I had high hopes for the end of this year that I see now will probably not unfold like I had wished/planned. I think I had too much faith in the fact that my postcard/bandit sign marketing would bring bringing me in a deal every 2-3 months, which was way off the mark. After several months of very few calls and no deals on my postcard marketing, I decided to put it to rest. Perhaps three months was premature, but getting only a handful of calls (and no deals) was truly disappointing. I actually got better results from my bandit signs, but I admit I have been lax on that particular marketing strategy. I decided yesterday to revisit the bandit signs, so I put several up last night. I figure if they manage to stay up for any length of time, my best bet of getting calls will be in the next few days. We'll see.
In parallel, I've also decided to do something I swore I wouldn't do again (actually, I swore twice before): buy HUD foreclosures. As much as they are a pain, it is still an easy way to pick up 1-3 houses a year. Each house will be analyzed on an individual basis, but I'm thinking more along the lines of buying, fixing, and then selling them to build up my cash reserves. I found out with House #1 how easy it is to be "property rich - cash poor". In acquiring House #1, we managed to let our CC debt blossom to a point where it is affecting our DTI. I got in touch with a HML, who can get me fast cash for purchases, but in a lot of instances, I'll still need to pony up 5-10% for the difference (and closing costs). Plus, it may be more advantageous for me to go the conventional financing route to save a few $$$'s in the long run.
I also have some criteria I've worked over the past year or so for the HUD's. Some of the criteria a lot of people would question, I'm sure, but it fits my personal needs for the moment. Stuff like:
* Age: built in 2000 or newer.
* Repairs: only soft cosmetics (<$2k).
* Offer: <80%FMV (<75%FMV if I can).
* Offer: <$120,000, unless I can make >$20k net profit.
* and so on ...
Also, while I said my wife and I were dead-set on selling both House #1 and House #2 via a RE agent, we are considering selling it ourselves and/or doing owner financing. I am going to put an ad on CraigsList for House #1 soon and see how much response it generates.
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2 comments:
Skip the HUD and go back to the pre-foreclosure. I am waiting a few months and then planning to work directly with loss-mitigation departments as a source of property.
BN
4MySales.com
I really wish I could get traction in pre-foreclosures, but my marketing has gotten dismal response. What I'm lacking these days is time, which is required for preforeclosures. I'll still be active doing them, but not sure of the extent of attention I can give them right now.
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