All Forum Posts by: Carraig Stanwyck

Agree. No phone call, no deal.

Thank you Steve, that makes sense. When an HOA lien is purchased and the home foreclosed, is the primary mortgage still the responsibility of the borrower like the example you gave?

If so, it would seem that banks would prefer investors buy HOA liens over tax liens because at least with an HOA lien, they still have a means to get their money back in due course. (though it seems like if they wanted the property bad enough, and they had enough agents to sit on every courthouse steps on the same day of the auction, they'd bid their properties up at the tax auction)

I'm sorry for taking this thread off track, but I really do not understand the polar opposite views on this topic.

-C

Eric Michaels. First, I don't appreciate the personal and unprofessional attack. I didn't attack you or anybody else. Logic of a 9 year old? Really?

I have only been here for 2 weeks and have been completely engrossed in reading the forums. What I've seen is that 9 out of 10 posts is about some 'grey' area. It seems that's where the money is made. Even read the post where it was recommended to send MMA fighters into a house occupied by squatters to 'encourage' them to leave.

I know almost nothing about REI except that my two rentals weren't very good deals. But as you state, this is less about REI and more about ethics and morals.

Say you posed a survey to the general public about the practice of wholesaling...or tax liens... What do you think the average Joe would think about it? Do you think they would find those actions ethical? They will pass judgement regardless of how investors justify it.

I guarantee that many people would find the fact I paid half what a car is worth to buy the car, knowing the owner wasn't educated on the full value, was completely unethical.

K. Marie Poe feels comfortable in HOA liens because she knows that the banks ultimately have recourse because the property is theirs. Whether or not she buys an HOA lien, the end result is the same...the bank gets the property.

In fact, I bet the HOAs would disagree that the practice is unethical. To them it is good fortune because the HOA fees are getting paid.

There are two sides to every story.

And I agree that intent is important. Should investors buy tax liens with the intent to cancel out moneys owed to other institutions because the tax liens erase most other liens? Is that intent to erase a lawful obligation okay? I'm not one to judge in those grey areas, but it seems the other lenders are getting a raw deal.

Vignette:

Investor #1 - Buys HOA liens with the intent to pay back the HOA. He feels bad they are losing that money, knows he can recoup it through rent, and understands that ultimately, the bank still gets the property. The only thing that has changed is that he did a good deed by making sure the HOA was paid.

Investor #2 - Buys HOA liens with intent to make lots of money without regard for anyone or anything but his own interests.

Outcome - Same

Does the intent change which one is the dirtbag?

-C

I'm still new here, but isn't that the entire premise of most real estate investing?

Instead of wholesaling, we should offer free advice to the homeowner that they could easily make a few bucks because we're ripping them off by offering them pennies on the dollar for their property.

For something to be an amazing deal, it usually means that somebody is being taken advantage of. Just bought a great car recently on CL from a naive owner and picked it up for about half of the state-assessed value. I paid asking price... didn't even negotiate. Is that unethical because I was lucky and just happened to get to her first? Should I have encouraged her to pull her ad and relist for thousands more (still under market value and still would have sold immediately)?

God forbid anyone forecloses their tax liens. Putting those poor people on the street. How unethical, taking advantage of the homeowner's financial difficulties.

If you are working within the law, then you should feel justified. If you believe the law is wrong or that certain loopholes need fixed, then make your vote count to change the law and fix the problems.

-C

Might use something like airbnb.com where you can actually see reviews on individuals who have done it before and possibly make more than sticking with a single long term tenant. Automatically covered for up to 1mil in damages if using that service. I didn't even know it existed until I read a different thread on the topic yesterday. It seems like a good model.

-C

Greg,

I have two rentals and have done the same exact thing. I did not start off actively investing. I grew up with parents who said to always have 6mo PITI reserves and to never sell a house once I bought it. My two rentals are my first house and my wife's first house. Probably not the best investment properties, (one breaks even after PITI and PM and one is $400 over PITI on $1400/mo rent). So while I am learning much more about investing on this forum, I am pretty happy with the 6mo cushion.

-C

Jon Holdman. Thank you and everyone else for the replies. I currently do live in Texas but work looks to be taking me either to KC or Tampa. Either way, I am not ready to buy...still have too much to learn.

Thanks everybody for your input!

-C

First, to introduce myself. I am really new here and soaking up a lot of information. I currently have 2 rentals, only because my parents raised me to never sell a home after I bought it...to just rent it out. One of them breaks even each month after PM and the other is about $400 over expenses including PM (not even close to 50% on a 1400/mo rent based on what I've been reading), which I thought was great for a SFR until reading about the 50% rule on this forum.

Oh well. Learning a lot, and have been scanning CL looking at the various postings to see that most would never fit the 2%/50% rule.

And then I find one like http://kansascity.craigslist.org/reo/3154117441.html. If the link is blocked, search Kansas City CL for posting 3154117441. This guy has a full duplex listed for 25k and is talking about how it is, and I quote, a "CASH FLOW MONSTER".

First thought that comes to mind is, if that is the case, why isn't he keeping it? All sorts of sirens go off in my head. I'm not looking to buy right now, just learn, and this one screams scam to me.

Do all good deals look like scams? Or are there just that many people trying to pull a fast one to get out of big repairs coming up?

Would appreciate insight from the awesome educators who participate here. What a great forum.

Regards,
-C