All Forum Posts by: Dominik Gajor

Were you able to find attorney? Please let me know. I don’t want to start another post.

What do you think of collecting rent with Apple Pay, Pro and Cons? We had a tenant give us a first payment through Apple Pay and we had it in our account in a matter of few hours. The negative part of this transaction is that now tenant has our phone number. Is there anything we should know about Apple Pay as a rental payment option, do you guys recommend or not.

My question to you is exactly as in the topic. The reason I ask is because the bank agent refused to submit our offer. After my agent told him he's required by law to do it, eventually he did or he says he did. Also he would not respond to us and confirm he got our paperwork. I understand that we're submitting much lower offer then their asking price but how do I know bank said no to it. Do I trust what he says or is there a written bank rejection to our offer?

1. How long is that preliminary period for owner occupants to place their bids before investors can jump in?

I'm looking to flip the property in NJ which is being sold by the bank in the as is condition. I believe this house at some point had an oil tank which was replaced by the gas furnice.  What I want to know is how do I find out if the oil tank was removed/decommissioned properly? To my understanding tank can be pulled out or filled with sand. In the event when it is filled with the sand, soil should have been tested and report/certificate generated. Where can I find/pull this information from? I don't want to get stuck with the problem of digging out the tank and soil decontamination which could get pricy really quickly and turn the deal into a dissaster.

@Ned Carey

I was able to upload the title pdf file to my file place for viewing https://www.biggerpockets.com/files/user/Dominik/f...

As far as the contract is concerned there is not much info on the website, the files they posted there are samples so I cannot go by them, here are the details:

"Transaction Details:

• Buyer will not be charged a Buyer's Premium for this property.
• If you are the Winning Bidder, an Earnest Money Deposit of 5% of the total purchase price or $2,500 (whichever is greater) is required.
• Buyer may receive a Special Warranty Deed or equivalent if Buyer is able to purchase title insurance without delaying the closing (title fees typically cost between $500 and $1500 and are based on the purchase price of the property). If buyer does not purchase title insurance, buyer will receive a Quitclaim Deed or equivalent, with no express or implied warranties of title.
• Buyer is responsible for all escrow fees typically ranging from $850 to $1,375.
• While this property is reported to be vacant, buyer is responsible for obtaining possession.
• Any delinquent HOA/COA assessments shall be paid in accordance with the applicable Purchase Sale Agreement.
• Property is being offered as is, where is.
• Until the seller's reserve price is met, Auction.com may counter bid on behalf of the seller. Counter bidding gives buyers and sellers more flexibility to find a mutually agreeable price. Counter bids do not occur after the seller’s reserve price is met."

I analyzed the deal and it looks like there is a potential there. From few recent comps you can sell this house for 250K being conservative, two smaller houses sold for 255K and 260K within last 3 months in the same community.

Here is how I came with the numbers:

ARV = $250K

Repair = $80K (I'm pretty conservative on this one)

Purchase Closing costs = $6500 (I assumed this one, without potential HOA liens)

Monthly Costs = $2000 x 5months to complete the rehab = $10K

Selling costs = $9000 (I assumed this one)

Agent Commision = 6% of ARV = $15K

Shooting for profit of $30K

It comes out I could go as far as $100K, now if I have to pay all those HOA fees then this price goes down. That why I'm trying to understand those HOA liens and from what you're describing it looks like I don't have enough information. According to the site bidding starts at $60K.

Thanks for heads up on the rental in the HOA community, it skipped my mind.

Trying to find a way of posting a copy of a title it is in pdf

I've been following the forums and listening to podcast for some time now. I slowly want to apply theory of what I've learned into an action. 

Please forgive me if some of those questions might be hectic or not in order but trying to find some answers. I found this condominium on the auction website, they even listed title information there (not sure how common that is, posting a copy of the title as well). From looking at the title how do I know what type of sale is it? On the front page of auction website it says it is a Bank Owned Condo, but I cannot find any details once I click on the property being sold. When I was looking at the title, it mentioned bunch of liens for the HOA ($4K in 2012, $13K in 2014, and $20K in 2015) and in the description it says "Any delinquent HOA/COA assessments shall be paid in accordance with the applicable Purchase Sale Agreement."

I researched a little bit more and found out that in NJ if the auction is for the HOA foreclosure, mortgage is superior to HOA. Meaning if bank forecloses on the loan, house will go to the new owner. Also heard people make some money trying to rent the houses/appts in the mean time until mortgage foreclosure happens. Honestly I'm not looking for this type of arrangement I'm trying to figure it out is it being sold because of the bank/mortgage foreclosure or HOA foreclosure. I have no interest going after HOA foreclosure at this time.

My goal for this property is to flip it maybe rent is as an exit strategy. Currently property looks vacant. My wife worked in the credit collection and was able to trace the owner to a new address. Don't ask me how she did it but she has her ways. I'm not even asking how, I know she's good at it.

Questions:

1. What type of sale is it?

2. Can I determine type of sale from title information?

3. What happens to HOA liens if Bank Owned property is sold?

4. Do these HOA liens are added all together or the one from 2015 is the most current one?

5. HOA foreclosure will only get me a deed to the property temporarily until bank sells the loan?

6. Is there anything else I need to investigate?