Where do you find "legit" reo property lists?

[sswift]

So Iv'e been researching & reading & all that jazz... and decided to officially begin my search for the almighty "first property" DUN DUN DUNNNNN!

I have no money and am working on improving my credit score now, so I'm in no rush, its gonna take some time to build a decent credit history anyways...

Now,1) I'm doing google search's (REO properties in south FL.) , but a lot of the sites are BS and charge you $7 for a booklet or what have you... Anyone know of a legit site or company?

2) If I find a gem property before my credit score is over 700, and before I save some cash, should I pass on the opprptunity with the mindset "theres always another deal" or should I find a way to make the deal happen?

3) If anyone here is successful in the real estate game in south Fl. you wanna go out to lunch and teach me everything you know?

 

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[NoMoneyDown]

1. World's Largest Free REO Directory

2. You can always use a HML/PML to finance deals.

3. Sorry, I'm in central Texas.

 

[sswift]

maybe I should go back to research... whats an HML/PML- is the only acronym I could find is Probable-Maximum-Loss?

 

[NoMoneyDown]

HML = Hard Money Lender
PML = Private Money Lender

These people generally dont care (too) much about your credit score - they are only interested in the ARV (After Repair Value) of the property.

 

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[sswift]

1. World's Largest Free REO Directory -

most of the links dont work... hmmmmm, old list? some of them do tho, so thanks!... can I just walk into a bank and ask for their list, or does some shmoozing have to take place?

 

[kwerner]

Pretty simple really, get yourself a "buyers agent", tell them you're looking to buy an REO and ask them to email you the listings of REO's & HUD properties as they come available.

You might want to stick within specific neighborhoods or price range - they can tailor the list for you that way as well. But first you have to know what, where, and why you're wanting to buy.

 

[NoMoneyDown]

1. World's Largest Free REO Directory -

most of the links dont work... hmmmmm, old list? some of them do tho, so thanks!... can I just walk into a bank and ask for their list, or does some shmoozing have to take place?

Yes, it's a rather old list, but gives you a start. Most of the bigger banks have a list either buried in their own web site or they post them on a separate site (Wells Fargo comes to mind: link). And, yes, you should be able to walk into a bank and ask for a list (you may have to speak to someone other than a teller).

 

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[JMATH45]

I'm in the process of planning/starting a real estate investment business for flipping REOs.

I've found this website very useful: W W W [dot] mortgagenewsdaily [dot] C O M/wiki/REO_Database_List.asp

Also this list: W W W [dot] biggerpockets [dot] C O M/bank-reo.html

I don't have enough posts to post links, so just type replace the www . and the .com.

Those sites should help out!

 

[sswift]

thanks everyone! I just found a mansion that was built for 4.2 and furnished for 300k. Asking price is 2 and I think I can negotiate down to 1mil. the only problem... this is my first property and I'm scared shitless of all those zeros... what would you do?

 

[Red]

thanks everyone! I just found a mansion that was built for 4.2 and furnished for 300k. Asking price is 2 and I think I can negotiate down to 1mil. the only problem... this is my first property and I'm scared shitless of all those zeros... what would you do?

A few questions for you:


1) At what price are you going to drop the house back on the market? What are you planning to do to the home to justify the new pricing?

2) What percentage of the total market sales in your area is homes in the above price point? (for example, in the Phx metro area, currently 99% of the homes selling are within FHA pricing (under $400K) -homes over a million are waaaay less than 1% of what's selling)

3) Is the home currently listed with an agent on the market? Is it bank owned now? -you may want to consider finding a home to purchase at auction as opposed to the general market

4) What is the current average days on market for homes in the 1M+ category in this area? Out here, in many MANY areas, it's in excess of TWO years. Some areas it's over seven years. Yes, seven.

5) Have you had a title company/lawyer/whatever you use in your neck of the woods run a preliminary title report? Are there any easements that encumber the full usage of the property? Is it in a flood plain? Within the flight path of an air force base? Does it currently conform to all city zoning and planning regulations?


After I know the answers to those questions, I'd be able to answer you question you posed above

 

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[bflash98]

Most lenders have a list of REO properties on their sites. Phxmj put together a list of some of the banks in this thread http://www.thefastlanetomillions.com/real-estate-residential/3335-find-bank-reo.html. Some of those banks don't exist anymore but it will get you started.

 

[JMATH45]

I would imagine financing a million dollar home through a bank in today's market would be incredibly hard to do. However you could get creative and finance the property for the potential home buyer yourself. Hold the deed and have them make payments to you. Just an idea....

 

[sswift]

yep, deal fell through...guy didn't want to budge on price... I was a little in over my head anyways, I realized I was looking for properties instead of looking for motivated sellers. On to the next one...

 

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[hatterasguy]

Unless you have money don't play in the seven figure league. Actualy just stay out of it all together in this economy, you will lose money.


You need to find an affordable price bracket in your area thats selling.

In my area the $300k-$400k range is magic.
The $400k-$500k range is ok
$500k and over is tough.
$1m and over is dead.
$300k and down is a mixed bag.

Find out what your area is doing.

 

[LesG]

HML = Hard Money Lender
PML = Private Money Lender

These people generally dont care (too) much about your credit score - they are only interested in the ARV (After Repair Value) of the property.

HML and PML checking in. Doing this full time. No, I do not ONLY interested at ARV.
Actually, I look at CURRENT RV way before ARV. What if the borrower never fixed up the property. Guess who gets stuck doing the work if they stop paying? I want skin in the game. i.e. 30% down of cash minimum in general.

However, My best deal was a 100% LTV deal at 32 points and 24% interest rate for a 600k 2nd. Made about 200k on that deal in 6 months and put up NO MONEY. Had investors but up all 600k. Why so high on the LTV? Borrower got a great 1st mortgage and my investors could end up having the place on HIS CREDIT with 600k down.

It is true however, that if you have bad credit I would still do the loan for you.
But you have no money! No worries ... get it. Had one guy do that. Would borrower 1st mortgage money from me and then find investors to share the profit.

 

[kurtyordy]

oops read the rest of the posts and realized I dup contented someone else. I am doing penance now.

 

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[LagunaLauren]

However, My best deal was a 100% LTV deal at 32 points and 24% interest rate for a 600k 2nd. Made about 200k on that deal in 6 months and put up NO MONEY.

32 POINTS?? 24% INTEREST? Lol Geeeezusss!! Wow. I think I would personally pass out if someone proposed that financing. Hey , I guess the cost of money doesn't matter if you made 6-figures on it. More power to you for making that work!

 

[Cat Man Du]

HML and PML checking in. Doing this full time. No, I do not ONLY interested at ARV.
Actually, I look at CURRENT RV way before ARV. What if the borrower never fixed up the property. Guess who gets stuck doing the work if they stop paying? I want skin in the game. i.e. 30% down of cash minimum in general.

However, My best deal was a 100% LTV deal at 32 points and 24% interest rate for a 600k 2nd. Made about 200k on that deal in 6 months and put up NO MONEY. Had investors but up all 600k. Why so high on the LTV? Borrower got a great 1st mortgage and my investors could end up having the place on HIS CREDIT with 600k down.

Les................nobody gets 24% + 32 points....nobody. Oh wait a while ...YA did it! Well gooooolie :coffee:

 

[LesG]

32 POINTS?? 24% INTEREST? Lol Geeeezusss!! Wow. I think I would personally pass out if someone proposed that financing. Hey , I guess the cost of money doesn't matter if you made 6-figures on it. More power to you for making that work!

He (borrower) posed a higher rate and term. I lowered it!!!
My investors (lenders) wanted 20%, i offered them 24%!!!

 

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[LesG]

32 point loan on 600k

Les................nobody gets 24% + 32 points....nobody. Oh wait a while ...YA did it! Well gooooolie :coffee:

It's interesting how I can present a deal and make it sound like it's highway robber.
However, what if I presented the deal this way....? Wouldn't you rather be the borrower? Okay maybe not since this was pre-real estate crash.

Borrower finds a deal. Expects to make $1,000,000 profit in it if he had all cash.
He has little CASH. He does have excellent credit and development experience.
Can get a 1.2 million dollar loan and puts up $50,000 already on earnest deposit, surveys, appraisal, etc. Need $600,000 to close the deal. No commercial lender will loan at basically 100% ltv of current market value on this apt (work-live lofts).
But will at 1.2 million at great terms at 6.5% for 5 years 30 year am.
He does not want to share the $1,000,000 profit with partners inspite of our desire to partner with him. So what do you want, MR Stingy? I want a $600,000 HML for 6 months and I'll pay you 100% interest rate APR on it with no payments Yes this is a 2nd mortgage at 100% of LTV! I counter, how about you pay me 12% interest only payments, with deferred 66% for a 6 month balloon and you can not prepay this loan for at least 4 months.

Borrower is condo coverting this apt complex and it will take him 12 months. However, in about 4-6 months can refinance out our 2nd. It's all paperwork and there is little physical construction to do. This is a WORK-LIVE complex not a LIVE-WORK complex. So to condo conversion is much easier as it is in the commercial side of the city planning arena.

Let me ask you how many HML's would do that deal?
We were one of the rare ones that did.
1 million of profit was to be had.
Little construction was needed.
MOstly paperwork with the city.
He's got a great 1st mortgage if he can't payoff the $600k 2nd and we would have a great apt.

He paid us off at the 6 month mark. My effective points that I created was 88-24 = 64 But lasted 6 months, so 64/2 = 32 points paid in 6 months.

Borrower paid us...600k x 88% /2 = $264,000 (/2 since lasted half a year)
My Investors/Lenders got 600 x 24% /2 = 72,000
Les got 264-72=$192,000 for structuring this deal. (works out to be 32 points 192/600)
Investors make 24%. Hence 24% and 32 points loan.
Now I never said this to the borrower. He wanted to pay 100%, and I said 88% is enough with the terms above.

Borrower slated to make 1,000,000 - 264,000 - 100,000 ~ approx 600k in 1 year with no money down.

Will he took too long and the market crashed on him. He got stuck with a lemon 5 years later. But he did have the better deal than I had... INITIALLY.

 

[Cat Man Du]

Re: 32 point loan on 600k

Beautiful