How Will This Look?
I am new to this site so first I'd like to say Hi to all. I am just starting in real estate investment and I am hoping that I am starting in the right place. I have all ways believed that short sale is the way to go. I just sold my house and now have 120K to play with. I am a general contractor and can do all my own rehabs. My family and I are now living in an apartment building that my wife manages so we pay no monthy rent. I think I am in a good positon to try my hand at short sales. Any thoughts? I know that learning all the specifics is the KEY, so I have purchased a course to study. I have good education with some knowledge of real estate, plus having been remodeling investment properties for other investors for 15 years, I think I can quickly learn the business.
I have two starter questions:
first, I live in the bay area and most of pay off amounts or the BPO's are going to be to high for me to afford a cash deal and I don't want to use a lender. I'm thinking of investing in the central valley (California). I am willing to travel but, is it very hard to do short selling out of my area? I have a young son that would love to drive, get pictures etc. so does this seem feasable?
second, I was wondering if giving my own estimates on required work to decrease the BPO is going to be a conflict of interest that the mitigation officer is going to throw out?
Thanks in advance for any feedback and I look forward to learning from members. HRTZ 
[ Edited by hrtz4mejod on Date 02/15/2004 ]
I would suggest staying in the San Francisco/Oakland area. Find your local REI club there you will meet other investors/hard money lenders who can fund deals. Keep your $120,000.00 as a safety net for cost overruns. How far out is the central valley from your home? I know I do not live in California but it seems the profit margin would be higher in the bay area.
IMHO, its all about leverage..keep your 120G's and negotiate 10 sales as opposed to 1..
regards-pat
Agreed...Keep the 120,000...use for many deals...you're already ahead of most.
I understand keeping the 120k but I do have 50 k in reserve for overruns and I also know that cash is king when doing preforeclosure purchases or short sales. I'm a contractor and that is my thing. Buy, Rehab, Refi and rent or flip and move on. That was the initial plan. Am I on the right track or crazed? Thanks <IMG SRC="images/forum/smilies/icon_rolleyes.gif">
P.S. What about submitting my own bids for BPO devaluation. Is that pointless or conflict of interest. [ Edited by hrtz4mejod on Date 02/15/2004 ]