All Forum Posts by: Andrew Sime

Unbelievable Todd, can’t believe someone would do that but may be a blessing in disguise getting pushed outside your comfort zone.  And getting a taste of what answers you were looking for when you started this thread.   Congrats on the flips!

@Todd Powell

@Todd Powell congratulations!   I would agree with some that have said, if you want to quit, you can quit now.  Will certainly be a psychological shift when the checks stop but you cash flow is solid.  If not now maybe make it a goal to set a number with your wife, “this is OUR ‘enough’ number” and quit immediately when you hit it 

I am curious, with what seems would be a demanding W2 job, how you have managed your time to be able to do so much investing?    Contractors, team members, etc 

Thanks for sharing

thanks guys!

Hello,

Interested in a property on Hubzu.  There have been a few bidding periods so far where the house goes up, a bidder bids about 1 hour prior to the end of the auction, no other bidders, the auction ends, and the house is listed again in a couple days.  It has gone through 3 periods, the starting bid price dropping a little each time.  Each time there has been 1 bidder placing a bid about 1 hour prior to the end of the auction.  The bidder's initials have been the same each time (Hubzu only shows you first letter of first name followed by ******, first letter of last name followed by *****).

My question is, Has anyone read or experienced that Hubzu bids like this to encourage interested parties to place their bids?  It just seems strange to me.  Could certainly be another investor as well.

I have yet to bid as I believe the price has a long way to come down to be in line with what it's worth.

I am interested in a property being offered for Sheriff Sale in the future.  I am doing my due diligence to determine what I am getting into if I win the bid at the Sheriff Sale.   We ran a title search and I am reviewing the mortgage and judgements on the property

My question is, what items on the title search am I "inheriting" if I get the property at the sale?   The posted "judgement amount" on the Sheriff sale is $165k.  The original mortgage was for$119k. 

If I get the property will the mortgage and judgement both be wiped clean?

I attached an image of the actual title search.

On the title search there is the following:

1 Mortgage by Option One Mortgage/Wells Fargo for $119k

1 Judgment by Wells Fargo for $165k

1 Judgement from a Credit Bureau Collections for $779

1 Judgement from a Medical event for $692

2 State Tax Warrants for $417 and $60

Any advice, answers, or guidance are appreciated!

@Deuntae Carr

Welcome to the area Deuntae, and welcome to BP! 

AJ

BPers,

I am seeking some advice on what my best options are, if any, with a motivated seller I have come across in my neighborhood.  

I noticed some new vehicles at a distressed house in the neighborhood and there was an older couple working hard to clean it up.  I assumed they were the owners so I rode my bike by the place and said hello, striking up a conversation with the woman.  Long story short I got a tour of the property, a 3 bed, 1 bathroom house with detached garage which fits nicely within my rental property criteria.  

The owners are an older couple (early 70's?) who currently still owe $48,000 on the house.  The husband is handicapped and unable to do much work to help clean it up.  They typically would be in Florida (we are in Indiana) for the season by now but they kicked their own son out of this house so want to get it fixed up and on the market by November 1.  I mentioned that I buy properties that are distressed and fix them up typically to rent.  This piqued her interest as she was exhausted and very frustrated with the situation. (She mentioned disowning their son for what he did to the house etc)  I asked them to get me a price for what they would want for the house if they were to stop working now and sell it as is.  I am waiting to hear back and they insinuated it would be around what they owe.  

I believe the ARV on this home is around $65-70k and it needs about $5000 worth of materials if I do most of the work (I would rent the property out but I include this information in case an appraisal and refi is a possible strategy) My typical rental criteria is all in for $30-$40k cash and renting at about the 2% rule (700-800/month). This property would rent for 775-800. I am achieving 10-14% return on my other investment properties and would like to stay above a 10% return with this one as well.

So, since I will not pay 48,000 for the property is there opportunity to create a Win Win here with owner financing or something similar?  I do not know their monthly payment yet, but do plan to find this out.  

I have a friend/realtor/potential partner that is interested in a property that he would buy and renovate and live in for 5+ years.  It is in a nice area and he would be able to rent it out 6 weekends each year for college football games which could net 8-10k total.  If he needs my cash to purchase and rehab can I legally just lend him the money with an agreement  (Note &  Mortgage or Trust Deed)?

Also, should I look at it as an investment partnership or more as though I am a hard money lender?  How would you structure?  Should I participate in rehab or let him make the calls since he will be living there?

Looking to get my capital back out in 2 years or less (unless worth risking the upside of the "flip" when he sells).  He has a house currently that he would sell that could be most or all of the payback on the note for my exit strategy. I would propose a 20%? annual return on my funds while they are tied up

Numbers:

Purchase price: 65k

My investment: Estimated at 28k for down payment (12k), rehab and closing costs

ARV: Estimate 110k