New To This.... What Order Should I Do This In?
My partner and I have t have decided to try our luck at real estate. Neither of us knows anything about this field, in fact we are both in law enforcement so we are clueless! Can anyone advise what order to start.... what I mean is do we find investors first and then find a house? Or should we find the house, do all the research and then find an investor? I am sure this will get easier as we learn, but right now I am completely lost!
Sorry, as I said I am new to this. We want to find houses preforclosure, do all the research on any hiddens fees owed, contact the owner to set up a sale and then get an investor to buy the property. We want the investor to pay us a finders fee.
With what I suggested you avoid any appearance of brokering since you are taking title to the property while you rehab it. You can certainly advertise to sell your own property.
In this regards, without having to purchase a property, is it still possible to find an investor that wants to work with you?
I have done multiples before. I even did two on the same day with the same lender financing my purchases.
It is possible as long as you have the cash on hand to close both properties and meet the loan qualifying criteria.
Generally you will sign some boilerplate at closing stating that nothing has changed in your financials since your application. If you have just received a large loan, this would not be the case when you went to close the second loan.
Chris
As a general rule, lenders pull your credit again just before the settlement package is put together. If there are any significant changes in your credit report, they will hold up funding your loan until fully resolved.
If you are using a different lender for a second loan, they will see the activity from the first lender in the inquiries section. The second lender may even see the new loan on your credit report. The lender will rerun your numbers to determine whether you still qualify for the loan and loan program you applied for.
I believe the first key to sucsessful Real Estate Investing is to "Never Lose Money". My first property I bought 3 years ago has a small negative cash flow, but the tax write off covers that. If it was losing money every month, I would dump it.
Its like people in the stock market watching thier stocks dive and they keep saying "If I hold on long enough, it will go back up". But even if it does, you will be lucky to break even any time soon.
I would use any funds you have now to buy below market and fix up and sell or fix up and hold. In ten years you could make a lot of gains as opposed to waiting 10 years for this property to generate cash.
Ddaily
Depending on your bank(s) I would ask that the terms of the SS be that it be reported as "FULL PAYOFF".
Plus i would put a SS for 35-45% of the current MV that way you buy more time and have plenty of room to negotiate... in the mean time find a buyer..
"IMPORTANT" meet the bpo and make sure he comes in where you want him to.. [ Edited by LOSSMITCRUSHER on Date 04/02/2008 ]
You do not have to be behind on payments in order to perform a short sale you just need someone skilled in the negotiation process as Florida is littered with many of the same scenarios. It is a little involved but well worth having a professional do the negotiation for you (not the real estate agent).
FMV means Fair Market Value. FMV is what the property could sell for at an arms length transaction. "Paid in Full for less than full" means that the lender will not issue a deficiency judgment for their loss.
There is a lot to consider. As an investor, you could skip the deficiency judgment, but you will get a 1099 for the taxes.
Have you tried a deed in lieu of foreclosure. Contact your lender.
For most any negotiations with the lender to be successful, you will probably have to either be late, or stop paying and get late. Your credit will take a hit. Only you can decide how much your credit is worth.
I perform short sells in the central FL area. Contact me if you want more information. bgrossnickle bellsouth net
Quote:
"IMPORTANT" meet the bpo and make sure he comes in where you want him to..
Seriously, do people really do this? If I ever showed up to do an interior BPO and the owner pulled some crap like that I would probably intentionally blow their number up for using a seminar gimmick.
On the other hand, I guess there are some agents out there that actually fall for this crap so it might be worth your time.
[ Edited by bgrossnickle on Date 04/03/2008 ]
Quote:
On 2008-04-05 13:35, ITBInvestor wrote:
Until recently, if it were a short sale you had to pay the IRS tax (as ordinary income) on the amount you were short on a mortgage.
Those recent changes you refer to only apply to owner occupied primary residences. anim890066 will still have to pay taxes on the forgiven debt. Nothing has changed in this regard for investors.