Foreclosure in Atlanta>Question Details

Shyla Hyde, Both Buyer and Seller in Jamaica Estates, Que...

Hello, I am a new investor who is considering obtaining hard money to purchase and rehab foreclosed properties

Asked by Shyla Hyde, Jamaica Estates, Queens, NY Sat Feb 28, 2009

in Georgia. What is the best marketing strategy to sell the house quickly (given the way the market is right now). If I can't sell, can anyone advise how refinance with a conventional lender without staying in the property for 6 months (I would need to pay the hard money loan back). After refinancing I would rent it. I am also looking for realtors who have a list of approved buyers. Realtors in GA, please email me at sdhrealtor@yahoo.com. Please help someone who is trying to get into this market.

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8
Shyla -

I'd suggest speaking with experienced investors before getting into this at this time as a rookie, you will be eaten up.

Hank
1 vote Thank Flag Link Tue Mar 3, 2009
You are looking for realtors who have a list of approved buyers.. that is funny. Do you think they are sitting around waiting to buy your house? No, we are putting them in homes as fast as we can and we are working as hard as we can to find them the best deals out there. If we have buyers then they've hired us to work for them. It would not be in your best interest to hire an agent with a list of "approved" buyers because that agent will represent the best interests of the buyer and seek to get the buyer the best deal possible from you. Do you want to hire a realtor? You should hire the best one in your are and trust them to get the job done. If you want someone to help you get into this market, then you should hire someone and be loyal to them. In turn, they will be loyal to you and help you make money in this market. If you want to use someone and waste their time, well that's just not right. If you need help them please call me.

Sincerely,
David Brower, Assistant Manager/Realtor
Crye-Leike Realtors
678-982-9600
david@davidwbrower.com
Web Reference: http://www.davidwbrower.com
1 vote Thank Flag Link Sat Feb 28, 2009
That's classified - let's just say it keeps my head from exploding when I see ome of these posts!

Hank
0 votes Thank Flag Link Sun Mar 29, 2009
Hi Shyla,
Good question. It seems you got good answers already. My team and I do exactly this in California. There are several components here. You must first line up pre-approved buyers, if they have bad credit get it fixed, this is what I do for our team. The other component is to arrange private money, add more time on the contract than you think you will need. Then you need to get the contractors who will do the projects on time and on budget you need contracts for this. You need good realtionships with the REO Realtors or the banks directly so you can clear out large amounts of inventory and get a fabulous price on the properties.
Your challenge is going to be that you purchase an REO, that sets a comp how are you going to "add value" to the property quickly in a rehab to get a much larger purchase price than you paid? The new lender is not going to agree with you about the new price because you're beautiful and have a nice smile. You will need a comp that is proof of the value of the property rehabbed.
My team and I do not use hard money because their is no way to confirm that we can get out of the property in 6 to 12 months given unemployment is on the rise and many banks are insolvent and not lending. Therefore, I would also suggest your local REI and see who is doing this in your area successfully and partner with them by adding "value". Perhaps you can get more buyers lined up, perhaps you can get private money, perhaps you have a releationship with a bank and can negotiate REO portolios, or perhaps you can do what I do and offer Credit Repair services for the buyers? Good luck Shyla!
0 votes Thank Flag Link Sun Mar 29, 2009
Hi, Shyla! First, I agree with talking with an investor in that particular market. There are lots of investor groups and that information can/will be the most important. Consider the ability to find good workmen (in GA with you being in NY), and how/who will oversee that. That's an absolute must. If things are still selling there, and prices are not declining, find a realtor in THE town where you are considering buying. Have them do not just a CMA, but an absorption rate study. That will tell you where THAT house in THAT neighborhood has to be priced (and in what condition) to sell in 30 days, 3 months, 6 month, etc. If you don't get enough hard data that makes you feel confident, Talk to a RENTAL agent about the rental market in that town, that neighborhood. Look at the overall health of the economy in that region, too. Then do the math. Be very careful about your loan, though...investor loans are hard to come by these days. Good luck!
0 votes Thank Flag Link Tue Mar 3, 2009
You should join the real estate investor group in your area. They will have years of investing knowledge that they will be willing to pass on to you. If you already own this property you may have to do some real work to contact a lot of small banks that may loan to you probably around 60% of the appraised value. Also check with credit unions. You will also have to have your house the best one in the area and staged. To maximize the number of buyers coming thru you will want to price the house at least 10% below the rest of the comparable homes in the area. I hope that you bought the house right so that this works for you. Always as an investor you should never buy a house including the cost of repairs, holding cost, marketing and sales cost to be less than 70% of the after repair sales price. Good luck/
Roger Smith
0 votes Thank Flag Link Tue Mar 3, 2009
I agree with Hank! Good answer. Then again, I haven't heard a bad one from you yet! Sometimes funny, but never bad. What the heck is that on your head though :-)?
0 votes Thank Flag Link Tue Mar 3, 2009
1) Stage the house and price it 5% below what your CMA recommends. You also need a real estate agent that will aggressively push the prooperty to other offices in the area.
2) You need 25% down, minimum, as an investor. Contact me if you want referral of lenders who may be able to finance.
3) We manage over 120 properties in the "intown" area of Atlanta. If we cannot help you, perhaps we can refer you to someone who works/manages in the area which your property is located.
Take care.

Scott Askew
0 votes Thank Flag Link Sat Feb 28, 2009
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