All Forum Posts by: Chris Karley

I got TLO skips from two separate freelancers on UpWork. Provided them with name, auditor mailing address, and the property they own. I'm having a VA dial and its looking like about 1 in 20 numbers is correct. This is equates to a contact on 1 in 5 leads or less assuming best case. Does this sound on par with the results you guys are getting from TLO? Are there better options out there?

Just curious, have you or your partners closed any deals?

First and foremost, be very clear in any marketing or reaching out to investors that you are selling the contract, not the property. Following those guidelines you can post a listing on craigslist or Facebook Marketplace (leave the address off). There are a number of large wholesaling and cash buyer facebook groups out there to look as well. I learned its best to find those buyers first.  

Another option is to pull recent cash/sheriff sale transactions in the area.You'll probably want to narrow your search down to commercial.  From there you can skip trace and find your investors. Youtube has some great instructional videos on this strategy. 

Depends on the specific situation. I would mainly keep my eye on two things.... 1. Determine what you think rents, mtg payment (higher interest rate) , and vacancy would look like in a bad downturn. Check your debt coverage using those numbers.    2. Make sure you're redeploying the capital at a higher rate than you're paying on the loan you use. Note: Principal paydown on your next investment property can boost that return % if you choose to include it. 

https://www.biggerpockets.com/real-estate-companies/hard-money-lenders 

No. You can purchase your home (or sell it) without a realtor. They help tremendously in your first deals tho. 

Some lenders do and some lenders don't. I'd do the research for yourself and determine if its right for you. There's a lot out there on this subject. At the end of the day the bank WILL have the authority to call the loan so watch out. 

Here's a good thread on the subject: 

https://www.biggerpockets.com/forums/311/topics/154927-due-on-sale

Transferring a property to an LLC would not help with property back taxes. The taxes follow the property not the owner. It would still be at risk of foreclosure.

Depends on the lien.... For example, mortgages have what's called a due on sale clause that stipulates the loan may be called due if the owner is transferred. But even if you can, the lien will likely hold its priority to the property. Even after transfer the lien holder would have equitable right to any sales proceeds. 

I think you're looking for what's called a home equity line of credit (HELOC). For an appraisal of 360-390k and a LTV of 90%, you will be able to tap anywhere from $11,000 to $38000 of equity. The bank will walk you through the appraisal process after they conditionally approve your loan. They would be the ones ordering the appraisal.

Thoughts on cashing out.... I think it depends on what you plan on doing with the equity if you cash out. If you can pay down debt that is a higher % than the HELOC interest rate or put it in some form of performing investment, its a good choice. If you plan on buying something you otherwise wouldn't have (i.e. tvs and cars) I would advise against it. But,you put a lot of work into the house so if you'd like to enjoy your equity now instead of later, that's totally cool too. But remember the money isn't free.

If you have PMI, you will want to talk to your bank about having them pull the appraisal to have that removed (if your numbers are correct).

I wouldn't start worrying about your property ownership until talking to banks and knowing your options moving forward. They may be able to get creative based on your specific situation. Having the property in your name shouldn't be a big concern if your assets are limited and you carry the proper insurance. If you get to a point that the bank will need the property in your LLC, they will help you through that process. Not so easy if they come up with a personal loan option and you have already transferred to your LLC......