All Forum Posts by: Darin M.

working on that as we speak @Mark Gallagher.  They countered back and we are working on the final number and specifics of the purchase.

@Sam Shueh  Currently the bank still owns the note which I am trying to buy.  On the three different exits, I see a worth while margin of profit at each.  I could clean up the ownership and sell to another flipper as is, I could rent it out after rehab or flip it and make a good profit margin even with delays thrown in for good measure. 

Just a quick update, offer has been made and waiting on their counter. The last time we talked, we agreed to me purchasing the mortgage from them and getting a quit claim deed from the property owner who has agreed to this upon said purchase.  

@Victor Jernigan  Thank you for the recommendation on Attorney Terry Adams.  I will reach out to him here shortly.   As to Admiral, I actually am using them for another property later this week that we just finished up.  I am glad to hear you hold them in high regards.  

In checking with city records, there is only one lien which is attached to the taxes and it is from the city for lot clean up which will be have to be taken care of and is not much of an issue.  Also, only one mortgage recorded at this time.  

As to tear down, it might be.  We are going to go deep into it here shortly as see what we can do with it.

In the end it all comes down to price.

To everyone here thank you tremendously. 

@Bruce Lynn Back taxes are less than $400, rehab is going to be close to $55,000, Flip it,  As to the "two deed transfers back to back"  I am not sure I understand your statement (due to my own lack of knowledge, What am I missing)?

@John Underwood  So pay the tax lien, get a quit claim from the owner, and the mortgage released for a fraction of the cost since the bank has already written it off.  Very valid.  I always appreciate simple.

@Chris Seveney Will definitely take this into consideration.  I have been granted access to the property and the most important thing to remember in any unfamiliar space is watch that first step.  if the plywood had not been there it would be a 6 ft drop to the basement.  There is no sub floor....  and the bank knows it is bad but they will get updated photos.

@Patrick Desjardins Like I said above, I do like a simple process but will make sure everything is handled properly.

@Andy Mirza The confusion may be on my side for describing the situation, but I am trying to get it cleaned up.  The bank and I will be talking again around the 1st of August and come to an agreement number. 

Is there anything else I have missed?

Evening All,

I want to run a potential property purchase by you to make sure I am working this in the correct procedure in buying a note directly from a bank.

I found a house recently in the neighborhood buried in the trees.

Sent a letter to the tax record on file, got the return to sender response - No surprises there.

Talked with the neighbors of said property while walking the dog (best damn conversation starter ever).

"Why yes",the neighbor says, " I actually have the owners number, would you like for me to give them a call?"  Bingo.

After talking with the owner, owner wants nothing to do with the property but has a mortgage on it that in his words,"He will never put another dime towards" and he had no idea if he has been foreclosed on or not, which it turns out, he had not been.

So I get the name of the bank, and after several rounds and letters of authorization, and the officer being surprised that they had the mortgage still (They had a systems upgrade that purged information...) we finally get to the point of talking about what I could offer on the note as the institution has written off the mortgage (quick side note here the owner decided to do some remodeling work and took out the floors, subfloors and a few other walls so understand that this property is really nothing more than a shell at this point and will need all new systems, insulation, drywall, etc  you get the picture, full tilt train wreck).  We have agreed to talk here in a week after I get a chance to get inside of the property and work up the rehab numbers.

The bank officer recommended that they would sell me the note to the property while coordinating the processing a deed in Lieu of Foreclosure with the current mortgage holder who has already said that he would gladly sign over the property. 

Before purchase I will make sure to do a complete tax, title and liens search.

I do have a complete plan for rehabbing this property for sale.

I know the area market and what it can bear as I am closing on a house next week in the same neighborhood.

So Questions:

1. This is a NPN, what would be an accurate offer %if it is known as going straight to Deed in Lieu? I have a couple of ideas but would love to hear your thoughts.

2. The note is approximately $30,000 that has already been written off on their 2016 taxes and the ARV of the completed property is about $94,000

3.What question am I not asking that I should? (and yes I will consult with a lawyer about this. Anyone know a good Foreclosure Lawyer in Knoxville, TN?)

As always, thanks in advance!

Cheers,

Darin

@Jen Rogers  Horrible.  All of the activities to do outdoors, people always lending a helping hand, weather is not boiling hot,  too many breweries and you never have to wait for 2 hours to sit down to dinner.  As you can see it is just dreadful.  hahaha  We are loving it.

@Jen Rogers I can vouch for @Chris Eaker he is a great guy!  He has helped my wife and I as we are getting settled into Knoxville.  Feel free to reach out if we can be of any help.   @Chris Eaker we need to hit the crafty bastard up here shortly and trade some more tales of deviant GC's and old houses.

Knoxville if you are going that high.  Either 4th and gill area for a Historic home or out west somewhere if you like to shop and have all the convenieces.

Damn, someone got removed.  Hope all is well @Benjamin Barredo.  Best of luck with your testing!