Comments for Investment Property Expert http://www.minnesotainvestmentrealestate.com How to find, buy, and own investment property. Wed, 22 Feb 2012 17:59:26 +0000 hourly 1 http://wordpress.org/?v=3.3.1 Comment on Low Ball Offers on Bank Owned Foreclosure Properties by Scott Ficek http://www.minnesotainvestmentrealestate.com/buying-property/low-ball-offers-on-bank-owned-foreclosure-properties/comment-page-2/#comment-2652 Scott Ficek Wed, 22 Feb 2012 17:59:26 +0000 http://www.minnesotainvestmentrealestate.com/buying-property/low-ball-offers-on-bank-owned-foreclosure-properties/#comment-2652 Yes. I suspect a $115k offer would be rejected. 203k loans are fine. Banks don't mind them (it is the agents that hate them as they take too long and can blow up and not close). Yes. I suspect a $115k offer would be rejected. 203k loans are fine. Banks don’t mind them (it is the agents that hate them as they take too long and can blow up and not close).

]]> Comment on Low Ball Offers on Bank Owned Foreclosure Properties by Scott Ficek http://www.minnesotainvestmentrealestate.com/buying-property/low-ball-offers-on-bank-owned-foreclosure-properties/comment-page-2/#comment-2651 Scott Ficek Wed, 22 Feb 2012 17:56:20 +0000 http://www.minnesotainvestmentrealestate.com/buying-property/low-ball-offers-on-bank-owned-foreclosure-properties/#comment-2651 With no flooring, you may not be able to get financing. Check with your mortgage person first. $410 is low, but have your agent talk to the listing agent. If there is no showings, the bank may be willing to at least negotiate. With no flooring, you may not be able to get financing. Check with your mortgage person first.

$410 is low, but have your agent talk to the listing agent. If there is no showings, the bank may be willing to at least negotiate.

]]> Comment on Low Ball Offers on Bank Owned Foreclosure Properties by Scott Ficek http://www.minnesotainvestmentrealestate.com/buying-property/low-ball-offers-on-bank-owned-foreclosure-properties/comment-page-2/#comment-2650 Scott Ficek Wed, 22 Feb 2012 17:54:16 +0000 http://www.minnesotainvestmentrealestate.com/buying-property/low-ball-offers-on-bank-owned-foreclosure-properties/#comment-2650 That really isn't long enough to make a low ball offer. Wait till it gets close to $275 and then offer $260. That really isn’t long enough to make a low ball offer. Wait till it gets close to $275 and then offer $260.

]]> Comment on Low Ball Offers on Bank Owned Foreclosure Properties by Ashley http://www.minnesotainvestmentrealestate.com/buying-property/low-ball-offers-on-bank-owned-foreclosure-properties/comment-page-2/#comment-2649 Ashley Sat, 18 Feb 2012 15:56:07 +0000 http://www.minnesotainvestmentrealestate.com/buying-property/low-ball-offers-on-bank-owned-foreclosure-properties/#comment-2649 We are looking at a foreclosure listed at $309. It has been on the market about 40 days and has dropped $20k in this time period. What do you think is a reasonable offer? We were hoping to get down to $260. We are looking at a foreclosure listed at $309. It has been on the market about 40 days and has dropped $20k in this time period. What do you think is a reasonable offer? We were hoping to get down to $260.

]]> Comment on Low Ball Offers on Bank Owned Foreclosure Properties by MatthewJ32 http://www.minnesotainvestmentrealestate.com/buying-property/low-ball-offers-on-bank-owned-foreclosure-properties/comment-page-2/#comment-2648 MatthewJ32 Sat, 18 Feb 2012 02:43:04 +0000 http://www.minnesotainvestmentrealestate.com/buying-property/low-ball-offers-on-bank-owned-foreclosure-properties/#comment-2648 My wife and I just found a foreclosure property in Philadelphia that has been on the market for about a year now. It started at $499k and on Jan 21, 2012, they dropped to $485k. There is a patio that needs to be fenced in (faces street) and no flooring in any bedrooms, but finished everywhere else. My wife and I were thinking about offering $410 with $10k seller assist for it. What do you think of that offer? Thanks in advance. My wife and I just found a foreclosure property in Philadelphia that has been on the market for about a year now. It started at $499k and on Jan 21, 2012, they dropped to $485k. There is a patio that needs to be fenced in (faces street) and no flooring in any bedrooms, but finished everywhere else. My wife and I were thinking about offering $410 with $10k seller assist for it. What do you think of that offer? Thanks in advance.

]]> Comment on Low Ball Offers on Bank Owned Foreclosure Properties by Jacob http://www.minnesotainvestmentrealestate.com/buying-property/low-ball-offers-on-bank-owned-foreclosure-properties/comment-page-2/#comment-2647 Jacob Sat, 18 Feb 2012 01:55:21 +0000 http://www.minnesotainvestmentrealestate.com/buying-property/low-ball-offers-on-bank-owned-foreclosure-properties/#comment-2647 Hello, we are looking at an REO that's been on the market for just under 6 months. It started at 209, dropped to 205 a month later, dropped to 200 a month later, then dropped to 193 two months after that which is what it's currently listed at. non-foreclosed houses on the street have sold for 350-550 in the last year and there was a foreclosure a few houses down that was actually significantly bigger that sold to a builder for 150. There is significant work that needs done on the property that is stated in the Point of Sale report done by the city. Our situation is one in which we could actually make a cash offer in the 105-130 range but any more than that would require a loan and likely an FHA 203k which I've read banks avoid like the plague. Thoughts on this? Would a cash offer of 115k be rejected outright? Hello, we are looking at an REO that’s been on the market for just under 6 months. It started at 209, dropped to 205 a month later, dropped to 200 a month later, then dropped to 193 two months after that which is what it’s currently listed at. non-foreclosed houses on the street have sold for 350-550 in the last year and there was a foreclosure a few houses down that was actually significantly bigger that sold to a builder for 150. There is significant work that needs done on the property that is stated in the Point of Sale report done by the city. Our situation is one in which we could actually make a cash offer in the 105-130 range but any more than that would require a loan and likely an FHA 203k which I’ve read banks avoid like the plague. Thoughts on this? Would a cash offer of 115k be rejected outright?

]]> Comment on Low Ball Offers on Bank Owned Foreclosure Properties by Scott Ficek http://www.minnesotainvestmentrealestate.com/buying-property/low-ball-offers-on-bank-owned-foreclosure-properties/comment-page-2/#comment-2646 Scott Ficek Fri, 17 Feb 2012 14:21:46 +0000 http://www.minnesotainvestmentrealestate.com/buying-property/low-ball-offers-on-bank-owned-foreclosure-properties/#comment-2646 Yes. That seems like a reasonable offer, but the remediation portion is going to be the sticking point. Much of it depends upon how the remediation language is written and worded. If the bid stays at $83k, that drops the net offer to the bank of $507k, which is quite low. The bank may want to do less work. I think it requires so ground work discussion the situation with the bank prior to writing an offer. If you are in Minnesota and do not have an agent, I am happy to work with you on this and write the offer. Yes. That seems like a reasonable offer, but the remediation portion is going to be the sticking point. Much of it depends upon how the remediation language is written and worded. If the bid stays at $83k, that drops the net offer to the bank of $507k, which is quite low. The bank may want to do less work. I think it requires so ground work discussion the situation with the bank prior to writing an offer.

If you are in Minnesota and do not have an agent, I am happy to work with you on this and write the offer.

]]> Comment on Low Ball Offers on Bank Owned Foreclosure Properties by Stephan http://www.minnesotainvestmentrealestate.com/buying-property/low-ball-offers-on-bank-owned-foreclosure-properties/comment-page-2/#comment-2645 Stephan Fri, 17 Feb 2012 06:38:55 +0000 http://www.minnesotainvestmentrealestate.com/buying-property/low-ball-offers-on-bank-owned-foreclosure-properties/#comment-2645 Hi there, We have our eye on an REO that's been on the market for 8.5 months. They first started out asking $680K for the house. Along with multiple price drops during this time, their asking price is now $599K. The home is ~7000 sq ft and has black mold in the basement. I've had a remediation company write me an estimate for remediation and build back that all came to a total of $83K. The seller stated they'd be willing to remediate, but the extent of this statement is unknown. They have had no substantial offers this whole time. We're about to offer $590K with 3% closing help and full remediation. How do you feel about this scenario? Do you think the bank will counter and try to negotiate? Thanks for your input. Hi there,

We have our eye on an REO that’s been on the market for 8.5 months.

They first started out asking $680K for the house. Along with multiple price drops during this time, their asking price is now $599K.

The home is ~7000 sq ft and has black mold in the basement. I’ve had a remediation company write me an estimate for remediation and build back that all came to a total of $83K. The seller stated they’d be willing to remediate, but the extent of this statement is unknown.

They have had no substantial offers this whole time.

We’re about to offer $590K with 3% closing help and full remediation.

How do you feel about this scenario? Do you think the bank will counter and try to negotiate? Thanks for your input.

]]> Comment on The Best Investment Property Holding Entity is the LLC by Scott Ficek http://www.minnesotainvestmentrealestate.com/owning-property/investment-property-llc/comment-page-1/#comment-2643 Scott Ficek Thu, 09 Feb 2012 03:29:22 +0000 http://www.minnesotainvestmentrealestate.com/owning-property/investment-property-llc/#comment-2643 That is really a question for an attorney, but I will tell you that we have gotten away from deeding them into our LLCs. That is really a question for an attorney, but I will tell you that we have gotten away from deeding them into our LLCs.

]]> Comment on The Best Investment Property Holding Entity is the LLC by 09202010hsd http://www.minnesotainvestmentrealestate.com/owning-property/investment-property-llc/comment-page-1/#comment-2642 09202010hsd Wed, 08 Feb 2012 20:52:33 +0000 http://www.minnesotainvestmentrealestate.com/owning-property/investment-property-llc/#comment-2642 I just started an LLC for my two rental properties (one is a vacation rental and one is a long term lease) which both run at a loss. So I started the LLC to protect my personal assests and tax purposes. I have a business account that I run all of my mortgage payments and expenses along with all rental income; do I really need to deed the properties to my LLC? If I keep them as a personal assest and not of the assests of the LLC does that protect them from liens and litigations? I just started an LLC for my two rental properties (one is a vacation rental and one is a long term lease) which both run at a loss. So I started the LLC to protect my personal assests and tax purposes. I have a business account that I run all of my mortgage payments and expenses along with all rental income; do I really need to deed the properties to my LLC? If I keep them as a personal assest and not of the assests of the LLC does that protect them from liens and litigations?

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