All Forum Posts by: David Dachtera

As others have said, it's TV. So, take with a block of water softener salt.

No one who botches estimates as badly as this couple could reasonably expect to survive long in the rehab / fix-and-flip business. So, they likely take their real numbers, modify them for some "nail-biting realism", then pull it off safely in the end "smelling like a rose".

Ami reading you correctly? Can you not do sub-metering or individual metering for the units in a Wisconsin / Milwaukee multi?

Sellers think THEY determine the asking price. You need a tactful way to remind them that THE MARKET determines the asking price.

It may be wise to go in armed with recent sold listings showing the price that they sold for, especially if you have any that would be ideal comp.'s for the seller's home.

In the end, though, you're looking for sellers who NEED to sell, not those who (think they) want to sell.

"Fall in love" with the deal, not the property!

Remember to run the numbers and make sure those area rents cover the PITI and management costs, plus your profit and any other expenses. You didn't mention taxes, so thought I'd better bring that up.

Someone mentioned subject-to.

I'd actually recommend a sandwich lease-option.

The title never transfers, so the lender has little reason to call the loan.

You take a lease-option with option to sub-lease.

Fix up the HVAC and anything else it needs to be tenant-ready, bring the loan current if need be and put it up for lease-option. Prepare all the needed disclosures NOW so there's no argument later.

Get someone local who is familiar with this technique. A good RE attorney, preferably.

The Yanceys teach this. Maybe advertise on Craig's List for one of their students.

Gonna have to help us out here, Victor.

Can you provide more details? Which house has the contract? Who are the parties to that contract? Do you have a foreclosure home picked out and ready to make an offer on it?

Fill us in...

If you go by the State of Illinois, we're viewed as barely a step up from pond scum. In this state there are some very narrow windows during which you can even think about evicting anyone due to summer heat or winter cold. We have "professional tenants" who pay the first and last month, maybe a deposit, and then they live in your rental unit for free for up to two years or more while you try to get them out. Vetting potential tenants is practically a science here.

Good ol' Lisa Madigan... (IL Atty Gen'l)

@Shelly Smith ,

You can also seek out local REIAs (Real Estate Investor Associations) in your area and network with local folks who actively doing deals.

 Yes - as always, vet things through your attorney!

 There are two ways that real estate is sold.

You probably live in a trust-deed state. At closing, a trust is established such that the lender has the right to take the property back should you default on payments. Title ("deed") is held in trust and not conveyed to the buyer until the loan on the property is fully amortized (paid off).

In a mortgage state, title is conveyed at closing while the loan on a property is tied to the lender's lien on the property by a financial instrument called a mortgage. Mortgages are a bit counter-intuitive because the buyer ("mortgagor") gives it to the lender ("mortgagee") while the lender gives funds to the buyer (indirectly) to give to the seller to make the purchase.

In either case, you're signing legally binding contracts. So, an attorney is ALWAYS recommended, but in a mortgage state, it is required. In fact, you can even give your attorney your limited power-of-attorney and send the attorney to closing while you do something else.

Hope that helps. It can be confusing.

I'm hearing lately that BofA - including all the other banks it's acquired - are getting more aggressive about DoS.

I have, however, heard of a way to deal with that: sandwich lease option. Title remains with the original owner, you take a lease with right to sublet and a purchase option, then lease-option with the end person.