All Forum Posts by: Adam Walter

Yes, I believe you are correct.  I will probably record it once I buy it.  

 

In Ohio it's a little different. With a recorded land contract, if the vendee defaults, then the vendor can do a forfeiture if the land contract is less than 5 years old and the vendee has less than 20% equity. The forfeiture is quicker and less time consuming than a foreclosure in Ohio.  I believe all land contracts need to be recorded in Ohio, but I am not 100% sure.  

Chris,  Thanks for your response.  I am a more advanced investor than my initial post indicated. I was in a hurry to get to my son's Volleyball tournament and wanted to get the post in before the weekend to hopefully get some feedback (which I did!)  To your point about education, I have done the following in the note/land contract space:

• I have taken Donna Bauer's Note course.
• I have taken Scott Carson's Note course (before the controversy!)
• I follow this forum
• I have created 15-20 Notes and Land contracts over the past 3-4 years.

I have purchased a non performing land contract through a wholesaler. It was actually one of Scott Carson's (small world, the wholesaler said he was a jerk to him).

I have been a full time investor for the past 15 years.  

• I have purchased over 100 properties through foreclosures sales and know the foreclosure process in southwest Ohio pretty well. 

This purchase will represent less than 2% of my overall portfolio and I only invest in 4 counties in Southwest Ohio, close to where I live.  I own a similar property less than a block away and know the area well.  I feel pretty qualified to purchase the land contract.  

This is the first time I have purchased a property through Paperstac or any 3rd party online marketplace.  As part of my due diligence, I wrote the post.  I had some questions/concerns about the process and the land contract not being recorded.  I quickly included the "should I get title insurance" at the end to hopefully elicit a response like, Yes you should, Paperstac can do that for you, or this company does them quick and cheap, or 100% of the time you should (I was already at 95%), etc.  This was the only questions/concerns that you addressed.  

At first, I wasn't going to reply, but it is my understanding that this forum is not only for advanced investors, but all investors who may be interested in note investing.  You are one of the senior contributors in this space and I felt you might appreciate the feedback.  My question might seem stupid to you and other experienced note investors, but there might be a newer investor who appreciated the question and discussion.  Toilet paper is a no brainer for you and me, but keep in mind 70-75% of the worlds populations doesn't use toilet paper, so it might not necessarily be a no brainer for others.   

@Wesley I.  Yes it is in escrow.    

@Jay Redding  Thanks for your insight.  I will ask for seller provided title insurance and will get an independent title search.  I have done many of the due diligence items already, and everything looks good so far.  

@Peter Walther Thanks for your comments.  It is not uncommon in Southwest Ohio for Land Contracts not be recorded.  I'm not sure why they wouldn't be recorded, maybe if the vendee defaults, they try to evict instead of foreclose or do a forfeiture.  Also by not recording, it doesn't cloud the title.  I am buying the vendee's interest.  The land contract is 10 years old and not recorded.  The interest rate is 10% which was okay at the time of the land contract, but now the usury rate in Ohio is 8%.  I will definitely reach out to a real estate attorney regarding this before purchasing.  

@Don Konipol and @Jay Hinrichs, thanks for your responses.   I've created many Land Contracts in Ohio and they are supposed to be recorded here.  I will ask my attorney if there are any penalties if they are not.   

I like to touch and see my investments, so this one is a good fit for me. I would never invest in land contracts in municipalities that I am not familiar with. I would be happy if the Vendee defaults and I get the property back. If she doesn't default, I'm getting a 12% ROI. It's a win-win for me.

Hi Everyone,

I'm in the process of buying my first Land Contract through Paperstac and had a few questions.  The property is in Ohio, and I have a house a block away and drove by the property yesterday.  Everything looks good with the collateral and the process is easy so far.  We are at the point where Paperstac is asking me to wire funds and the seller to provide file information.  Is it normal to wire funds before reviewing the file?  

Another question is that I can not find the land contract recorded at the county website.  How concerned should I be if the land contract is not recorded?  Is there anything else I should look for or do?  Should I get a title search?  Thanks!!   

I think it might be a little late, but it all depends what your goals are.  For me, I’d rather give a tenant $250 and leave on good terms than give my attorney $250 and then have to evict.  

When I drop off my 3 day notice, I give the tenant 3 options  1. Pay Rent. 2. Move by a certain date and collect $. 3. Do nothing and have sheriff place belongings on the curb. I rented low income apartments and probably only evicted around 20% of the time.

The letter gives them reason to call you or pick up the phone. I reach out to the tenant a day after I dropped it off the notice to allow them to cool off and make a decision. 

@Kameron Wilson, I am not an attorney but I've purchased many properties at Foreclosure Auctions.  I believe you can purchase it up to the confirmation date of the foreclosure which usually happens 3-6 weeks after the auction of the property.  I had it happen to me last year, I purchased a property at the sale and another investor had a contract on it with the owner. The bank bringing the foreclosure wouldn't give them the final payoff, so they redeemed it after the sale.   I also was part of a short sale which finalized 2 days before the sale.  

The trick is finding owner and negotiating with all the debtors.  I would suggest looking at the court docs for a lot of the info.  

@Chris Seveney @Andy Mirza  It is my understanding that eventually, all the sheriff sales in Ohio will be going to an online format.  Several counties have signed up with Realauction.com (not sure if they are doing all counties).  Here is the link for Butler County: https://butler.sheriffsaleauct...   

I don't like this format because you have to have funds for the deposit amount to them before you can bid on the property. You can't just give a credit card number. Also, they don't advertise on the MLS, whereas some of the smaller and local PSOs do (Auction.com doesn't advertise on the MLS). I feel PSO's are the way to go to get the highest value at the sale.