Join Early Retirement Today
Reply
 
Thread Tools Display Modes
I'm new
Old 05-16-2006, 06:22 PM   #1
Dryer sheet wannabe
 
Join Date: May 2006
Posts: 11
I'm new

I'm new to this forum but not to the idea of retiring early.
I currently work with my brother in Detroit investing in pre-foreclosures. I have a plan to retire in 10 years. I have been bummin around this site for a day or two. I'm glad I found it and that there are people to converse with that have the same mental attitude as myself.

Look forward to being part of the community.

BT
bwtucker83 is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Re: I'm new
Old 05-16-2006, 07:04 PM   #2
 
Posts: n/a
Re: I'm new

Welcome to the forum. I don't have a clue about pre-foreclosures, as real estate to me is a place to live!
  Reply With Quote
Re: I'm new
Old 05-16-2006, 09:43 PM   #3
Thinks s/he gets paid by the post
wabmester's Avatar
 
Join Date: Dec 2003
Posts: 4,459
Re: I'm new

BT, there's a thread in the "Other" section about a potential foreclosure. I'm curious about the mechanics of pre-foreclosures. Do you sit down with both the lender and mortgage holder and try to negotiate a settlement in exchange for equity? How much is the bank usually willing to give up to prevent foreclosure, and how much equity is the home owner usually willing to give up in exchange for your services?
wabmester is offline   Reply With Quote
Re: I'm new
Old 05-17-2006, 07:33 AM   #4
Dryer sheet wannabe
 
Join Date: May 2006
Posts: 11
Re: I'm new

Noramally the people we work with are completely maxed out in debt and do not have any equity. We let them know we can buy the house be we will be buying it for less than they owe. We then negotiate with the lending institution to pick the house up for less than what is owed. I would say we usually buy houses at 75% of their market value. We then sale them to other investors who fix them up or keep them as rentals.

If the homeowner has equity they are usually willing to give up all but 2 to 5K of equity to sale the home. We still buy it for less than what is owed.

It all really depends ont he condition of the home.

I hope that answers your questions.

Brad
bwtucker83 is offline   Reply With Quote
Re: I'm new
Old 05-17-2006, 09:30 AM   #5
Thinks s/he gets paid by the post
 
Join Date: Mar 2004
Posts: 3,430
Re: I'm new

Brad,

Where in the Detroit area are you doing the preforeclosures?

I live in the metro area and am thinking about real estate investing.

omni
omni550 is offline   Reply With Quote
Re: I'm new
Old 05-17-2006, 12:34 PM   #6
Thinks s/he gets paid by the post
wabmester's Avatar
 
Join Date: Dec 2003
Posts: 4,459
Re: I'm new

Quote:
Originally Posted by bwtucker83
I would say we usually buy houses at 75% of their market value.
Thanks for the info. That sounds great -- much better than waiting for the home to get to auction. So, are the banks willing to give up 25% of their loan just to short-circuit the foreclosure process? I assume most of these houses have appreciated a bit, so the bank isn't losing that much. How much are the banks willing to lose on their loan, if any?
wabmester is offline   Reply With Quote
Re: I'm new
Old 05-17-2006, 07:22 PM   #7
Dryer sheet wannabe
 
Join Date: May 2006
Posts: 11
Re: I'm new

Omni,


We do houses all over the metrot area.

Wab:

They will take quit the hit if the house needs repairs and is in a poor neigborhood. It really just depends house to house and lender to lender. Once we got a 2nd mortgage reduced to 1K from 150K. That was quite the deal. I'm happy to talk about it if you have more questions.

Brad
bwtucker83 is offline   Reply With Quote
Re: I'm new
Old 05-17-2006, 08:50 PM   #8
Thinks s/he gets paid by the post
 
Join Date: Mar 2004
Posts: 3,430
Re: I'm new

Brad,

Welcome aboard.

You'll find a wealth of information on this boad and some very intelligent posters.

omni
omni550 is offline   Reply With Quote
Re: I'm new
Old 05-17-2006, 09:37 PM   #9
Thinks s/he gets paid by the post
wabmester's Avatar
 
Join Date: Dec 2003
Posts: 4,459
Re: I'm new

Quote:
Originally Posted by bwtucker83
They will take quit the hit if the house needs repairs and is in a poor neigborhood.* It really just depends house to house and lender to lender. Once we got a 2nd mortgage reduced to 1K from 150K. That was quite the deal.
Excellent. Sounds like the banks just make a SWAG to figure what they're willing to walk away from. I love inefficient markets like that. You'll make a killing.
wabmester is offline   Reply With Quote
Re: I'm new
Old 05-17-2006, 09:47 PM   #10
Dryer sheet wannabe
 
Join Date: May 2006
Posts: 11
Re: I'm new

what do you mean by SWAG?

Some lenders will take a set percentage of the appraised value as the short. Banks REALLY don't like having reo's, especially in Detroit.

bwtucker83 is offline   Reply With Quote
Re: I'm new
Old 05-17-2006, 09:50 PM   #11
Thinks s/he gets paid by the post
wabmester's Avatar
 
Join Date: Dec 2003
Posts: 4,459
Re: I'm new

Quote:
Originally Posted by bwtucker83
what do you mean by SWAG?
Sorry, technical engineering term: scientific wild-assed guess.
wabmester is offline   Reply With Quote
Re: I'm new
Old 05-17-2006, 10:04 PM   #12
Full time employment: Posting here.
 
Join Date: Feb 2004
Location: Okanagan Valley
Posts: 808
Re: I'm new

Or "Simple Wild Eyed Guess" depending on just how wild it is.
AltaRed is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


» Quick Links

 
All times are GMT -6. The time now is 11:29 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2024, vBulletin Solutions, Inc.