Investing

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Permalink Reply by Ina on August 1, 2008 at 5:04pm

Thank you. I thought "flipping" was to purchase a property, fix it up and sell it right afterwards for a profit. My husband and I are planning on, I guess, "flipping" the units but keeping the property for a while.

I appreciate your response and look forward to hearing from you and your friend.

Permalink Reply by Ina on August 2, 2008 at 11:36am

Yes, but how do we get good financing for this? Where do we start?

Permalink Reply by Ina on August 2, 2008 at 11:39am

Thank you.
I know my credit score and my husband's and I know we make good candidates, at least according to our own bank.
I am wondering if I made the right choice as far as an agent? She is well experienced and works with a bank on selling their foreclosures. Is that a good thing or not? What kind of agent should I be working with and since we are in the stage of looking for properties, how often should the agent contact us? Only when they find a property for us?

Permalink Reply by HUD Foreclosed on August 7, 2008 at 11:59am

From what you've told me, your agent sounds like she is at least experienced when it comes to foreclosures. That can be a good thing. Unlike other agents, as well, it doesn't seem like this one is trying to pressure you into making a purchase, so that's a good thing as well. However, since you're looking at commercial property, if this agent/agency does not often deal in commercial property, it might not be a good match. You need someone who specializes in that sort of thing. Make sure your agent is also a buyer's agent, not just Joe Schmoe Realtor.

If, however, you feel like your agent isn't meeting your needs, do shop around for another. Keep in mind, also, that since you have not yet been pre-approved for a loan, your agent may not feel you are a "serious buyer," even though your intent is clearly to buy and buy soon. An agent bases his or her income on the buyer, generally, so s/he will probably consider you a "lower priority customer" until you have financing squared away, when compared to however many other financing ready accounts s/he is managing at the moment.

One thing you might do with regards to how often the agent sends you listings is to ask him or her how many real estate transactions they have completed every year, for the last couple of years. If the number is very low, s/he may not be very diligent, or his/her area has been impacted heavily by the economic downturn (You might want to ask for the number of transactions they completed in boom years of 2004 and 2005, as well.). To assuage your concerns about getting a less diligent agent again, should you decide to shop around for a new agent, you can ask agents how often you can expect to be contacted by them and whether or not they plan on taking any vacations in upcoming months. If the agent is hesitant to answer your questions, you might want to try someone else.

Permalink Reply by JOSH on August 1, 2008 at 1:41pm

I am interested in investing in Chicago, have got some finanace from lenders for investment properties, but do do not know which area is excellent for rental, we can help each other, pl contact me ASAP

Permalink Reply by Ina on August 1, 2008 at 5:07pm

Which part of Toronto are you from Josh? I had read on your other post that you are from Toronto.

I'm not sure what exactly you are asking, so could you be more specific?
It sounds like, from your email, that you want to invest in Chicago, have the lenders lined up ready to go but don't know which area is best to invest in?

Thanks, hope to hear from you soon.

Permalink Reply by HUD Foreclosed on August 2, 2008 at 9:31am

It sounds like you two might have something interesting going on here, with regards to finding creative ways to finance and invest in properties. Here's a quick snippet about two of the many creative ways to finance real estate property from HUD Foreclosed's Online Tutorial, Chapter 12, which I felt fit this situation best:

"Partners: By partnering with others, you will no longer be limited to only those properties meeting your individual budget. This provides greater flexibility in identifying the right investment property. Other benefits of partnering include the pooling of expertise and financial backing while enjoying the support of partners who have the same objectives. Completing a successful real estate transaction with partners can be a very exciting and fulfilling experience. The primary downside is that you lose some control and must make decisions jointly. Bottom line…. pick your partners very carefully.

Equity Sharing: For a first-time buyer with limited cash for a down payment, equity sharing can be a great opportunity. The common equity sharing agreement involves one party living in the property and the other partner financing the purchase. Both the occupant and the investor enjoy tax benefits and share the profit. First-time home buyers make great resident partners while family members or real estate investors fill the non-resident partner role.

While there are many benefits to equity sharing, joint ownership can have its challenges. For example, what happens if the resident does not maintain the property or make the mortgage, insurance or property taxes payments? Furthermore, the property may not go up in value, so the investor who put up his credit or cash may not realize any profits. Like any real estate investment, the shared equity arrangement should be approached with profit, not just financing, in mind."

How ever you two decide to manage a shared investment, we wish you the best of luck!

Hud Foreclosed

Permalink Reply by HUD Foreclosed on August 11, 2008 at 2:13pm

Notice: HUD Foreclosed is committed to protecting our users' privacy. As a result, we have removed a reply from JOSH to protect his email address. Ina, please refer to your user inbox for his reply.

Thank you,


HUD Foreclosed