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mhobsche

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Reply with quote  #1 

What do I bring to the partnership?  I have ready access to a decent sized cash reserve ($150k+).  With a few successes under my belt I know I can convince some of my co-workers to jump in the pool as well with similar resources.  "Cash is king" is the mantra for a down market I've heard, so fortunately I'm armed for it.  I am interested in doing flips/wholesaling/easy rehabs and resales to start out with. Would really like to find a mentor who is doing well with REO's and maybe short sales. 

 

I also bring a semi-educated in real estate student.  I've been studying on and off for the last 10 years, but after having missed the boat of San Diego appreciation 2002 to 2005 with investment properties, I'm ready to get in the game and learn to buy right to start with.

 

Anyway, thanks for reading.  Looking forward to meeting you soon.

 

Send me an email if interested.  I just joined the San Diego REA and will be at the next meeting... but why wait!

 

Mark

mark@amps4analysis.com


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Mark Hobscheid
Broker/Owner
CIAS (Certified Investor Agent Specialist)
CDPE (Certified Distressed Property Expert)
RE/MAX Solutions
7835 Highland Village Place
Ste D106
San Diego, CA 92129
858-254-6275 (cell)
858-764-9786 (fax)
Mark.Hobscheid@gmail.com
Cal DRE License # 01835391
rickencin

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Reply with quote  #2 
How about just an idea?  Have you thought about buying heavily discounted 2nds where the 1st Deed of Trust is foreclosing on the property?  Insane? Well, sort of.  Let’s say a $400,000 house has a $288,000 first, and a $77,000 second.  The arrears on the 1st are about $8,000.  The 2nd doesn’t want to bring the 1st current and could be wiped out at auction.  You offer him $10,000 to assign the 2nd to you.  He accepts.  You bring the 1st current and foreclosure from 2nd position.  If someone buys the 2nd at auction for $77,000 plus costs to bring 1st current, you make $67,000.  If not, you own a $400,000 house for $18,000 subject to the $288,000 1st.  Yes, the 1st could call the loan due and you would have to refi it.  He likely isn’t going to foreclose because of the “Due On Sale” clause if you are keeping the 1st current.  Foreclosing is expensive and a hassle.  You sell the house as close to retail as possible and make a profit.  So your cash goes to buying the 2nd, getting current on the 1st, holding costs, foreclosure expenses, fix up and sales costs. 

 

Kurt De Meire goes over this type of transaction in his July, 2006 speech (Foreclosures) to SDCIA available on the Listen to Meetings page.  I tried to follow the example on the tape.  Starts about 23 minutes (actually 29 minutes) into the speech (he also explains how to short sale this property).  He makes that rather startling claim that it doesn’t matter whether the property you want has equity or not.  He backs this up, at least for some cases.  Ward Hanigan also mentions this in his Dec. 2002 speech (Buying Foreclosures) to SDCIA, so it’s been around for a while.  Starts about 9 minutes into that speech.

 

This is definitely a way to use the power of cash. 

 

So your really have to choose properties carefully for likelihood of success (the 2nd has to have legitimate fear of being wiped out) and figure out everything that could possible go wrong.  Make a flow chart.  There is always something that can blow up.

 

Good Luck

 

 


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Rick
Vatt

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Reply with quote  #3 
Rick,
Where do you find notes for sale?

Vatt

mhobsche

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Reply with quote  #4 

Also, new again, so any help with how to register to listen to meetings would be appreciated.  When I click on the registration, I get a page not found message. 

 

As far as buying the seconds, sounds like a great idea.  To Vatt?  I like Realtytrac.com.  You can see all of the pre-foreclosures and other liens, so you could start to find the seconds and see if they will take cash for their note.  Also, Guru Donna Bauer talks about the power of buying the note instead of doing shorts sales... more options.  Any members have her whole note buying guide?  I'm thinking about it from some of the Podcasts I've heard her talk on, but would rather partner on it, or "rent" it from someone who has it and wouldn't mine loaning it out for a while. 

 

PS.  For all of you newbies (like myself), start listening to Podcasts.  There's some great info out there, for free.  Most of the time it is at the 30,000 foot level without the detail to do the deal, and most of the time it is a pitch for boot camps or manuals, but if you're like me, i.e., new, I've learned a bunch about topics I've never heard of, like buying notes, short sales, rehabs tips, etc.

 

-Mark


__________________
Mark Hobscheid
Broker/Owner
CIAS (Certified Investor Agent Specialist)
CDPE (Certified Distressed Property Expert)
RE/MAX Solutions
7835 Highland Village Place
Ste D106
San Diego, CA 92129
858-254-6275 (cell)
858-764-9786 (fax)
Mark.Hobscheid@gmail.com
Cal DRE License # 01835391
rickencin

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Reply with quote  #5 

Quote:
Originally Posted by Vatt
Rick,
Where do you find notes for sale?

Vatt

As you know speakers usually have some product tie in.  Kurt De Meire is owner/founder of CountyRecordsResearch.  Just add the obvious dotcom to the name to get the Internet address.  He encouraged people to call his help number with questions.  The county recorder doesn’t easily give you all the information you would want to be involved with foreclosures.  CountyRecordsResearch works with title companies to package all or most of the information you would want to know.  I think it’s around $100 a month.  Cheap compared to what it would cost you to do it yourself.  Expensive if you never use it. 

 

Again I’m referring to the Kurt De Meire, July, 2006 speech (Foreclosures) to SDCIA available on the Listen to Meetings page.  Title companies have access to lender name.  Title companies are required to inform junior lien holders about foreclosures.  About nine minutes into the speech Kurt mentions the type of people who own seconds.  About twenty nine minutes into the speech he talks about how to get a hold of the second.  I can’t type that fast but the gist of what he says is: Call any title company, ask for customer service, ask them to fax you the Deed of Trust recorded on date, address or parcel number (you should have this information from CountyRecordsResearch).  Ask for assignments, if any. 

 

To discuss mhobsche’s question, I’ve had problems too.  Mostly involving allowing SDCIA's cookie (maybe some firewall stuff as well).  I run into this again and again on other sites.  As a test allow all cookies and turn off your firewall (if you are willing to do this).  A more permanent solution allow cookies only from SDCIA.  I ain’t Leo Leporte.  Here is how it works on my system.  I go into Internet Explorer: Tools, Internet Options, Privacy, Advanced, prompt for cookies.  Then, Internet Explorer: Tools, Internet Options, Privacy, Sites and add (allow) sdcia.com or whatever.  I then go to (restore) ZoneAlarm, Privacy, Cookie Control Site List and add sdcia.com or whatever.  I'm sure this is one of those horrible complicated geek things.

 

Good Luck

 

 


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Rick
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