Well, it looks like I'm doing exactly what I didn't want to do when I got the ball rolling with REI - putting the business on hold. I have a property on contract that at best won't get sold until early May. Everything else I'm seeing that looks enticing is on the HUD foreclosure market right now, and that requires another $1,000 cashier's check. It's not that I don't have the money to foot another cashier's check, my problem is my wife is getting cold feet about this whole business now. she wants me to wait until I get this property sold until I start forking over more upfront cash for another property. I understand her uneasiness about doing this, but this means my business is now put on pause until early May, at best.
While thinking about my options, I realized that I'm not really in a bind - I just haven't explored other options like w/s flipping, sub2's, and the like that may not require a lot of upfront capital. In doing this, I still would need to spend upfront money on marketing, but it would probably be well below the $1,000 that HUD requires in order to submit an offer. I figure good biz cards, 100 bandit signs, stakes, and a 4-week listing in a free publication will cost roughly $400. I'm sure I could get the wife to bend a little at that price (I hope). :-/
In the meantime, if there are any Austin/Round Rock area investors who would like some leads on several HUD properties (including comps and other complete research I've done on each), please contact me and we can work out a deal.
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2 comments:
Are you sure you NEED to have a cashier's check with each HUD bid? I haven't bid on any HUD properties, but I have bid on VA properties. They also want an earnest money check (not necessarily a cashier's check) with the bid, but all I did was write one, then faxed a copy of it in with my offer. One check for multiple offers. If one got accepted, I'd then deliver the check to the listing agent.
Thanks Shaun!
You're absolutely correct (I don't need a seperate check for each offer - just a copy). Unfortunately, the property I have under contract was a HUD, and they have my cashier's check now. In order to bid on another HUD, I need ANOTHER cashier's check or money order (well, a copy of one anyway). This is the delimma I'm in now. My wife doesn't want me to draw out another $1k for a cashier's check, period. I suppose I COULD draw the money out, give a copy of it to my agent, and then redeposit it. Of course, if I get another accepted, I'll have to then draw out the money again for good (which leads me back to square one). :-(
Two of the best possible properties I've found now aren't open for investor bidding until next Monday, so I still have a little time. Perhaps I can convince her that since these will have low offer prices (<$60k each), I won't be out-of-pocket that much even if I win.
The next barrier I have is getting the financing IF I do in fact win the bid(s). I'm stretching my conventional financing limit right now, but I could probably find a HML/PML that could finance any secondary deals.
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