What % Should I Offer On A Fannie Reo In A Bad Area Of Atlanta?
i found a condo/fixer upper in a bad area and it could work. the area is coming back.
what is the average discount that is being offered on a fannie mae reo? THANKS
[ Edited by ralphn404 on Date 02/06/2008 ]
WOW-THANKS
ps: this fannie price has been the same for months or could you possibly have it confused with fha/hud reos?
Sorry, you are absolutely right! I am thinking FHA rather than Fannie Mae.
I think I am trying too hard to answer questions with too little time and too much else going on. Time to kick back a bit and let other people work it for a while...
Chris
they and freddie mac have some odd guideline like not < 70%.
However, In a phone conversation they said:
Feel free to submit a lesser offer and we will evaluate it.
Thank you - I will try and contact you. You have been very helpful.
Thank you - I will try and contact you. You have been very helpful.
What would you offer the investor to invest? In other words, it sems they could just buy a home in the same development for less and keep all the potential profit when they sell in the future (if it goes up)? More details would need to be provided to comment.
Hey Anita,
Share some of the specifics such as how much someone would invest per month, the value of property, the upside potential and how much the home is renting for/payments/escrows.
Thanks.
Hi ceinvests,
I will try to e-mail you although your address looks incomplete - can you give me your correct e-mail just in case?
Thanks
It is not a win/win for someone looking for cashflow or even a equity investor. However, you might find someone you know, who is not a disqualified party, to use their IRA.
If they gave you $5,000 or $10,000 to keep you afloat and you gave them an equity share position of X you might find a taker. You would have to find someone in their 30s or 40s to go the distance with you or someone with a roth IRA that does not have minimum distribution requirments and does not need the money to live on. It is too late for you to use your own IRA if you have one.
Look for a personal friend or non-disqualified family member.
Good luck!
So the bottom line is you would like to find someone willing to pay $400 a month in exchange for half of the future appreciation? And what about vacancies, maintenance, repairs, etc.?
Chris
I was willing to pay X, inorder to have the seller not sell.
I have 1.5yrs to come back and pay him the amount specified in the option.
This gave me time to do my due diligence and get entitlements from the city.
were you trying to get zoning changes from the city?
not a zoning change, just entitlements approved.
Basically what would be built, how dense, etc.
Could I squeeze 6 sfr on to the land or would 4 be the max (this was a zoning change)
How did the Below Market Rate requirement affect the project.
etc.
And time for me to determine the overall feasibility
Just curious cjmazur, what did you have to put down for the option? Most likely, you will not get this option premium back, correct?
Was this for a commercial retail space?
thanks.
This was for a residential development. There were a couple adj. lots that I wanted to subdivide.
The price of the option was non-refundable, or applied to the purchase price.
It specified the purchase price.
expiration date
and term for renewal.
A pretty simple agreement.
Personally I would try several brokers if I had a difficult loan, as one of them might just have access to the product you are looking for. It is true that you may pay a bit more- but then again you may pay a bit less, too.
Chris
The best I have seen has been 97% LTV OO.
It might be some hybrid loan that has additional colateral like stocks.
As Chris says NOTHING is impossible.
On the other hand you have to look at what you are asking for.
You want essentially a 100% LTV non-recourse loan. -- Pretty damn tough to find even if you have a track record and the deal of the century.
Not impossible. Assuming you had a AAA credit tenant lined up at say a 15% cap rate.
On the other hand you and approximately 987,342 other people are looking for that some deal. Some of them have a track record. Most of them have experience. Many of them have in depth knowledge of one sort or another. Why is this theoretical AAA credit tenant going to deal with you rather than one of them?
Essentially you are asking a question akin to, "Can I get into brain surgery without a medical degree or even high school biology class?" Sure, its possible. Its also possible that it will be easier to just go back to college, take the pre-requisite classes, get the appropriate degrees, etc. etc. Its also somebody will end up dead if you do it the "easy" way.
Commercial real estate is not as complicated as brain surgery (although some days I wonder as I plow through this 100 page long environmental report) but its not as simple as learning to ride a bicycle either. Is it possible for a guy who has never ridden a bicycle to ride from NY to Washington? Sure, but that first 10 or 20 miles is likely to be very difficult.