All Forum Posts by: Erik L.

Thanks for all the feedback! It was great to see all the new discussion and it was helpful for me to read through it.

I agree the Portland auctions are pretty saturated and they have lots of buyers present. One group I see pretty often are the Rain City guys who I believe buy on behalf of investors. Those investors pay them 12% for the capitol, so that is certainly not a cheap way to go about it. 

I have also been watching auctions in some of the surrounding counties and I would be happy to get something within one of the surrounding counties. I just want to get a few good deals a year to fix up and sell or rent out. The right of recession period is not great, but having to sit on it for 6 months would be fine for a good deal as a worst case scenario. 

I pulled title on a few deals coming up in the next month and I have a new question. In the title report there is a recently recorded "Memorandum of contract for purchase and sale". How do these affect a foreclosure proceeding? My understanding is that these are to cloud the title, would they actually carry through a foreclosure. After successfully winning an auction, what would I need to do to clear it? @Jay Hinrichs from reading through your other posts it sounds like you have lots of experience in Oregon, how do you work around/ with these in Oregon?

Thanks for the great conversation all.

Good evening,

I just recently passed my Oregon RE license exams and I am looking for a brokerage to work with.  My primary motivation for getting my RE license is to buy/ sell property for myself. Due to this I think a desk fee along with a fee per sale might be my best bet. 

How does the real estate brand affect a houses marketability? For instance if an office has horrible reviews online, do you find this turns off buyers, or do they ignore the agency when it's on the listing side?

 I would like to sell my own home about as soon as I start. I can go with a full service brokerage who will take 25% or I can go with something like Kelly Right with a low per transaction fee structure. In your experience aside from education, (which is clearly a bid deal) what differences should I expect in working for KW versus others like, Re/max, M Realty, or Soldera?

In looking for a real estate brokerage to work for with a focus on your own transactions, what would you be most concerned about? 

Thanks!

Erik

Hello Mike,

I believe the majority of foreclosures are still non-judicial, but we have our fair share of judicial foreclosures as well. I have read several times that this is a shift from years ago when we didn't have them. I don't know the details, but I believe a court made a ruling that scared the banks into it... could be wrong about the reason why.

Yes I mean one that has passed through the court, the court issued a writ of execution and passed it on to the Sheriff office to sell at a court house step auction. I am interested in all foreclosures, the judicial ones are just the ones I have the hardest time understanding the details of.

Hello Jake,

I am not a lawyer, so I am not qualified to tell you what to do in regards to protecting yourself from liability, but I can share with you what I do.

I like to keep rentals in their own LLC's as I think they are the most likely to draw a lawsuit. I understand that there is always a risk of being sued, but I do not want to expose multiple properties to one potential lawsuit. I also think that using an abundance of caution could potentially discourage someone who is looking around for a good candidate to sue.

Another big factor is probably the size of your operation/ investments. My portfolio is pretty small, so we are talking about a few extra LLC's for me. I imagine the big players do not keep single residential units in their own LLC's, but that is just speculation on my part.

Erik 

Hello all,

I am interested in investing in judicial foreclosures here in Oregon and I am wanting to learn as much as possible prior to bidding on one. 

I have read all the forum post related to foreclosures that I can find on here, and I guess I wanted to check my process and invite anyone else to give me advice.

The recommendations I have been given/ read most frequently are:

Have a title report performed as close to the date of sale as possible (2-3 days depending on how long your title company needs) 

Try to find a title company that is willing to sell you title insurance after a judicial foreclosure.

Perform extra searches yourself for any items that are excluded from the title report.

Calculate the expected value based on the best comps.

Drive by the property to get an idea of current condition. Most of the time you cannot enter/ walk around the property.

Calculate a max offer based on amount owed on liens, cost of rehab, closing costs, and with a margin for profit.

If you get the house and there is a tenant, you must honor the contract (if you are not living in it) up to one year. If the owner lives in it, it could take 90 days to evict them without a cash for keys type deal.

Does this all sound about right?

I guess a few questions that come to mind...

1) What percent of the time that the house is occupied do they leave without doing intentional damage?

2) How long after the auction can you start the eviction process? Like for instance you cannot leave from there to post a notice on the door, it takes a few days correct?

3) What type of title report do you all recommend? Stewart Title recommended a $250-300 product similar to an O&E "owner & encumbrance" report that they could then insure... does this sound good?

4) Following this process, what are the biggest hazards I would still be exposed to?

Thanks so much, I really appreciate all that you guys have put into this web page. It is amazing to have a resource like this to read through. It is hard to find books or other online material that is updated enough to rely on.

Regards,

Erik