Go Back  DVD Talk Forum > General Discussions > Other Talk
Reload this Page >

Okay, I might buy this last house, but that's it....

Other Talk "Otterville" plus Religion and Politics

Okay, I might buy this last house, but that's it....

Old 02-28-05, 01:18 PM
  #1  
DVD Talk God
Thread Starter
 
kvrdave's Avatar
 
Join Date: Aug 1999
Location: Pacific NW
Posts: 86,189
Likes: 0
Received 2 Likes on 2 Posts
Okay, I might buy this last house, but that's it....

I'm looking at a HUD REO property. HUD is a real bitch to deal with. They have the crappiest rules, etc. Not worth dealing with. You have to be a registered broker (which I am), but that is the only easy part. I became certified with them for the sole reason of buying property, but never selling it. It is such a poor process that I don't ever want to sell their property. Invariably things go wrong with them and people get frustrated with the process, etc. and who do they blame? The broker, naturally. So I just quit dealing with them. However, as a result of their crappiness, a person can get some good deals on occasion. This is a 3 bed/1.5 bath in an excellent neighborhood for $61,000. Next to the hospital, good view of Mt. Adams, updated windows, etc. Still has baseboard heat, but that is minor. About 1,000 sq. ft. of living space and a 1 car garage.

All bids are considered as "net to HUD" because you have to figure in commission, etc. Anyway, I am trying for $52,500 which would be equivelent to an offer of about $56,000 to them. THis would rent for $600 easy, and maybe more. But this is not a "buy and hold" place. It is a "rent for 2 years, and resell" type. Last sale on this property was around $90,000 and it is in about the same shape as before.

Wish me luck
Old 02-28-05, 01:21 PM
  #2  
DVD Talk Gold Edition
 
Join Date: Jul 2003
Location: Im somewhere where I dont know where I am.
Posts: 2,074
Likes: 0
Received 0 Likes on 0 Posts
dave are you knowledgeable about doing a 1039 like kind exchange. my mom has a property she wants to sell, and use the money to invest in a new property somewhere else without paying the taxes?

How does this work? Have you ever done this, or anyone else on here. id love to hear about it
Old 02-28-05, 01:22 PM
  #3  
Moderator
 
wendersfan's Avatar
 
Join Date: Jun 2002
Location: Nuova Repubblica di SalÚ
Posts: 33,078
Received 38 Likes on 18 Posts
There's nothing quite like state-sponsored capitalism, is there?

Good luck Dave!
Old 02-28-05, 01:23 PM
  #4  
DVD Talk Platinum Edition
 
Join Date: Oct 2000
Location: Fort Collins, CO
Posts: 3,479
Likes: 0
Received 1 Like on 1 Post
Good luck, you obviously have a knack for this sort of thing, I unfortunately do not. Live and learn I guess.
Old 02-28-05, 01:40 PM
  #5  
DVD Talk God
Thread Starter
 
kvrdave's Avatar
 
Join Date: Aug 1999
Location: Pacific NW
Posts: 86,189
Likes: 0
Received 2 Likes on 2 Posts
Originally Posted by skiblet
dave are you knowledgeable about doing a 1039 like kind exchange. my mom has a property she wants to sell, and use the money to invest in a new property somewhere else without paying the taxes?

How does this work? Have you ever done this, or anyone else on here. id love to hear about it

I know enough to get a 1031 exchange "handler". Search google and you will find places that handle this. It usually costs $500 or so and is well worth it. Once you have sold the property (and the proceeds stay with the handler because once you touch them, they tax you), you have about 90 days to identify a property that you will move the money into, then another number of days to close the sale. It is generally easiest to already have a property identified, obviously.

It isn't really difficult, but the downside of screwing it up is huge, so the $500 fee is well worth it.
Old 02-28-05, 02:07 PM
  #6  
DVD Talk Legend
 
Join Date: Jul 2000
Location: Arizona, USA
Posts: 23,458
Likes: 0
Received 0 Likes on 0 Posts
So it sold for 90,000 and now is selling for 56,000? I only hope you know something about the neighborhood that tells you the value will shoot back up. It would be a shame to find out that the house has ghosts or it's built over some radioactive underground river.
Old 02-28-05, 02:13 PM
  #7  
DVD Talk Hero
 
JasonF's Avatar
 
Join Date: Jul 2001
Location: Washington, DC
Posts: 40,214
Received 3 Likes on 3 Posts
Can we start a pool on how long it will be before Dave starts another "I know I said I was never ever going to buy another house, but I'm thinking about buying another house" thread? Put me down for 3 months, 6 days.
Old 02-28-05, 02:29 PM
  #8  
DVD Talk Platinum Edition
 
Join Date: May 2001
Location: In my Home Theater- Foley, AL
Posts: 3,503
Likes: 0
Received 0 Likes on 0 Posts
Dave,

Is it newly offered on the HUD list? They give preference to those buying it for a primary residence. Also, they have a waiting period before it can be offered to investors. You probably already knew this though.

Are you making the bids via the on-line process? I agree that the HUD system is terribly flawed and is a tough cookie to deal with due to all the B.S.. I'm also on the HUD "approved" list of brokers in my area and they can be a bitch to deal with. I have however had some success with calling HUD and speaking to them. You'll have to wade through 40 menus and speak with whoever is in charge of that property. They go by alphabetical from my dealings.

Good luck to you & let us know how it turns out! BTW, if you can buy it for that price & rent for that amount, it fits the 10% recap rate so I hope you can work it out.

Sonic
Old 02-28-05, 03:18 PM
  #9  
DVD Talk God
Thread Starter
 
kvrdave's Avatar
 
Join Date: Aug 1999
Location: Pacific NW
Posts: 86,189
Likes: 0
Received 2 Likes on 2 Posts
Originally Posted by Trigger
So it sold for 90,000 and now is selling for 56,000? I only hope you know something about the neighborhood that tells you the value will shoot back up. It would be a shame to find out that the house has ghosts or it's built over some radioactive underground river.
Use to be a house I hung out at in High School and watched Star Trek on Sundays. Then it sold to a couple who needed a house in town for when they couldn't get out to their house out of town. Then it sold to a couple who just needed a nice house, then it sold to a guy who worked at a plant that closed down, and he lost it.

They screwed up with the price on it, however. I would be surprised if I get it because I am an investor, but the chances of anyone else even bidding in the next few days is only 50-50. There just isn't that big of a population around.
Old 02-28-05, 05:11 PM
  #10  
DVD Talk Ultimate Edition
 
Join Date: Nov 2001
Location: Beantown
Posts: 4,515
Likes: 0
Received 0 Likes on 0 Posts
Originally Posted by kvrdave
Use to be a house I hung out at in High School and watched Star Trek on Sundays. Then it sold to a couple who needed a house in town for when they couldn't get out to their house out of town. Then it sold to a couple who just needed a nice house, then it sold to a guy who worked at a plant that closed down, and he lost it.

They screwed up with the price on it, however. I would be surprised if I get it because I am an investor, but the chances of anyone else even bidding in the next few days is only 50-50. There just isn't that big of a population around.
kvrdave, I know you mentioned before, but where do you live, where you're finding housing that cheap..
Old 03-09-05, 11:27 AM
  #11  
DVD Talk God
Thread Starter
 
kvrdave's Avatar
 
Join Date: Aug 1999
Location: Pacific NW
Posts: 86,189
Likes: 0
Received 2 Likes on 2 Posts
Just an update. I got outbid by someone who offered $3k over asking.

Oh well, my new years resolution may still come true.
Old 03-09-05, 11:33 AM
  #12  
DVD Talk Limited Edition
 
Join Date: Nov 2000
Location: Minnesota
Posts: 6,535
Likes: 0
Received 0 Likes on 0 Posts
Originally Posted by kvrdave
Just an update. I got outbid by someone who offered $3k over asking.

Oh well, my new years resolution may still come true.

Until next week
Old 03-09-05, 11:38 AM
  #13  
DVD Talk Ultimate Edition
 
Join Date: Nov 2001
Location: Beantown
Posts: 4,515
Likes: 0
Received 0 Likes on 0 Posts
Originally Posted by SpaceBoy
kvrdave, I know you mentioned before, but where do you live, where you're finding housing that cheap..
eh? Just curious.
Old 03-09-05, 11:42 AM
  #14  
DVD Talk God
Thread Starter
 
kvrdave's Avatar
 
Join Date: Aug 1999
Location: Pacific NW
Posts: 86,189
Likes: 0
Received 2 Likes on 2 Posts
Oh, sorry. I live in the Columbia Gorge. South Central Washington. And this would have been the most expensive I have dealt with.

My last two were for $20,000 and $21,000. They bring in $475, and $495 respectively.
Old 03-09-05, 11:44 AM
  #15  
DVD Talk God
Thread Starter
 
kvrdave's Avatar
 
Join Date: Aug 1999
Location: Pacific NW
Posts: 86,189
Likes: 0
Received 2 Likes on 2 Posts
Oh, and it isn't like there are lots of houses around like that. I wait and stalk my prey. If I find one worthy of buying a year, I'm doing well. You have to look for distressed sellers, etc.
Old 03-09-05, 12:43 PM
  #16  
DVD Talk Hall of Fame
 
Join Date: Aug 2002
Location: Seattle
Posts: 8,978
Likes: 0
Received 0 Likes on 0 Posts
Originally Posted by Trigger
So it sold for 90,000 and now is selling for 56,000? I only hope you know something about the neighborhood that tells you the value will shoot back up. It would be a shame to find out that the house has ghosts or it's built over some radioactive underground river.
It's probably built over the graves of death-row inmates from the State Penitentiary in Walla Walla, WA.
Old 03-09-05, 12:57 PM
  #17  
Admin-MemeCat
 
VinVega's Avatar
 
Join Date: Nov 2000
Location: Caught between the moon and NYC
Posts: 32,726
Received 113 Likes on 68 Posts
Cripes Dave, how much inventory do you currently own? You're out of control, but we love ya for it. Good luck!

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Thread Tools
Search this Thread

Archive - Advertising - Cookie Policy - Privacy Statement - Terms of Service - Do Not Sell My Personal Information

Copyright © 2018 MH Sub I, LLC dba Internet Brands. All rights reserved. Use of this site indicates your consent to the Terms of Use.