All Forum Posts by: Ben Meier

*Update* I got in touch with the "owners". They bought the property, built a house, rented it out, and never changed anything at the courthouse. 

After getting behind on the taxes, they weren't able to pull equity out of the home due to the title. They tried changing the title but couldn't due to the deed not being in their name. The more the tax liability grew, the more they were afraid to pay it because of the possibility of losing it to the heirs of the deed holder (us). 

We'll respond to the suit and sign the property over after an filing affidavit of heirship, pending any kind of paperwork showing my grandpa sold them the plot or they built the home. 

The moral of the story: Get a good will made and ensure that all purchases are recorded properly. 

Sure, it sucks to lose what would have been a sweet deal, but it was too good to be true. Either way, I pulled a bit of capital together so now I finally have money to pull the trigger on something.

Correct, LGBS did file the suit. I just spoke with them to get more details and this is as clear as mud. Property is in his name, they HAD been paying property taxes. Although not recorded at the CAD or county clerks, it's possible that the supposed owner has some physical paperwork for FSBO or a deed. There was never a warranty deed with vendor's lien or anything of that nature recorded. The issue is the woman with interest in the property is MIA.

As far as filing an answer to the lawsuit, that will be done through Walt Fair PLLC before the due date. I needed to find out if this was even worth pursuing  and whether or not I'd be liable for some unknown mortgage, various liens, etc before throwing my hat in the ring.

So far so good, except for the issue of ownership. At this point it becomes somewhat of a moral issue. Likely, I can legally take this rental property from an elderly woman, but I'm not going to do that if she possibly built it and legitimately paid off the mortgage but never changed the deed on the plot. More to come when I file my answer to the suit.

 Thanks for the advice. I'm currently working with the law firm who filed the suit on behalf of the county and have contacted a lawyer to get the ball rolling on an affidavit of heirship. As far as a mortgage, I honestly don't know if there is one. I have the capital to pay the back taxes but will work with the law firm who filed to see if there's any room for negotiation. This all seems too good to be true, so I'm kinda waiting for the other shoe to drop.

 Thanks Jon! Will do!

Agreed, it's already rented and likely paid off (since the bank hasn't taken it in the last 5 years). If I'm acquiring a 125-150K house for 35K, my plan to start BRRRR investing just got supercharged. I don't know if long distance investing is for me, however, I can't complain if it's as straightforward as me paying taxes and getting it in my name.

Also, thanks to Chip and Joanna Gaines, all the shiplap being imported into the Waco area is somehow driving up prices.

I need a BP recommendation for an attorney specializing in REI in the Waco area.

My father recieved notice that he was being sued for back property taxes on a home he didn't know my grandfather owned. He said if I took this tax burden off of his shoulders, the property was mine. Pretty sweet deal.

It's 4 hours away from us near Waco, just a few houses over from my grandparents old home. In the 90s, my grandpa sold lots out of his land to create an addition in that area, so searching CAD/county clerk files is daunting.

Apparently this house was built in 2000 and my father didn't know that it was his. Fast forward to today - 35K in back taxes on a property with "tenants". The deed is in his name alone and my dad is the only heir. Neither grandparents wills went through probate. Whatever property my grandmother had interest in, she gave to her grandson.

We're driving up tomorrow to talk to a real estate attorney. I have to figure out how the home is being rented without being owned, if it can be transferred, and get the taxes paid. If not, this thing is going to auction.

What kind of stuff should I be aware of? How painful can this process be?

 Thank you for the reply Jerry. This is is the path he will likely take to limit exposure.

 Thanks for the reply! He is very risk averse so the refi sounds like a better option. Pulling out equity for liquidity instead of using an asset as collateral makes more sense. 

Greetings BP'ers,

My coworker/mentor has a financing issue to resolve. He owns currently 17 shf properties (all paid for) and is looking at a small apartment complex (10+ units under 500K). He has the equity to cover the loan a few times over but doesn't quite have the cash for the down payment on the commercial loan due to recently paying off his 17th home and making a few big ticket repairs. 

What are his best options? 

Should he cash-out refi a couple of properties to come up with the down payment? 

Find a portfolio lender who will loan him the down payment based on his assets?

Include one or more of the properties to secure the commercial loan? 

Any help would be appreciated. I finally turned him on to the BP podcast and want to see him take off like a rocket.

Josh, I agree with Nikki. My credit used to be garbage (I once got turned down attempting to buy a used motorcycle) but through monitoring it, paying down balances, and making sound decisions, it improved greatly. Credit monitoring saved my butt a few times. I currently have a FICO score of 800. There are credit forums with all of the tips needed to increase your score (keeping accounts open, increasing credit limits to decrease debt ratios, disputes, etc). Give them a look. You'll get it fixed up.