All Forum Posts by: Carol Mthimkhulu

Hi @Kevin Harrison

Yup I have no other option but to see this through. I will do as advised if he refuses to move out like a civilized human being. Sometimes people will force you to behave like animals, I dont know if its being in denial or he is just trying his luck. I respect the elderly but I tell you this old man is pushing me in the opposite direction. I best stay calm for now and wait for the 28th of June. 

Hi

@John C S. im in South Africa, and the court date will be on the 28th of June, this is when the marshalls will be given the eviction papers to serve to the unlawful occupant. So will keep you updated after that!! 

@Colton S.

I tell you, this will be one of the deals I will remember for a long time. Will keep updating!!

Hi

I recently bought a foreclosure house through court auction, applied for eviction and awaiting the hearing to take place on the 28th of June 2016. 

Background: the current unlawful occupant (an old man) informed my attorney that he bought the house through "street community" I know my thoughts where also street community what?!! Basically this is an illegal and unrecognized method to purchase a bank owned property however, by some sick scam this occupant bypassed the bank and illegally took residence of the house. 

I am being told that whenever they try to evict him, the community/neighbors back the old man and refuse that he exits. This hasn't happened to me yet by I should anticipate such, so Im being told. 

What upsets me is that he knows he will be evicted , but somehow expects sympathy from the community? And if the community backs him, what are they saying about criminals in general? That his old, he should be treated differently?  Well I refuse to accept this, a crime is a crime. 

So I will wait for the 28th to see what happens. 

But if someone has been here before, Im all ears for your advice.

*And yes I checked if there aren't any legal privileges for the elderly that will put me at a disadvantage, and found none what so ever. 

The sad thing is that I have potential buyers lined up for the house, but I haven't been able to show them the house inside. Tick, tock I want to resell this house asap, get my money and be out of that dilemma. 

Hi @Sifiso Hlazo Welcome to bigger pockets. Wish you success on your real estate career.

@Brent Coombs you are right.

You know I have even learned that his home has been listed as a foreclosure twice in the past two years, which he should be "motivated" but he still wants to play hard ball. 

I will not budge from offering him what I believe is fair. 

We tend to think that Wholesalers  have excelled in cooking the numbers, but honestly anyone Buyer/Seller/Realtor can be a shady in revealing the truth in their numbers. 

We all have to be vigilant of every deal, and perhaps make use of that "third eye" to help you see more than what is being offered.

Hi @Don Colagrossi and

@Gerardo Dominguez

Thanks for the response. 

Update on the deal, I again spoke to the "interested" seller who I feel is trying to pull a numbers game on me, some what. . You know the "I have another offer on the house"of course at a much higher price of R860k than Im currently willing to pay for. 

I did my research on his property and the purchase price for his property was R550k and not the R700k he previously mentioned. 

Trust that even though I have not been inside to conduct a thorough inspection and estimate rehab fairly, I will say though that a home that has been vacant for the past 2 years may have quite  some work to be done.  

It has potential of being a beautiful home. 

Numbers numbers numbers. everyone wants to win. 

How would you negotiate this one? 

Hi my name is Carol from South Africa

...Pardon my introductory anthem.... but I still have to since im a newbie to the forum and investing in general.

I have recently been exploring the concept of "Driving for Dollars"as well as Direct mail approach. I find vacant or almost vacant homes and leave yellow letters in their mail box. Every time i go out driving for dollars, I make sure i have top 5 homes which i will pursue wholeheartedly and at least to a point where the home owner agrees to talk to me. 

**I should add, Its not easy driving around in a suburban market at 20km/h without one neighborhood watch and insecure resident calling the cops on you, but its fun once they learn the driver is a woman.**

Anyway, an owner of a Duplex home has been in contact with me regarding offer negotiations. He has disclosed that the home has a mortgage bond of $45.8k ~R700k and he owes $7856 in rates. The home is currently unoccupied.

My plan is the following:

1. Meet and view the home before placing an offer.

2. Get a home inspector ready.

3. In the offer to purchase, a contingency clause that will be added is the home inspection.

4. Use ARV calculations to put an offer down.

5. Dont forget the legal team.

Yesterday someone told me something that's still echoing in mind..."Always plan for the worst case" .....and its surely an art to plan for the worst case.

When the offer I will make, is accepted by the seller......trust that i will share the journey every step of the way. 

Hello @Dell Schlabach

True, however i recently purchased a property at an auction for less than half its worth. So it is possible to find customers who are really underwater and those who are not. 

Depending on my farm area, the houses i target are usually known/estimated to be within a certain retail bracket. :-)

The onus will come in my analysis regarding the feasibility of the deal. 

You actually triggered a question, I will find out under which conditions do banks in South Africa file for foreclosure on a home owner. I figure if i can know this, and know the purchase price of the home, i can be able to do the math of how much is owed even before approaching them.

Thanks for the homework. 

Hi @Bhekizwe M. ,

I have currently subscribed to the deeds office in obtaining the owner records as well as know when the auction/foreclosure will take place. Yes this information excludes the amount of default. 

However, it gives me direction in knowing if the houses I view have equity or not. 

I think though im still uncertain, about this strategy as in  how can I be certain that this individual  will follow through once i have settled his debt?