All Forum Posts by: Duke Marquiss

A home like you used in the first example may be a buy and hold.  You can see if you can buy subject to and then spend minimal amount for rehab for rental and hold for the long term.  You save your cash that would be used for points, fees and high interest on a Hard Money Lender for a better deal.  If you can get the property under contract, you may want to flip to a buy and hold buyer.  $1-2K for the assignment.  I try and monetize each lead.  Looks like you are doing good.

On higher priced homes you can stretch the numbers quite a bit and still get a good paycheck.  Just remember that Murphy's law always comes in to effect.  I have purchased upper end homes as high as 80% less the rehab costs and due to the rising values and execellent condition that we put out the back end the homes will sell quicker than a similar comp that is still being lived in  or has not been cleaned up.  

One of the things that most starters don't do tha I think is most important is to hire professional cleaners at the end.  Make sure the windows are cleaned inside and out and leave the screens washed and secured someplace.  It makes the houwe look bigger and brighter.  

Good luck, you are on the right path and asking the right questions.

Cuyahoga County, Ohio

There is a judge there that code violations are his favorite and is not lender or absintee friendly.

@Bob Malecki I agree that it is entirely different in each state and some states by the county.  Just have to know your state.  Ok is fairly receptive.  Don't go to Chicago or certain counties in Ohio.  Detroit is just tough for a variety of reasons.

I listened to an economist at a convention a couple of months ago that was asked about investing in precious metals. He recommended that you buy cocaine, at least you would feel better while it killed you. You only make money if you buy low and sell high to someone that thinks they are buying low.

Thanks. I am kind of like a cat, if something moves, I seat at So if have questions, just give me shout.

If you can avoid those states that require judicial foreclosure, do so at all costs.  NY time to foreclose is 3-5 years.  PA not much better.  FL over one year.  My favorite is TX. They not only have an express lane to the death chamber, they have one to the courthouse steps.  Did one in 36 days to final foreclosure with no post sale redemption.

I have been to all of Eddie Speed's courses.  Paperscource, and Noteworthy symposiums will get you further down the road.  Find a good attorney and pay him to help you get started and stay close to home to begin with.  Discounted non performing notes are fun to deal in but are not for the faint of heart.  My partner and I purchased 91 notes in our first purchase.  18 different states and we new nothing.  Eddies seminar's helped us a great deal.  I think that if I had gone there first, I would not have purchased the notes we did and look at what we would have missed out on.

I have found that Tom Henderson, The Note Professor, provides excellent material on Time Value of Money.  You can google him H&P Capital Investments.  He has a Note buying hand book and a monthly newsletter for a reasonable cost. 

Papersource has good education at a reasonable price and their symposium is a great place to learn and network.

Bottom line, learn and enjoy.  The thirty thousand that you will spend on a boot camp or seminar is better spent on buying a note.  Find out what your pain tolerance is and then execute.

You will win some, lose some and break even on some.  Main thing is that is fun.  I today's environment, you can drive down the street and look at the property from the comfort of your home and can search on comparable sales at the same time.

Enjoy/ 

A little over 3 years ago, a friend of mine that new that I purchased mortgages, came to me and said that he had purchased a second mortgage with a face amount of $1,150,000 secured by 51 Town Homes in a nearby town.  We purchased for $720,000. The original first mortgages were held by 51 separate mortgages that were in default and foreclosure was started.  Original borrower was a nonprofit entity that had built the units in 1995.  They had made it past the required time period to keep the units  for low to moderate income tenants.  They had not made a payment since 2002.  A quick calculation showed that more than $2,000,000 was owed on the second mortgage.  The sale on the first mortgage was a total $1,800,000.  We redeemed the first after the sale and started renovations - any Section 8 tenants would remain, we could not evict without cause for a period of 3 years from the sale.  Our average cost on the units was $55,000.  Our rehab cost per unit is around $15,000.  Sales average $130,000 and rents average $850/month.  We will hold 25 units for long term rentals.

Buying defaulted first or second mortgages is a great way to acquire properties for flip or hold at a price that you can't get any other way.  I like Area 51!!!!

"If you aren't scared, then you aren't doing anything BIG."

Mix of 2 and 3 bedroom 1-1.5 bath townhomes with a one car attached garage. Professional management is in place.  Several are rented to Section 8 tenants at near market rents.  These are part of a 51 unit project.  This project would work great for a 1031 exchange.  Buy as a full unit and spin off as you need them for cash or trade and get great cash flow while you wait.  Cheyenne is the State Capitol of Wyoming and is the Hub for      I-25 and I-80 as is served by both the Burlington Northern and the Union Pacific railroads.  Located just 70 miles north of Denver CO.