Looking around the near West side - perhaps Tremont, Detroit Shoreway, Ohio City areas.  Probably fix it up and keep it as a rental.  Of course I would be better off buying a place in the suburbs due to the schools but there are solid homes in decent neighborhoods literally in move in condition selling for $30k & less.

 

Anyone have any experience with this?  I'm not intimidated by fixer uppers either as I do construction for a living and have friends in every trade that owe me favors.  I'm more interested in learning about how to obtain a small bank loan, how the bank would handle the process without even knowing what the address or condition of the house is, until I've technically already purchased it?  I see also that Cuyahoga Co requires a bank check at time of purchase from successful bidder of up to $10k.

Looking around the near West side - perhaps Tremont, Detroit Shoreway, Ohio City areas.  Probably fix it up and keep it as a rental.  Of course I would be better off buying a place in the suburbs due to the schools but there are solid homes in decent neighborhoods literally in move in condition selling for $30k & less.

 

Anyone have any experience with this?  I'm not intimidated by fixer uppers either as I do construction for a living and have friends in every trade that owe me favors.  I'm more interested in learning about how to obtain a small bank loan, how the bank would handle the process without even knowing what the address or condition of the house is, until I've technically already purchased it?  I see also that Cuyahoga Co requires a bank check at time of purchase from successful bidder of up to $10k.

 

That's how I bought my apartment, how buying at that time and buying now are two different ball games.

 

If its a bank foreclosure, they already know the address.  If I'm not mistaken you need to have a appraisal and inspection to make sure the house is in line with the loan type and not worth more than the loan you need.  it's complicated.

I know it's complicated.  I'll probably meet with a bank in a few weeks, but I know a home is in foreclosure in my neighborhood which led me to browse the sheriff's auction listings.  I don't think I want to spend more than $50k, and would put down about $10k.  That leaves a small amount to finance over maybe 10 yrs.  Also keeps the payments way down low so it wouldnt' be too much of a burden if there was a large lapse getting a renter, and also leaves enough cash flow to make improvements down the line.

I know it's complicated.  I'll probably meet with a bank in a few weeks, but I know a home is in foreclosure in my neighborhood which led me to browse the sheriff's auction listings.  I don't think I want to spend more than $50k, and would put down about $10k.  That leaves a small amount to finance over maybe 10 yrs.  Also keeps the payments way down low so it wouldnt' be too much of a burden if there was a large lapse getting a renter, and also leaves enough cash flow to make improvements down the line.

 

Sounds like a plan if you get a 10 year loan. 

 

My parents just bought a foreclosed home from a bank.  But the owners (for now) are staying on renters.

Maybe hire a broker who specializes in REO?  They have contacts from within banks.  I think it's the better and safer approach than going to a sheriff sale and making a bid.  You may be able to get a comparable or better price, since you're saving the bank time and money. 

^ cd's right. A broker that understands these types of deals can help navigate you to programs to finance, and help you negotiate with the bank. Bank's don't negotiate a lot on the REO's but there is wiggle room.

^ cd's right. A broker that understands these types of deals can help navigate you to programs to finance, and help you negotiate with the bank. Bank's don't negotiate a lot on the REO's but there is wiggle room.

I have to agree with that.  Its basically sold as is.

I buy foreclosed houses, own three right now one of which I am in the process of fixing up.  If you need a realtor that specializes in REO let me know. As for the loan questions, I can't help with that we always only purchased what we had cash for so as not to over extend ourselves (me and two buddies).

 

You seem to have a great advantage over me when I got into it two years ago in that you have background in the industry.  Bottom line if you have an REO realtor they usually have key-pad type locks that you can call your realtor, give he/she the MLS number, they look it up and give you the code so you can get the key from the lock box and inspect it yourself which you clearly ought to do.  My realtor is pretty good, before I used her I tried low balling to much to where bank REO departments hated even fielding my phone calls... she seems to know what offer is low but will be accepted right away.  She will call the second a property hits the market so we can offer before others have a chance to see it to avoid a bidding war.

 

MTS is correct, REOs are DEF sold as is... but since you have the check in hand you can usually get the title pretty quickly which is good.

 

 

I think it's the better and safer approach than going to a sheriff sale and making a bid.

 

For houses being sold at a sherriff's sale, can you even get inside to look around before the auction?

I buy foreclosed houses, own three right now one of which I am in the process of fixing up.  If you need a realtor that specializes in REO let me know. As for the loan questions, I can't help with that we always only purchased what we had cash for so as not to over extend ourselves (me and two buddies).

 

You seem to have a great advantage over me when I got into it two years ago in that you have background in the industry.  Bottom line if you have an REO realtor they usually have key-pad type locks that you can call your realtor, give he/she the MLS number, they look it up and give you the code so you can get the key from the lock box and inspect it yourself which you clearly ought to do.  My realtor is pretty good, before I used her I tried low balling to much to where bank REO departments hated even fielding my phone calls... she seems to know what offer is low but will be accepted right away.  She will call the second a property hits the market so we can offer before others have a chance to see it to avoid a bidding war.

 

MTS is correct, REOs are DEF sold as is... but since you have the check in hand you can usually get the title pretty quickly which is good.

 

FE you sound like my parents.  My mom has scoping out Fairfax and Hough for the past year.

FE you sound like my parents.  My mom has scoping out Fairfax and Hough for the past year.

 

Seeing as they raised you on South Park, I will take that as a compliment!  I stay in the Kinsman area simply because its close for me and my buddies, but the guy who helped "school" us has most of his properties in the area your parents were looking, E 118th and near-off campus case western area... so I guess its not quite fairfax/hough but its close.  We do have one of our houses on Dorver Rd. right off of Warner road near the Cleveland/Garfield border but we only got that because it was a DEAL, siding was good, roof was good, pipes were all there as well as hot water tanks etc... thats rare on the East Side!

FerrariEnzo...hey instead of clogging up this forum with little questions I wanted to send you a private message but your box is full.

Cleared it out bob, shoot me a PM.

FerrariEnzo...hey instead of clogging up this forum with little questions I wanted to send you a private message but your box is full.

 

post them here, they may be helpful to someone else.

 

 

FE you sound like my parents.  My mom has scoping out Fairfax and Hough for the past year.

 

Seeing as they raised you on South Park, I will take that as a compliment!  I stay in the Kinsman area simply because its close for me and my buddies, but the guy who helped "school" us has most of his properties in the area your parents were looking, E 118th and near-off campus case western area... so I guess its not quite fairfax/hough but its close.  We do have one of our houses on Dorver Rd. right off of Warner road near the Cleveland/Garfield border but we only got that because it was a DEAL, siding was good, roof was good, pipes were all there as well as hot water tanks etc... thats rare on the East Side!

 

LOL..  It's not me.  It's my mom.  She determined to buy an entire neighborhood.  Ever since she stopped working and I moved out she had to find something to occupy her time.  so her "job" has been managing she and my dads properties.  Which in turn has keep my grand father and uncle busy.

I think it's the better and safer approach than going to a sheriff sale and making a bid.

 

For houses being sold at a sherriff's sale, can you even get inside to look around before the auction?

 

Usually not.  The only option is to find your way in illegally (which I am not condoning).  It's pretty difficult finding some to give permission for you to walkthrough and inspect.

gottaplan, I wouldn't rule out HUD-owned properties.  You can visit NHMS, who handles HUD properties in Ohio, at http://www.nhmsi.com/. 

HUD is great, unlike Sherrifs auctions where the best ones just happen to not make it to auction (county employees, appraisers and people within the Sherrifs auction will reroute the best ones to friends etc...).  The only thing about HUD is they give preference to owner occupiers as opposed to developers but since most of them need help and aren't inhabitable right off the bat, a standard bank wont offer a mortgage to a consumer to purchase it.  Thus there are few owner occupiers who have the cash to swoop in and buy them... so they sit for a few days or weeks and then HUD offers them up to investors.

 

If anyone needs a decent REO/HUD agent, I use Helen from Westway Realty based on Lorain Ave, 216-941-7600.  Tell her Jahmil (my business partner) sent you since he handles most of the contact with her.  Shes an older lady but don't let that fool you she is a damn shark!

Gottaplan, contact the local CDC of those areas, too.  DSCDO definitely can help you identify foreclosures and might be able to give you contact information to make an offer.  I'm not sure that Tremont and Ohio City do the same. 

 

 

If anyone needs a decent REO/HUD agent, I use Helen from Westway Realty based on Lorain Ave, 216-941-7600. Tell her Jahmil (my business partner) sent you since he handles most of the contact with her. Shes an older lady but don't let that fool you she is a damn shark!

 

I second your recommendation - Helen Werb doesn't miss a beat.  I've used her for REO's in Lorain County on two occasions and she was on it within an hour of my call.

 

If anyone needs a decent REO/HUD agent, I use Helen from Westway Realty based on Lorain Ave, 216-941-7600. Tell her Jahmil (my business partner) sent you since he handles most of the contact with her. Shes an older lady but don't let that fool you she is a damn shark!

 

I second your recommendation - Helen Werb doesn't miss a beat. I've used her for REO's in Lorain County on two occasions and she was on it within an hour of my call.

 

Small world!  Yeah shes crazy, shell call with a new property and within a few hours expects us to have scoped it out and tender an offer.  She earns that commission!

Great feedback, thank you everyone for sharing.  Exactly what I was looking for.  I'm going to scour the neighborhood a bit this weekend and also see what the DSCDO has to offer as well.