All Forum Posts by: Armando DeGuzman

@Wayne Brooks Thats good to know. Thanks for the info. Its probably best if we consult with a lawyer on this one in regards to what the best practice should be. Appreciate the feedback.

@Jeff Wheatley Jeff not sure if that option will work as the current owner is in jail. LOL. Also, they probably wouldnt be willing to give us the same deal the lender is offering. The lender just wants to recover the amount owed to them by the owner. In essence they want to reassign to us to complete the project. The numbers are great with all fixed costs and rehab accounted for with the ARV at about ~70%.

@David Nunez thanks for the response. Its definitely a good deal. The private lender has indicated they will foreclose on the property and then allow us to purchase the property at the same price which is owed on the note. They obviously dont want to deal with the hassle of finishing the rehab to sell it when they have a buyer. This wont go to auction since the lender is just taking posession of the property back through foreclosure. Wondering how long a private party foreclosure takes. Will def consult with a lawyer on this one.

@Wayne Brooks thanks for the response. The property will be foreclosed on by the private lender. It won’t go to auction or the traditional REO process since this is a private transaction between two parties The private lender will take possession of the property via the lien. The lender has offered the property to us at the same price for which the note is outstanding. My question is how long would this foreclosure process take being that its a private transaction?

Have been offered an off market deal through a private money lender. The lender has offered us a property that another rehabber has defaulted on. The owner of the property is in jail and the lender plans on assigning the propeety to us in order to complete the rehab. We’ve analyzed the numbers and its a great deal. The property is in great shape and it wont take much for us to finish it and flip it. My question is how long does the foreclosure process take when a private lender has the lien? I know a standard bank foreclosure process usually takes long. What risks or pitfalls should we be considering in this transaction? We plan to open escrow shortly and move forward on this deal. Thanks.

Hey, we have been using Home Advisor and the subcontractors have been quite responsive. I havent actually contracted any yet. I have appointments scheduled for estimates.  Hope that helps.

I’m a new investor in Tucson, AZ wanting to get into the flipping business to raise capital with the long term goal of investing into multi-family. Does anyone have any experience or recommendations in how to properly incentivize contractors to stay on schedule and meet cost targets? Considering structuring a profit sharing model per project with a friend who is a general contractor. Thanks!

@Matt Shields thanks for the great info. The property does not have water or utilities but they are accessible from neighboring properties. Ive done some financial anaylysis and the ROI to develop any further is not worth it. We currently have it listed with seller financing as an option. Do you know if lenders will allow you to leverage the equity in vacant land? I own it free and clear. Thanks again for the response.

I have a 16 acre vacant land lot that is undeveloped. The county prevents me from subdividing into anything less than 5 parcels unless I develop it. I have already sold 4 acres which leaves me with 12 acres and I am able to only split it up 4 more times. This would be 4 lot sizes of 3 acres. The land has some homes being developed around it and the minimum requirement for home lot sizes in the area is 1 acre lots. The land is located in a stagnant market with very little growth and or appreciation. I would like to sell the entire piece of land to reinvest in multifamily properties. Theres very little interest in the parcels since they are larger than what people need or are willing to pay for. Im looking for a creative way to either get around the subdevelopment restrictions or how I can use this property to fund other RE investments.

@Benjamin Riehle Great article. Thanks for sharing. Would love to connect I also live in Tucson. I‘m new to the Bigger Pockets community and am looking to start investing in real estate. Ironically, I also work at Raytheon. Lol.