All Forum Posts by: Angel Rivera

I met with the seller yesterday and inspected the property. I found it needed quite a bit more work than I initially estimated but I was able to get my max purchase price. I also found out she filed chapter 13 bankruptcy in July of last year. According to her, it has been dismissed since then and the bank is foreclosing on the property. I asked if she could procure the dismissal paperwork, provide a payoff for the bank, and HELOC so I could accurately assess the situation. Today she told me the lawyer handling the foreclosure said they hadn't received the dismissal paperwork needed in order to provide a payoff for the account. I called a local foreclosure lawyer and was told the bank should be able to provide a payoff anytime, up until it goes to auction. From my understanding in Ga, once bankruptcy is filed the bank cannot foreclose on a property for 30-60 days after it has been dismissed. I don't want to walk away from this deal as it can still be a homerun depending on the actual lien balances. Any thoughts on how to proceed in this situation?

 Jay, I appreciate the offer. Let me talk to owner tomorrow and get some fine details. I'll reach out to you if I think it's something you might be interested in.

Wish I could write a check for it Jay. I'm just getting started down here so maybe one day. My partner has a HELOC for 140K we were planning on using for this (our first) project. This opportunity just jumped in my lap this morning. We'll be meeting her tomorrow for lunch to go over the details. Minna at this time we don't have any competition. Do you guys think 5% of what the home sells for is a reasonable offer to give the seller?

Good afternoon from sunny Savannah Ga. I have a home owner in Pre-foreclosure. She owes 27k to BB&T and has a HELOC with an outstanding balance of 95k. 32K gets the mortgage and lawyer fees paid off (reason for the foreclosure) and what's left is the HELOC. The home's ARV is 310k. She's open to seller financing on the HELOC balance until we can fix and sell the home (45-90 day). I'm estimating a gross profit of $92,491.80 before paying my one partner in the deal. What do you think is a fair offer to someone who is going to lose their home? The other option is us walking away and her losing the home to foreclosure. I'm not trying to be heartless but this is the business we're in and I've never had this kind of situation. Any advice would be appreciated.

@Ray Johnson do you have a rule of thumb percentage you would use for money set aside for repairs? Also do you have bottom line cash flow number for properties you would consider as good investments?

@Jaysen Medhurst what I mean by buffer is a means to deal with potential issues that arise with a property such as unexpected huge repair cost.

Is $500 a month cash flow on the property worth keeping as an investment? It's worth 225k and I owe 150k. I'm trying to get a grasp on if it's worth pulling a LOC on the rental as a means to use as potential down payment on any deals I find or would it be better to sell it outright pocket the cash before I have to pay capitol gains.

If I rent my current place I can cash flow 300-400 a month after total monthly expenses.

@Dave Foster would you consider cash flowing $500 on a property you spend $1000 monthly a good investment? I'm thinking about a HELOC or selling as well. I've got 75k in equity and it's been rented for a little over 2 years now. I'm coming up on that 2 out of 5 year window.

I've got one rental with 75k in equity. I've been been cash flowing $500 a month on it for the last 2 years. It was my first home. I'm thinking of taking out a HELOC on it as a buffer and renting out the house I'm in now. Has anyone done this before and would you recommend it? Any advice would be appreciated. I'm in Savannah Georgia.