All Forum Posts by: Ray Slack

Okay.. Explain the entire situation and I'll tell you what you have to do.

Questions:

1. You have purchased a property through an HOA foreclosure or a condo foreclosure?

2. You say 6 months have passed since you purchased it, Correct?

3. What are the total approximate HOA/Condo judgement? vs the assessed value of the place? Many Judges will throw out a foreclosure over a small judgment.

4. Usually these properties in condo or hoa foreclosures have mortgages on them. Did you pay off the first mortgage yet? is the 1st mortgage in foreclosure? 

5. I'm assuming no attorney was appointed at a guardian.  Correct?

Your basic options are;

1. You can get a clear title through a quiet title suit.. 

2. You can also re-foreclosure the property and then properly appoint a guardian  for the seller. 

3. You can try to find the prior owner and pay them to sign a quit claim deed over to you.  I usually offer them $5,000 as that is about what it's going to cost to clear the title via 1 or 2 above, but getting the seller to sign a deed is much quicker.  Option 1 or 2 above can take 4-8 months.

Ray

I have bought foreclosures in Miami Dade for years.. To answer your question it really depends on the judge. I have bought foreclosure where they gave me Cert of Title and no objections were filed. I went in an started rehabbing the property and then the prior owner filed a suit saying they were not served and had no knowledge of the sale and the judge overturned the foreclosure sale. Judges can do whatever they want basically. Your only safeguard is to get title insurance which most title companies will review the foreclosure and insurance if the foreclosure process was followed correctly. I can't really tell if you are asking a general question or about a specific deal you at working on or looking at. Many foreclosure attorney's take short cut with the foreclosure process especially on HOA / condo foreclosures. If the prior owner is not found they really not to appoint a guardian ad litum to represent the owner. If that was done you are probably okay to get title insurance. But remember title insurance covers you for your purchase price. NOT any improvements/renovations you put into the property.

FHA says you must move in within 60 days.. . On the other note.. I'm sure you can get one of the tenants to move.. It's all about the Benjamins You say it's a 4 plex. I would offer each tenant and earlier termination / buyout of their lease. Start with 1 month's rent. Give them a week to decide if any of the 4 units take your offer.. Then if they don't bite, tell all 4 of them you are going to increase your offer by $100 per day until one of them accepts but once one bites the deal is over. The first to agree gets the cash.

If you did't want to play it the nice way. You could comb through each lease and make sure no one has broken any of the terms. Think Pets or extra people / relatives that have moved in.  Also, check overnight guests clause.  Most leases define that an overnight guests can only stay x nights per month.. Many tenants meet boyfriends and girlfriends that start spending the nights often and violate this clause. Also review each lease application with a fine tooth comb.. Call all past employers listed and check and make sure they worked the dates they put in the application and made the exact salary they claimed.  Lying on a lease app is grounds for terminate.

Katrina,

I'm pretty easy to become a member. You just need a relative to have served in my of the armed forces, ,DOJ or several other government agencies.  My uncle is retired military. Therefore my mother (His sister) was able to join.  Once she joined. I was also to join as her immediate family.

Yes. Unless the landlord is paying the electric bill

Depends.. If you are using basic baseboards go to Home Depot.. For taller or more custom look either Florida Lumber or Shell lumber in Miami

My HML doesn't send a 1098.

What a basic question. I'm doing 2015 taxes before the deadline.

Purchased a flip in 2015 and got a hard money loan and sold it in 2016. 

Since it wasn't sold until 2016 it's not reported on 2015 tax filings. My question is would the interest paid to the HML in 2015 be deducted in 2015? or would it be deducted in 2016 when the house was sold?

Thanks

Ray

H

3 quick questions.   I setup a solo 401k and wanted to confirm something.   I am personally listed as the employer and employee.  I know I can contribution $18k as the employee and 25% of income as the employer.  Questions.

1. The employer contribution (25% cap ) is based on my Net profit on my Schedule C after all deductions. Correct?

2. Both the combined Employee and Employer contributions are put on line 28 of 1040 together right?

3. I'm thinking of starting a S corp this year and paying myself that way. Do I need to have all new documents created for my solo 401k plan since the employer would be changing from myself (sole prop) to my sub chapter S corp?  Or can I just create an amendment to the plan docs?

Thanks for any input
Ray

Another Suggestion.. Are you buying this through a realtor?  Most Real Estate Agents have a contractor they can call that will do this for a small fee.