VA Property
I am looking for any help you all can give me....I am looking at my fist potential rehab. It is a VA property. Asking price is 64900. I had 2 contactors visit the property yesterday and they both estimate about 25K in repairs. Most of this work can be done by a handyman so I am thinking it will end up costing less than 25K to do if I skip the contractor and use the handymen. FMV is approx. $115000.
Any help on what to bid and insight on VA properties would be greatly appreciated. Also, my plan is to rehab and sell upon completing rehab.
Thanks a lot,
WR
I'm still fairly new to this, but I have done one VA rehab project so far. Regarding the offer price, if your goal is to rehab the property and sell it (flip), make sure you get a good idea of the fair market value, subtract your rehab and financing costs, along with your desired profit and the result will be what you should offer. My experience was that you only get one chance to bid with the VA. There was no negotiation.
Thank you so much! You are correct that you only get to bid once. That's the tough part about it! Your advice was what I was planning to do so thank you for reinforcing it for me. Did your VA project go well?
Thanks again!
Did you find a realtor to place your bid?
Are they knowledgable per VA bids?
Do you know about the VA foreclosure site w/listings?
Is the property 'available to all' or is it in a limited bidding stage?
hi!
yes, I have a realtor placing the bid. It is listed on the VA foreclosure site. The simultaneous offering period ends 11/7 and at that point the bids will be reviewed and a decision will be made on who gets the property.
Ahhh, so bid what you are willing to pay. I thought their props. were only available to 'owner/occupied' during the initial bidding period. No? Better check.
I bought a VA foreclosure in 2002, but it had sat out there for months past the bid process, so I could keep placing bids and see other bids on the site. Also, it was available to investors.
Glad to help. My VA project went really well. I ended up spending about $10k on rennovations, then listed it with a realtor I trust to re-sell it. It took about 60 days from purchase to sell and I was able to net about $12k profit. I'll do deals like that all day long if only I could find them.
Quote:
On 2004-11-03 13:17, wenray01 wrote:
Thank you so much! You are correct that you only get to bid once. That's the tough part about it! Your advice was what I was planning to do so thank you for reinforcing it for me. Did your VA project go well?
Thanks again!
I know that HUD does their forclosures this way (offered to owner/occupant first). I don't know that this is the case with VA though. I would recommend though that you work with a Realtor that has some experience with VA bidding.
Quote:
On 2004-11-03 13:55, ceinvests wrote:
I thought their props. were only available to 'owner/occupied' during the initial bidding period. No? Better check.
wenray,
why are bidding through an agent ??? if you dont have to dont. all you are doing is lowering the total amount of money the VA gets by making the VA pay comission. Is VA listing the property themselves or through an agent ? if they are using an a real estate agency then find out who and deal with them directly and make sure you wait until the last day to bid. (early bids have a funny way of being just barely out bid later on) Let me know ?
my agent found this property and she has been helping me look for a property for a LONG time. I don't want to be a jerk and leave her out the picture and go directly through the listing agent. Just doesn't seem right to me.
wenray,
Totally understood. So tell your agent your putting in an offer on your own and if you get the property you'll kick her back some cash. (I'm telling you, your not going to win any bids by not going directly to the selling agent) Just be honest with her. Make sure you really poke around with the agents on the bids. By law they are not aloud to tell you but most times you can find a "weak" agent who accidentally hints at where you need to be. Thats why I use to always wait until the last hour to make my bid and I always asked "Is my bid of blank dollars even worth submitting ? I really want this house." It worked about 80% of the time as I was able to purchase about 30 VA homes. Again I wish you luck.
Thank you so much - this is very helpful!
I closed on a VA repo in August...great deal. Realtors get the listing and you have to use a realtor to bid.. You have one shot at it unless they reject all the bids then they reopen it. You don't have to be an owner occupant...that's HUD's nonsense. I missed one last week but probably bid too low on purpose as I really didn't want to have two homes to rehab at once as I did that before and about worked myself to death and it took all the fun out of DIY having a full time job. Your numbers sound great...you may want to offer more than the asking price if your numbers are accurate. I offered more on a HUD and still lost as it seemed we all recognized a steal and we all bid more than asking. I even threw in closing costs. With one shot one kill it makes life interesting. Good Luck!
GREAT! Thank you!
Wow, all kinds of info.
I went to the Ocwen site and did not find anything referencing OO only. I guess I was either wrong or that has changed.
Good luck.
How is this possible deal considered a steal.?
Quote:
On 2004-11-03 17:44, meddac wrote:
I closed on a VA repo in August...great deal. Realtors get the listing and you have to use a realtor to bid.. You have one shot at it unless they reject all the bids then they reopen it. You don't have to be an owner occupant...that's HUD's nonsense. I missed one last week but probably bid too low on purpose as I really didn't want to have two homes to rehab at once as I did that before and about worked myself to death and it took all the fun out of DIY having a full time job. Your numbers sound great...you may want to offer more than the asking price if your numbers are accurate. I offered more on a HUD and still lost as it seemed we all recognized a steal and we all bid more than asking. I even threw in closing costs. With one shot one kill it makes life interesting. Good Luck!