All Forum Posts by: Paul Choate

@Jeff Howard

I think you have a good strategy but I am coming from the opposite situation (Oklahoma). I like the idea of getting something going now as experience is always a factor for financing or working with others. It took me years to establish credibility with my lender and my partners. I would also imagine messing up on a Midwest property will not have the same financial consequences of making mistake in CA. There is always a learning curve.

I am happy with the cash flows I can get out here. I generally shoot for $15 - $20k all in with monthly rents in the $500 - $600 range. I don't think those numbers are realistic for out of state investors. I am on the ground in a low cost area so it is easier to find these kinds of deals. You will probably need to pay more or buy in more stable areas but make sure you look at the actual sales in the area (Zillow is easy to use) as you will be surprised what things go for. The second biggest mistake you can make is paying too much. (The first is doing nothing.) If your goal is to gain experience and get some cash flow, you are on the right track.

I don't participate in turnkeys so all I can say is make sure you do your research on the individual company and get independent inspections on the subject properties. Good luck on your investing.

There are generally waiting periods of at least two years from the discharge of the bankruptcy. Some are longer. I would check with the leader you are planning to use before you get too far in the process.

@Luis Gonzalez

https://www.biggerpockets.com/forums/521-events-an...

https://www.biggerpockets.com/forums/521/topics/30...

Here are the two for this month.

This is a networking event. We are having lunch and sharing our current projects, successes and struggles. There is no speaker or expectation of participation on anyone's part. Please come and listen or ask questions. We have very good discussions about the local market and activities of the local investing community.

This month is the 2nd annual pre-delinquent tax sale Q & A extravaganza! If you are planning to bid in the June resale in Oklahoma please come to hear war stories and ask and also answer questions about the process. I am sharing my experiences over the past three years. I hope to hear yours! 

Please let me know if you have any questions. Please let me know if you are coming so I can have a rough head count. Please come anyway if your schedule opens up and you did not tell me!

We are meeting on the fourth Tuesday of every month for lunch so put it on your calendars.

We also meet on the second Tuesday of every month in the evening. 

Keywords- Oklahoma City, Norman, Midwest City, Yukon, Edmond, Mustang, Oklahoma

This is our evening meet up for seasoned pros and newbies alike.

You'll meet, you'll greet, and you'll be networking!

Of course, there is no selling of products or services at this meetup.

Hope to see you there!

The Barrel 4308 N Western Ave, OKC, 73118 at 5 pm.

Watch for the lunch meet up on the 4th Tuesday at noon.

Oklahoma City, Tulsa, OKC, OK, Cleveland County, Yukon, Edmond, Shawnee, Midwest City, Del City, Moore, Warr Acres, 

@Kima Murry

We have a meet up twice a month here in OKC. You can meet many individuals currently active in the OKC area. If you have not done so, set your keyword alerts with OKC, Oklahoma City and Edmond and you will be notified of the meeting times and places.

I have been doing this for almost 10 years and the most important thing I have done is meet local investors. Good Luck!

REGULAR LUNCH MEETING

This is a networking event. We are having lunch and sharing our current projects, successes and struggles. There is no speaker or expectation of participation on anyone's part. Please come and listen or ask questions. We have very good discussions about the local market and activities of the local investing community.

Please let me know if you have any questions. Please let me know if you are coming so I can have a rough head count. Please come anyway if your schedule opens up and you did not tell me!

We are meeting on the fourth Tuesday of every month for lunch so put it on your calendars.

We also meet on the second Tuesday of every month in the evening.

Keywords- Oklahoma City, Norman, Midwest City, Yukon, Edmond, Mustang, Oklahoma

I am a bankruptcy attorney. Everything that follows is theoretical. I have no personal experience or training in this subject and do not know the laws of any state beyond my own. Get legal counsel for your specific situation. Now to the fun stuff!

I have often wondered about this strategy but have not pursued it because I obviously am too close to the owners I know. It seems like it is a waste of economic capital to have these houses sitting vacant and deteriorating. I briefly looked into the possibility and everything I ran into seemed negative. I don't know of anything that would stop someone from doing it. If someone has direct knowledge from the lender side I would love to know the reason or statutes that prevent it. I assume there are some consumer protection laws that prevent it but since no one does it that I am aware of, I have not ran across the law before. 

Positives-

For the owner it is out of their name and and they do not need to worry about nuisance claims or taxes etc. (This would solve the "zombie mortgage" problem. A zombie mortgage is where the owner leaves the home generally under threat from the mortgage holder and then the mortgage holder never files a foreclosure so the taxes and city fines accumulate against the owner. Banks are under no obligation to act so they get the best of both worlds. In some jurisdictions this can result in a warrant for the owner's arrest.)

For the bank, the home is occupied and a minimal level of habitability is maintained. 

Negatives-

Whatever contractual or statutory provisions against the practice which may be in existence.    

Management- dealing with tenants who are willing to live in this unstable situation. You can give them a month or two notice if you learn the foreclosure process. Many people will have a problem with the whole situation if they are getting legal notices all of the time. This might be a good strategy for a short term rental on Airbnb etc. Then you would have to furnish it.

There is also little to no reason to maintain the home beyond minimal maintenance and upkeep. The cap ex expense would rarely be maintained. The banks can mitigate this by enforcing their rights in a timely manor. The former owner would only have an issue if the bank pursues a deficiency against them. Many states do not allow that or limit it.

Those are my thoughts let me know if you pursue it as I would like to learn about it. 

Welcome @Charles Deal.

We meet on the 2nd Tuesday of the month from 5-7 pm for an evening meet up and on the 4th Tuesday at noon for a lunch meet up. As Scott said, I will post the date and locations a few days before. Good luck on your investing!

Had a great group again today at the Oklahoma City meet up! I'm sorry I had to leave quickly to get to court on time. In fact - my mind was so ablaze with thoughts and ideas from talking to everyone I skipped out on the bill! I just realized it tonight and called the restaurant. They said someone paid for me. Thank you!!!!! If someone could let me know who it was I would love to buy your lunch sometime soon. Thanks again!