All Forum Posts by: Brian Ploszay

This is a very tricky situation.  How did this guy take advantage of all these investors?   When you make a loan, you should put a mortgage lien on the property.  The lien goes with the property, not the owner.  Further, the loan should be full recourse, so the borrower bears responsibility for any loss.   Further, you should have done a title search, to see other liens on the property.   If the other liens were unsecured, the first recorded lien would get preference.    Yours is most likely to get wiped out.    Tell me more about how you made this loan.

My thoughts:  The real estate crash last time was caused by very loose lending - and basically a collapse of the mortgage market.   Today is different.  The loans that are being written are more conservative and there are less defaults.   Stock markets have declined before, without real estate crashes.  Real estate definitely slows down at a minimum with a major stock correction.   I am watching the market like you.

Sounds like a good possible rehab.  Probably not a good first project, but do-able for an experienced investor.

What is your goal?   Being a landlord, renovating properties?

Your market is very small - assuming you are buying in Yoakum.  If the growth prospects are negative for your immediate area - I am not sure I would recommend buying the properties.   

Usually tenants don't trash the plumbing, electric, roof, windows, heating, etc...

Still, I feel for you.  Carefully screen your next tenant.  Don't over-invest in this house, just make it rent ready.  

As a landlord, I used to do this myself.   Rats don't die easily in glue traps.   Old fashion spring traps worked pretty well.    You can seal the holes with foam that has rodent kill.

The problem with poison is that the rodent might die in a hidden place - like inside a wall.  And the smell will remain for awhile.   $500?   Sounds full price, but the guy sounds like he knows what he is doing.  In the long run, try to find a few service providers that are both good and affordable.  You'll be amazed at the differences in price that you can be charged for the same job.

This seems like a good deal, so you may want to "tie it up."    In my market, I can look up  the original mortgage fairly easy.  It is public record.   That tells me the original mortgage, not necessarily the current balance.  But it is a start.    Taxes same thing.  There should be a county website that tells you what the taxes are, and if they are delinquent.   Most contracts call for clear title, which means the mortgage would be released and the taxes are paid.   Next, nice if you can flip this, but if the margin is high, and you have the capital, be prepared to purchase this yourself.  Minor repairs and painting are suggested.

If it is a good deal for the rehabbers, they may still do it.  Much stronger deal if you can get her out.

Evictions are a public record.   you can check people's credit.   You can analyze other factors such as income, length of time at a job and other predictive factors.  Also, you can do a visit to their current residence.  There are many many ways to reduce the chances of getting a bad tenant.