All Forum Posts by: Derrick Lind

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $78,000
Cash invested: $22,000

My first real estate investment was a slow remote BRRRR. Totally stressed out when starting out, but everything worked out and I repeated the process a few times since. Five Pilllars realty was a key player for this project. I could not have done it without them. Thanks guys!!

What made you interested in investing in this type of deal?

I wanted to get into real estate investing. Listened to BP podcast with Brandon and David. Thought a BRRRR would be best approach.

How did you find this deal and how did you negotiate it?

I used David Greene's remote investing method. Build your team first. I hooked up with Five Pillars realty in that market. They were recommended by BP and some BP investors that I talked with. The deal was on market. I know.... "there are no deals on market." Not true. Some times you'll find something good. A strong cash offer helps with getting you selected.

How did you finance this deal?

Cash followed by cash-out refi.

How did you add value to the deal?

Relatively minor interior renovations. Paint, kitchen/bath touch ups, etc. Nothing major.

What was the outcome?

I got most of my capital back at the refi. Had I fully seasoned it, I likely could have gotten the full amount back. The appraisal came in at $120k where the purchase price was $78k and $22k reno cost for all-in of $100k. Rates were good at the time and cashflow is good. it was a super deal. This market is typically only slow appreciation, but recent market forces have worked in my favor and I've enjoyed a good amount of appreciation too.

Lessons learned? Challenges?

1. Don't move slowly. I took too long deciding on the contractor and getting them setup.
2. When you buy right, there is a lot of forgiveness in the process.
3. Don't wait to get started. I should have bought rentals many years before. I now tell everyone that I know that they should too.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Five Pillars realty was amazing. True rockstars!!!
Homefront Preservation did the renovations and they were excellent. Straight shooters in terms of pricing and scoping.
Alotta Properties has been my PM since day one and they have been great. Despite various tenant issues.

Join me at How to find and fund the best deals in this crazy real estate market https://meetu.ps/e/M0cHH/2kwX7... welcome all experience levels in an open small group forum.

Love to see you there. 

Free book giveaway too.

Join us for a free book giveaway!  You’ve gotta be in it to win it. See you there. 

Let’s meetup and talk about how we can still be buying deals in this market. It can be done. They are out there and you too can do it.

Join me at https://meetu.ps/e/LX6NR/2kwX7...

Looking forward to meeting everyone and making some new friends in real estate. 

See you there!

https://meetu.ps/e/LPZJx/2kwX7...

Let’s meetup and talk about how we can still be buying deals in this market. It can be done. They are out there and you too can do it.

You can get a title report (of different levels of completion) for about $180 from a couple of website like, US title records.  With the additional cost you might only do select properties. Another way is to look at PropertyRadar or others. Another method is to look at the property records on the county website. After you have done it a few times it gets easier although that has a cost too (your time). 

Look at the draft contract  it will say what kind of title they are obligated to provide.  Most REOs will provide a generally clean title.  If you win you will need to pursue and pay for title insurance.

Local PMs can be a good reference to help with a drive by or walk by.  Few auction provide buyer’s agent commissions too. 

@Carlos Gonzalez, I just looked on Zillow and Redfin. I found a total of 2 MF for sale in those towns. Just 2 in AZ City. Do you see something different? Do you mean off-market?

This county has a webpage with some good info. Two items that are applicable are:

“What happens to liens on the property after it is sold at a Tax Sale?

Tax deeds convey title to the purchaser free of all prior encumbrances (mortgage liens, judgment creditors, etc.) of any kind ​except liens specified by Revenue and Taxation Code Section 3712, Lis Pendens actions and any Federal Internal Revenue Service (IRS) liens that are not discharged by the sale”. This is the one I’m looking at. Other local counties have similar text. Fortunately the irs one kinda works itself out and the others are typically small I think. I’m able to find most of these through some online research but the city/county fines will be harder to find.

“How long do I have to wait to improve or sell the property?

It is recommended to delay any improvement on the property for a one-year period from the date the tax deed is recorded. The owner and/or a lienholder has one year to challenge the validity of the tax sale.” Thanks for the comment Jay. I didn’t see this one. I thought that was the same as the right to redeem. I now see those are different issues. Thx.

So you’ll need to hold for one year, potentially suffer the remaining liens, and have costs for quiet title if you’re to sell it.

Interesting stuff!

Thanks guys for the input. BP is amazing.

@Jay Hinrichs my biggest concern is liens that are not expunged by the foreclosure like HOA or county fines. I expect most will be small and I can just accept it with the lower purchase price.

One example is a piece of land currently on online auction it's 18 acres. It's currently $5300 it's worth much more I believe. I was able to find through my own DD that there is a HOA lien of $4,000. Still a good deal. I found it by using PropertyRadar which is amazing. $5 and I was able to immediately have the lien papers. Confirmed on the county site too but would have had to wait for the document.

The other list has many homes. We’ll see how many go to auction. I agree most will not make it.

I think I’m finding the important stuff but sure I’ll miss something.

I’m also curious about approaching owners that had their properties get listed for a direct purchase prior to auction. Seems like a good approach.