All Forum Posts by: Neil Sinha

Thanks to both of you.  I appreciate the sentiment.  And yes, Ray, I would like to see any templates you can provide.

It's a good question and I'm trying to get to the bottom of it.  The code inspectors have files on the property but they're all marked closed.  They placed $350 liens on each, but that was for the cost to secure them from vagrants.  I haven't found any records that they're outright condemned or due for demolishing, but I need to get the actual code inspector for our area on the phone.

@Daniel Baker I know what you mean.  Thanks.  I am trying to avoid being irrational by just running out and throwing money at this.  The hard part is wanting to get out the starting gate and seeing what may be two potential opportunities right in front of me and then thinking "Those are probably too hard, leave them alone."  Balancing the different competing motivations and perspectives is hard.  But for discussion sake and since a picture is worth 1000 words, here are some images of what I am talking about:

And this is the property right next to it which is overgrown:

So in general, I'm trying to find out whether the first is a case of just being better off knocked down, or how else would I play this if rehab is over my head.  Secure a good price and wholesale it to someone who could do the rehab?  Doing nothing just doesn't sit right if I'm trying to get in the game.

@Tyler Libby what type of professional should I get on site to give their opinion?  Would any general contractor do, or should I look for someone with particular expertise?  I feel like starting here could be risky, but they're just down the street from my primary residence and the two are right next to each other, owned by same person.  I have a vested interest in not having broken down houses in my neighborhood, and if I can turn a profit all the better.  I'm just worried about trying to approach the owner if I only want to take the better one.  Hard to say I'm a problem solver if I only want the easy work.

@Ray Lai that's exactly my goal: position myself as the one to help.  I was trying to find advice on how others have done the positioning and convinced vacant property owners.  Since I'm thinking like you that there's no financial benefit to holding vacant properties, I wanted to know what the other reasons might be.

@Rick Pozos  Thanks so much for your perspective and I'd love to talk more since you're local.  I'm not going to wait 2-3 years.  Once I've got capital ready, I want to start moving out instead of just dreaming.  I tend to think strategically, so I envision where I want to be and act like I'm there.  That's why I'm looking at entity formation: it's how fully functioning investment enterprises act; not as sole proprietors.  But you're right about the marketing engine.  Besides entity issues, Tracy and I are brainstorming our marketing pieces, too.

Hello everyone.  New investor here.  There are two vacant houses on my street I'm considering for my first investments.  On one there is a large hole in the roof that's been there for years meaning there is probably significant water damage and mold inside.  Being new to this, how do you gauge what type of remediation and rehab is needed in a situation like this?  Are there ever types of damage that make a property a lost cause because they can't turn a profit?  Sorry if that's a dumb question, but don't want to get in over my head right out the gate.  Thanks for your perspective.

@lloyd stanton

I've found multiple corroborating records online that show he's at this address.  My goal with this post is to figure out my negotiating open and potential closers before I step to the door.  If I know some potential reasons people hold on to vacant houses and how to convince them to change their minds, then I'm not walking into this discussion half-cocked.

For example, if he's been holding them to get a tax write-off which he won't get when he's signed over title, how can I frame the sale as a bigger gain than the write-off?  Or if his goal was to pass on a portfolio of properties to his heirs, what's the advantage of passing on cash instead?  I know he will be the one to set the true reasons and motivations, but the better prepared I am to have answers and solutions up front, the better chance of closing.

Hope that makes sense.

Hello.  New investor here trying to get my game plan in order.  At the end of the street I live on are two vacant houses, one with a gaping hole in the roof.  Researching in property records, I find they (along with several other properties around town that seem vacant on Google maps) are owned by an orthodontist that lives about 10 miles away.  He acquired them in the early 80s, all the liens show released, and google searches of these two addresses show other names; indicating he likely used to rent them to tenants.  They are in disrepair and have city code liens for having to lock them up to keep out vagrants.

My question is this: I get yellow letters myself from investors seeking to acquire property in the area, so I can reasonably assume someone has tried to make offers to him before on those properties.  I want to know what motivates someone to hold vacant houses so I can see if I can use that knowledge to advantage in a negotiation.  It would be plausible if he bought them in the 80s in a different regulatory era that he was offsetting his orthodontist income with passive losses.  But then property management became too much of a hassle and he gave up.  If he hasn't sold yet even though he could, what would change his mind?

Anyone have similar experiences with real estate "hoarders" that own property with no clear goal for it?  How do you convince them it's in their interest to accept an offer?  Thanks for any suggestions.

Hello.  I'm Neil.  My wife, Tracy and I are establishing our investment enterprise.  First became intrigued with real estate about nine years ago while living in Florida.  I got sucked into Rich Dad, Poor Dad products and books and attempted to move on a deal and lost my earnest money through some shady transactions.  I then put things on hold, had kids, moved to Texas, got divorced, etc.  But now that I'm re-married to Tracy, we're making a go of it as a dynamic duo.  We're hoping to buy and hold for cash flow with a slow and steady approach.  Avoiding wholesaling and other quick-turn schemes unless there's a clear goal to generate capital for follow-on portfolio holdings.  We're in the early stages of lining up capital, a professional network, entity formation, etc.  Any advice or support to someone in my stage and my area is appreciated.  Best of luck to everyone in their endeavors!