All Forum Posts by: Paul Amegatcher

@Coley James Yes you would transfer the property via quit claim deed to the llc. Also use an attorney.

Because sometimes the whole house looks like this and they dont want to deal with a realtor and multiple people walking through their home.    

Originally posted by @Coley James:

Paul,

I’m really hoping you can answer a few questions for me. I’ve been receiving multiple calls on a single family property that I’m listed as owner on public record. I was the original and only owner of a new construction property built in 2005. I filed BK in 2009 due to the market downturn. I included this property in the BK. The property has since been vacant, inhabited, ransacked, and ruined by the homeless etc since 2009. It’s in a tough neighborhood. I’m guessing the property has been written off by Suntrust (original lien holder) and either isn’t worth the cost to complete the foreclosure process or it’s already been written off. The Bank has not completed the foreclosure property and I’m still listed as the property owner on public record. My question to you is, do you think I can somehow file this quiet lien to acquire to property free and clear? I believe I’m getting all these phone calls because this is what is considered a zombie property. I thought the process may be easier since I’m actually listed as the owner. If I can acquire the property free and clear I’d like to renovate it and sell or even hold it as a rental unit. I look forward to your response! 

Your first step will be to get a title search on the property to see if there are any liens still attached to the property. You will be surprised to find that sometimes the banks release their liens if they write off the mortgage. The next step will be to verify if there are any delinquent taxes. If the taxes are current and there are no tax liens then I would say that the bank still has an interest in the property. Assuming the bank stopped paying on the taxes and they are now delinquent, then this is how I would approach the deal. I would transfer the property from your name into an LLC. I will then file a quiet title action to release any liens that are still attached. Once the liens are released you can proceed with rehabbing for rental or flips. Good luck.

Paul Amegatcher

Performance title out of Kettering Oh is a great title company if you are an investor.

Tom Napier,

Section 8 has been great for me and other investors especially in the rougher/ borderline neighborhoods but you still have to go through the inspection process to have the unit approved. This could cost most landlords about a month of rent. Below is my list of positives and negatives for section 8 rentals. 

Positives:

Government pays on time with direct deposit.

Tenants tend to stay longer due to not many landlords offering section 8 housing

Landlord receives at or above market rents in borderline neighborhoods.

Negatives:

The property has to pass the inspection criteria prior to tenant taking possession. One or more months of lost rents whiles waiting on approval and inspection.

Yearly inspections with corrective items.

Perception of lower quality tenants. (Screen all tenants regardless of section 8 voucher or not).

Real estate is about comfort and some people are not comfortable with section 8 tenants. As long as you screen the tenants and have the right amount of vouchers I think its a great niche strategy for filling your rentals with quality tenants.

@Erica Blackwell Most of the lenders will not negotiate a payoff with the original owner. They may be more willing to work with an investor. I've heard of lenders releasing liens with a request from a title company. I have not experienced this myself. I have always taken the quiet title route.

I have used Bill Warner with BC Warner home inspections in the past. He is very detail oriented and knowledgeable. 

Paul Amegatcher

Good find. Englewood has great comps from $100K all the way to $300K. I'm confident you will do fine. I'm in the Dayton area as well if you want to connect. 

You can do it as long as the property will qualify for bank financing. I have done this in the past but the buyer had to get a construction loan.

If you have redfin available in your area then you can use it as well. It has mls data. You can also pay for service that will get you comps.