All Forum Posts by: Dell Schlabach

I'm trying to understand what options I have to gather more information regarding an abandoned home in a neighboring town.  The house has been vacant for a couple years and is in a nice neighborhood (values around $400k to $450k).  JP Morgan Chase did hold the mortgage, but recently I saw that it was sold to LSF9 Master Participation Trust. 

I'm not sure if that is a bank, or some other entity?  I'm assuming the house will go to foreclosure at some point but I'm not sure how this recent change affects my potential next steps.

Any help, or advice, is greatly appreciated.  Thank You!

In Illinois if you purchase a foreclosure or auction property, you may be liable for up to 6 months of past due HOA fees. Totally common. Its how the HOA catches up on missed payments by the previous owner.

As for this sale, you are off the hook. They want to sell the property, not waste time with a buyer who wants out. 

Let me just start by saying the tagline for this post is a little misleading... obviously people still do this business... So I have, what I think is a pretty SOLID deal under contract and have approached some buyers about the deal and the all say the same thing... "I'm not buying in that area". From everything that I've seen and read about investing a SOLID deal is a SOLID deal regardless of location.... I want to lay in out and see what you guys thing.. WHAT AM I MISSING

DISCLAIMER: This is not a solicitation for a buyer just more advice(for the admin)

the house is a 3/1 on a slab... Its currently occupied and the tenant is on housing(so the rent is all but certain) and pays $750/mnth. there are no repairs needed cosmetic or structural... Granted the house is in a C to C+ neighborhood but it is the nicest house on the block. Tenant pays all utilities.. appraises for 68k sales price is 65k(no repairs needed).. Tenant is to remain in home after the sale..

So that's it.. Someone tell me what I'm not seeing..

Be Blessed

All I feel bad for continuously asking questions.

I hope you will entertain more.

I keep getting calls from motivated sellers suddenly. I found this old sweet lady. So innocent, sweet, tired of her house and wants out. She has NO idea how much her house is worth, and at one point she gave me a ridiculously low offer. 

I told her she should never do this... and I asked her to get her son involved. I felt so bad for her. 

At the time I would never consider entertaining an offer so low. I will not take advantage of people.

But now that I do the numbers... I am shocked to discover that my max offer is in that low range.

The house is just that old, it needs a ton of work.

So I am asking you all what you all think?

THe house is so old, thee is no way to make it look new. But is that what we as rehabbers are trying to do?

What would you  change?

I am wholesaling this but I need to know how much it will cost to "fix it". But then to what extent would you fix it?

THe floors are messed up, walls are messed up, ceiling ... MESSED UP!

If someone bids on a property at auction dot com, wins it (Reserve met) , gets cold feet, and backs-out (they have 24 hr period in which buyer needs to send out earnest money/ proof of funds and and close it within 30 days) .. This was user's first ever time on action dot com bidding. So far, Back-out is approved by action dot com (contract person forwarded request to supervison and sent following email.).... They have also removed hold from my Credit card... Is buyer off the hook at that point ? Or Action dot com and/or seller can come back with law suit or judgement ? The property has been listed now again on auction dot com

Also, Who's responsible for HOA fees if buyer purchase the prop ?

Email from action dot com---

"I want you to relax and know that this email serves as confirmation that you have cancelled the purchase transaction for the above reference property. You are no longer financially responsible for this transaction."

I've run into a roadblock. I've been seeing some houses that are fixer uppers requiring anywhere between $20-$40k in repairs but the purchase price is very attractive and would come out with lots of equity after the rehabs done. I've got private money at 8-10% interest or hard money at 12%. 

I'm trying to run the BRRR (buy renovate rent refinance) strategy. Securing the money for the purchase is no problem, and I could lump the rehab into that borrowed private or hard money but the issue is that when I go to refinance I will have to get a loan to pay back both the purchase and rehab costs. A loan that pays back both would mean the properties would still cash flow slightly but not really enough to make it all worth it.

If I didn't have to pay off the rehab with my refi and instead just refinance enough to pay back only the purchase cost these properties would be cash flow kings. 

Is there any way to creatively fund (and pay off sooner rather than later) a rehab without having to include the pay off into the refinance loan?

My initial thought was credit cards but adding on additional debt paydown + interest after a refinance with no way (at least I think) to pay it all off would kill cash flow for a long time.

I was also quoted 20k by two different groups for a whole house remediation that wasn't that bad of a mess, just in one room, but supposedly there was mold all over. They seemed to be charging a ridiculously high price for a <2k sqft house. I ended up demoing the house since it wasn't that good a quality house, and am dividing the lots. good luck!