All Forum Posts by: Derriel Cribbs

Thanks for the input and advice everyone. I am going to reach out to a few companies and see what options are available. Your guidance and information is much appreciated!

Thanks Jay and Derek! I think in my mind what makes it tough for any HML would be that it is an auction and not something we can get under contract. Auction.com lists the property as cash only, but also has mention that "in some cases hard money loans can be accepted" but doesn't go into any detail on if this property qualifies for that. I was hoping there may be a company that specializes in this type of niche funding.

Greetings all,

I have a unique deal and I am exploring the possibility of using a hard money lender. Is there an HML that will loan a relatively small amount as low as 25-27% of the deal? I will be putting 130K cash into the deal and would need about 45K. The tricky part is, this is an online auction for a local home, so we have to have proof of funds after winning the auction. The house needs less than $10K in reno, mostly in AC repairs and pool pump. We would have it back on the market in less than a month, so I am okay with paying a 3-month interest minimum.

I realize it is -- or may be -- a unique scenario, but can anyone shed some light on anyone doing deals like this?

Thanks so much!

-D

Hi neighbors!

I have purchased properties exclusively at courthouse auctions, and had good success with them. Recently flipped one of them for a nice profit and began looking for the next. There was a favorable property a month ago at courthouse auction that I was interested in, but couldn't make a play on it until this recent house closed. I missed the auction date, but realized it is listed on a live auction on Auction.com. I am not a fan of that site and it's manufactured ghost bids, but I have done so much research on this property and it is a great deal. I want to go for it, even on the site it is listed on.

That being said, it has always been my understanding that a property that goes through the court system and does not sell to a third-party bidder at the courthouse is then taken back by the bank which MUST clear title of liens and encumbrances. However, it is concerning that just over one month from the courthouse date here it is listed on auction.com. 

So, can a bank not sell at courthouse and then immediately list on auction.com BEFORE clearing title? I have seen a lot of REO go to auction sites, but never so quick. I want to bid on this house but I do enjoy the comfort of knowing bank should have cleared title on it.

There are no back property taxes on it, and no other defendants listed on the court case other than the homeowner. Would I have an opportunity if I win the bid (due diligence period?) to do a title search or will any liens be disclosed to me?

Thanks for the help everyone. The speed that this one was listed on an auction site after courthouse has me confused as they normally are pretty slow to do that.

DC

Hi neighbors!

I have purchased properties exclusively at courthouse auctions, and had good success with them. Recently flipped one of them for a nice profit and began looking for the next. There was a favorable property a month ago at courthouse auction that I was interested in, but couldn't make a play on it until this recent house closed. I missed the auction date, but realized it is listed on a live auction on Auction.com. I am not a fan of that site and it's manufactured ghost bids, but I have done so much research on this property and it is a great deal. I want to go for it, even on the site it is listed on.

That being said, it has always been my understanding that a property that goes through the court system and does not sell to a third-party bidder at the courthouse is then taken back by the bank which MUST clear title of liens and encumbrances. However, it is concerning that just over one month from the courthouse date here it is listed on auction.com. 

So, can a bank not sell at courthouse and then immediately list on auction.com BEFORE clearing title? I have seen a lot of REO go to auction sites, but never so quick. I want to bid on this house but I do enjoy the comfort of knowing bank should have cleared title on it.

There are no back property taxes on it, and no other defendants listed on the court case other than the homeowner. Would I have an opportunity if I win the bid (due diligence period?) to do a title search or will any liens be disclosed to me?

Thanks for the help everyone. The speed that this one was listed on an auction site after courthouse has me confused as they normally are pretty slow to do that.

DC

Hi Paul, and welcome!

Aaron is right on with all points. I would just like to add that each deal can often bring a unique scenario. If dealing with private investors (i.e. not banks) it is so important to talk to them and find out what their expectations are. You may offer too much of the pie to them -- not out of greed, per se, but maybe out of eagerness to get the deal. If you give up too much of the pie you cut yourself out of some much needed resources in case a deal has unforeseen issues or things you didn't anticipate. And that happens. Like, a lot. The important thing is to always be fair and build that relationship on a good foundation so that it can be nurtured. I have a guy that lends private money in some of our deals and he puts up all the money for the deal and only asks for 33% profit after the sale of the flip. He never wanted to invest in buy-and-hold, but over the last year or so as he talks to other people, he is now leaning toward diversifying into some holds. I like that think that the relationship of trust we have grown has made him feel more comfortable investing with me, and that in turn gives me more of an advantage when chasing deals. 

Basically, what Aaron said, but make sure to ask private lenders what their goals and desires are, it shows you are vested in helping them as much or more than yourself, which goes a long way towards getting deals done. 

Good luck!

Yes, I am on mobile and don’t have my notebook with me, but those are approximate measurements. It is a single story home, both bathrooms share a wall containing the plumbing.

Hi Jim (and everyone else!)

I hope this works, it’s an Imgur album with a few pics of the bathrooms. Thanks for all the suggestions, keep them coming!

https://imgur.com/a/G25avHg

We just picked up a new flip home, built in 1960. Everything is going well in this one, but I want to do something in the bathrooms, but feel somewhat limited. Home was built in 1960, but is in great shape. Bathrooms need serious love though. Walls are tiled halfway up with tile, and floor is done in that old-school mosaic 1" tile. From experience I know that tile is in a thick grout bed. I would really like to do these bathrooms (one is coral and turquoise, and the other is pink and grey) without tearing out the tile on the walls and floor. The floor is less of an issue, can cover that as it sits. However, I have heard differing opinions on painting tile on the wall. Anyone have any experience doing it successfully? I have heard from a couple sources that a TSP bath, paint the grout, then a primer on the tile topped with an oil based paint is the ticket. However, before diving into it, I wanted to see what others have had success (or failures) with.

Please advise, would like to get this right and avoid the headache of ripping it out. 

Oil? Latex? Acrylic?

Tile is ceramic, for what that is worth. Paint would be something neutral, if not white altogether.

Much thanks, you guys are awesome.

 I really think it was an honest oversight on her part, she feels terrible and had no idea that it would have gotten that bad. Blame on me too for not doing my own checking into it! She works hard for us so I will keep her around, but no more deals like that! (unless we end up making a pretty penny on this one, haha)