week Wednesday at 5pm. Just throwing that in in case I forget the time : )
I have not contacted First Horizon regarding the SS I needed an answer on by Friday, June 6th. The buyer wants me to keep trying but I thought I would lay off for a week and see if they (FH) got back to me. By the way, I did add him to my buyers list. He's buying up properties for rentals so I hope I can find him something soon!
Gotta run...
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