[jlspeed29]

make sure when you are in the buying process to check comparable home sales and use them as a bargaining tool..
and too, the appraisal when it comes it may be your best friend

a lot of realtors will try to 'scare' you into buying a home and offering the most you can....

i know a lot of high school dropouts that are now realtors....worries me man

[persian54]

Originally Posted by ellipsis212

buying a home with cash is extremely rare.

but still, bringing a suitcase full of $100's to each appt lets them know you are serious. what lets them know that you are even more serious is that you have cutouts in the bricks of hondos for 2 platinum-plated Desert Eagles with your name engraved in them.

this will buy you some negotiating power.

Lol

From my experience, it's best to deal directly with the selling agent for an REO

The agent will get double the commission, so s/he is more willing to push your offer through

In the past, I've had agents 'forget' to submit a higher offer since with my offer, she would make much more money than the other offer.

This will only work if the agent is experienced and doesn't mind the risks.
Usually helps if they're Persian or Armenian.. at least here in LA.

I just put an offer in for some land with the selling agent and she specifically told me what other offers she had. Listing was at 80k, valued at 130k, i offered them a nice lowball at 45k and she's pushed it through.

Go to Open houses and meet with the agents directly

Or, if you have a friend who has access to MLS, you will be able to get all the information you need.

Good luck

but don't try renting out the other 4 rooms... not a good idea

i wish we could get a 5 BR 3k sq ft house here for 200k.. that will cost you 700-1mil+ over here..

[O-cha]

Rental income is taxed, so no you wont be making a profit, you'll be covering your mortgage.

Also keep in mind there are numerous laws that your house ISN'T going to meet to be able to legally rent.

I have a 3200sqft house with 3 bedrooms, I can't imagine how small the bedrooms are @5.

[persian54]

Originally Posted by O-cha

Rental income is taxed, so no you wont be making a profit, you'll be covering your mortgage.

Also keep in mind there are numerous laws that your house ISN'T going to meet to be able to legally rent.

I have a 3200sqft house with 3 bedrooms, I can't imagine how small the bedrooms are @5.

usually when you rent a room, it's done as cash.

Also, 5 BR in 3k is normal, at least over here.

And it's not all too bad. It really depends on the layout of the house

[Sniz]

Originally Posted by persian54

Lol

From my experience, it's best to deal directly with the selling agent for an REO

The agent will get double the commission, so s/he is more willing to push your offer through

In the past, I've had agents 'forget' to submit a higher offer since with my offer, she would make much more money than the other offer.

This will only work if the agent is experienced and doesn't mind the risks.
Usually helps if they're Persian or Armenian.. at least here in LA.

I just put an offer in for some land with the selling agent and she specifically told me what other offers she had. Listing was at 80k, valued at 130k, i offered them a nice lowball at 45k and she's pushed it through.

Go to Open houses and meet with the agents directly

Or, if you have a friend who has access to MLS, you will be able to get all the information you need.

Good luck

but don't try renting out the other 4 rooms... not a good idea

i wish we could get a 5 BR 3k sq ft house here for 200k.. that will cost you 700-1mil+ over here..

Originally Posted by persian54

usually when you rent a room, it's done as cash.

Also, 5 BR in 3k is normal, at least over here.

And it's not all too bad. It really depends on the layout of the house

and you wonder why Persian people catch a bad rap lol.

just sayin

[Freakazoid]

Originally Posted by persian54

usually when you rent a room, it's done as cash.

Also, 5 BR in 3k is normal, at least over here.

And it's not all too bad. It really depends on the layout of the house

and all you need is that one cash payer to put it on their taxes.... relying on that for all 4 renters is iffy

[Sniz]

Originally Posted by NBRider88

LOLWUT? I hope this whole post was a joke....



Very true, banking is a real pain...and getting a loan through is hard right now. People with great credit, equity, and good income still have to jump through hoops to get a loan. It sucks. But I don't agree with you on the part about using a bank over a broker. Brokers still have access to the best rates available.... 90% of the time, you are going to get a better deal. The times when Brokers rape you have passed...more than 80% of them have already left the industry leaving only the the shops who know how to do loans correctly and fair.

A lot of bad brokers are now out of the game I'll agree, but not all. In general you'll have a safer transaction dealing directly with a bank but especially if those banks have deals to broker with other banks you can receive great products and have a safer transaction. Kind of like a broker but not really. Truth of the matter is though, there are no 100% deals until the money has changed hands. Its that volatile right now.

Originally Posted by MisterSkiMask

I don't understand the 'lowball' thing, its all about market value. The seller may feel that its a lowball, but a reasonable offer is a reasonable offer (maybe a little low so you can negotiate to market value).

My father-in-law came with my wife and I to look at some properties with us (considering a second home), and he kept say well you've gotta' off xx% less then they are asking. Of course I said well you could still be offering way more or less than market value, what they are asking really means nothing if they really want to sell.

Lowballing = making an offer based off of 0 historical sales data.

ex. - ummmmmmm lets offer them 80k, if they bite then i'll buy it (house would appraise at 180k easily). I've seen that crap, told the buyer to take a hike and find another agent that enjoys wasting his/her time.

As a listing agent it really is not cool, pisses your sellers off and makes you look bad. Hell the worst are the sleezy investment companies that fax you over 'cash offers' or 'letters of intent' based off no data. I still have to present them ethically to the seller which will normally result in a pissed off client even when they know its not your fault.

vultures

[persian54]

Originally Posted by Sniz

and you wonder why Persian people catch a bad rap lol.

just sayin

I don't see why you say it's a bad rep. Doing whatever it takes get the best deal out there.

And it's not limited to Persians either; Jews do quite a lot of shady business as well, sometimes worse than Persians/Armenians combined.
As do many Russians.
From my personal experience, the Persians tend to be more mild and subtle when compared to Russians

I know some white Jews who are more shady than I could even fathom.

[Sniz]

Originally Posted by Freakazoid

and all you need is that one cash payer to put it on their taxes.... relying on that for all 4 renters is iffy

its cool, he will probably rent to other Persians, they all know the drill.

[Sniz]

Originally Posted by persian54

I don't see why you say it's a bad rep. Doing whatever it takes get the best deal out there.

And it's not limited to Persians either; Jews do quite a lot of shady business as well, sometimes worse than Persians/Armenians combined.
As do many Russians.
From my personal experience, the Persians tend to be more mild and subtle when compared to Russians

I know some white Jews who are more shady than I could even fathom.

oh I know it man, the thing is it happens most in the middle eastern community I have found in my experience. Always up to something. Part of the culture.

[persian54]

Originally Posted by Freakazoid

and all you need is that one cash payer to put it on their taxes.... relying on that for all 4 renters is iffy

Hence why I said it's a bad idea

[Sniz]

Originally Posted by persian54

Hence why I said it's a bad idea

yes it is. Rent to one person, probably will be ok.

4, probably will kill each other.

best of luck OP.

[persian54]

Originally Posted by Sniz

yes it is. Rent to one person, probably will be ok.

4, probably will kill each other.

best of luck OP.

or destroy the house

[Bobble]

Originally Posted by persian54

From my personal experience, the Persians tend to be more mild and subtle when compared to Russians.

Pretty accurate by my experience. Flipped a house in Encino a few years ago. Had these Russian "gentlemen" interested but they sent their representative who basically tried to strong arm the deal. Luckily I worked with a Russian guy who did my negotiations with them. Looking back it was comical sitting there watching everybody seemingly yell at each other for hours. End result sold for asking price to them.

[persian54]

Originally Posted by Bobble

Pretty accurate by my experience. Flipped a house in Encino a few years ago. Had these Russian "gentlemen" interested but they sent their representative who basically tried to strong arm the deal. Luckily I worked with a Russian guy who did my negotiations with them. Looking back it was comical sitting there watching everybody seemingly yell at each other for hours. End result sold for asking price to them.

I work with Russians, Armenians, and Russian Armenians, and they are all shady.... but he it brings in $$.

I don't ask too many questions if I don't need to

[O-cha]

Originally Posted by persian54

usually when you rent a room, it's done as cash.

Doesn't make it legal. With no lease in place they can fuck your house up and not have to be obligated to pay a dime. And no matter how much of a security deposit you get, they can do ten fold that in damage.

Additionally if the city or IRS found out you would be up shit creek.

Likelihood? Not too large. Risk? Huge.

[persian54]

Originally Posted by O-cha

Doesn't make it legal. With no lease in place they can fuck your house up and not have to be obligated to pay a dime. And no matter how much of a security deposit you get, they can do ten fold that in damage.

Additionally if the city or IRS found out you would be up shit creek.

Likelihood? Not too large. Risk? Huge.

I know where you're coming from.

But then I guess all those who rent near CSUN should tear up the place and not care?
As I know many students who are sharing a room in a house around the school and they have only paid 1 months rent up front as a SD and they didn't sign a lease.
Not saying it's legal or "ok"

Personally, I do as many transactions as possible through cash so I don't need to make a record of it. To each his own.

[NBRider88]

Originally Posted by Sniz

A lot of bad brokers are now out of the game I'll agree, but not all. In general you'll have a safer transaction dealing directly with a bank but especially if those banks have deals to broker with other banks you can receive great products and have a safer transaction. Kind of like a broker but not really.

I'm going to disagree with that. 100% Don't think because they are "banks" they are not shady or as shady as brokers have been. They are less regulated than brokers, and don't have to disclosure everything on paper either...such as SRP to the borrower.

Pro's of a broker:

-Way faster closing times
-Better wholesale rates
-100% disclosure (now due to regulation changes)
-Can shop your loan around for best rate/cost (Any rebate lender pays goes to borrower now, so it's cheap/cheaper a lot of times)
-Do not have 1 size fits all programs. They get the deal closed and overcome obstacles. I.E. You go to bofa, submit loan, get rejected over some minor issue. Broker can switch lenders and find one that will close your deal for you, or be able to show compensating factors to get it closed.

"So the moral of the story is, the bank is not offering a better deal. Find an ethical mortgage broker and keep him or her for life. You will not regret it. "

[Sniz]

Originally Posted by NBRider88

I'm going to disagree with that. 100% Don't think because they are "banks" they are not shady or as shady as brokers have been. They are less regulated than brokers, and don't have to disclosure everything on paper either...such as SRP to the borrower.

Pro's of a broker:

-Way faster closing times
-Better wholesale rates
-100% disclosure (now due to regulation changes)
-Can shop your loan around for best rate/cost (Any rebate lender pays goes to borrower now, so it's cheap/cheaper a lot of times)
-Do not have 1 size fits all programs. They get the deal closed and overcome obstacles. I.E. You go to bofa, submit loan, get rejected over some minor issue. Broker can switch lenders and find one that will close your deal for you, or be able to show compensating factors to get it closed.

"So the moral of the story is, the bank is not offering a better deal. Find an ethical mortgage broker and keep him or her for life. You will not regret it. "

and that is huge, I still have a bad taste in my mouth from the 'old' days

[NBRider88]

^^ many still do... but I feel for the most part, it's actually gone. brokers really can't screw over a borrower anymore with fee's or rates, even the commission is regulated to were you really cant make that much and any YSP is credited towards borrower. they tightened up requirements as well if you want to sell/broker loans you must take additional courses to stay licensed. imo they have over-regulated this profession. to do loans as a broker it's more of a headache and you have to babysit each loan with decreased pay...as well as a general pain for the qualified borrower to get it closed.

[Pinarello Rider]

Let's not forget the role the banking and mortgage industry played in the financial collapse.

And yes, borrowers were part of the problem too. But dealing with a bank ain't no guarantee. And now that I mention it, the only certainties in life are death and taxes...

Originally Posted by NBRider88

^^ many still do... but I feel for the most part, it's actually gone. brokers really can't screw over a borrower anymore with fee's or rates, even the commission is regulated to were you really cant make that much and any YSP is credited towards borrower. they tightened up requirements as well if you want to sell/broker loans you must take additional courses to stay licensed. imo they have over-regulated this profession. to do loans as a broker it's more of a headache and you have to babysit each loan with decreased pay...as well as a general pain for the qualified borrower to get it closed.

[carogers86]

2 out of the four renters are people I know. My best friend since pre school and his gf want to rent out a room. They even mentioned paying double the rent pending my best friend gets this new job so he can have an office and his own bathroom.

The other renter will be my gf's cousin. She is really mellow. I am trying to get one more friend in. That would be ideal. The house has a 3 car garage and the driveway is wide enough for 4 cars. Pretty sure everyone will have a spot.

Before considering buying this house I had to exercise EXTREME financial discipline to pay off huge credit card debt (totally crazy story) and work hard enough to afford double the house payment in a worst case scenario. Even if my renters flake out, I have enough to comfortably pay the bills.

I live in an apartment complex that seems to get crappier by the week (think gardnersn using leaf blowers in a covered parking lot and blowing s rock into your windshield) and costs $1000 a month. To give up some personal space to have a $0 a month housing expense...... I can start modding my car like MAD.