All Forum Posts by: Ethan Dugan

Hello BP!

I am in northwest Ohio looking to do small scale operations only to find investment properties purchased creatively. I am looking for experience and feedback from folks that have used the following software programs to filter data to a hyper-focused list that can then be confidentally and aggressively nurtured. In order to do this, I have come across Propstream's list automator, Batchleads list manager and REISift. I am sure there are others as well.

My main goal is to have inbound marketing, but understand I need different options working at the same time. So, I plan to procure a tax list, run a vacancy check, tag by list type (probate/divorce/backtaxes/foreclosure/absentee out of state, etc) and find those that are vacant and with multiple tags. Then skip trace those smaller "stacked" lists to save on marketing costs.

If anyone is doing something similar on a small scale, would you kindly offer your feedback/experience with these different options (or others)? 

I am looking for something SIMPLE. 

Thanks so much,

Ethan

Hello BP!

I am a newer agent and investor and I am working with a local wholesaler in the Toledo market and there is a deal that can be taken subject-to the existing loan with the sellers requesting 9K up front. The wholesaler is flexible on the fee as to whether it is all up front or some now and the rest (more) on the back end, depending on if the property is resold immediately or I lease option it. That said, I am looking for a few pieces of advice in addition to anything else that would make this a smooth transition. I would like to put the house into a trust, with my LLC as the beneficiary and do have paperwork but no experience with this type of transaction.

The sellers (3 siblings) have requested a letter of intent to purchase and are working with a lawyer as this house was in probate for 3 years. I intend to send the letter this week.

1. For structuring the deal, how would he assign this properly as only a partial cash offer? is it a standard assignable contract? An option? My other thought is to just use seller financing for the PITI each month and put the money in escrow to be paid to the loan servicer.

2. With the purchase agreement being signed and assuming a subject-to, I believe I need to have an authorization to release information, a loan information sheet and a lender payoff request. For the closing, limited power of attorney, a letter appointing a management, assignment of escrow, acknowledgements and disclosures for the seller to show they understand what they are signing, land trust paperwork, notice to the lender?, assigning a trustee with a declaration and affidavit of land trust (Will plan to use the title company for this part) and an assignment of beneficial interest.

I want to do this right, so please share your experiences and comments. 

Thanks so much,

Ethan Dugan

iLink Real Estate Co.

Hi Andrew. Thank you for the detailed response; you made each tool's perspective use very clear . My mind was more focused on the equity loan rather than the HELOC. In NW Ohio, for example, there are 80% equity loans @ 4.25% fixed interest rate for 15yrs on an investment property that come with a $300 closing fee. I was informed by the bank that these require no liens to be on the property.

It is good to have so many options to allow us to take action. Thank you again for detailing the process.

Ethan

Great thread! For comparison, what would be the advantage of this strategy over just pulling out 80+% equity through a home equity loan with fixed term and rate? Does the refinanced lien method just allow for a lower interest rate, in general? Just trying to put perspective on this as I just purchased a home with cash and placed it in a trust with the title company. I am now looking at next steps to pull out dollars to put to work.

Thanks and I apologize if I'm just not thinking clearly and the answer is obvious in multiple ways.

Ethan
Realtor- iLink Real Estate Co.
Bowling Green/Toledo, OH

Benjamin - Thank you for reaching out. I will contact you. 

Michael - Thank you for the advice and for sharing your experiences. I am watching a few on the MLS that may be pursuable, but it is all in the details after inspection. I don't have a trained eye for calculating rehab cost so I am currently avoiding the disaster homes. Foreclosures are where I am watching alot: sheriff sales, auction.com, hubzu.com, etc. The sheriff sales particularly seem to have appraisals consistently below the current market values of comparables. In addition, they are starting bids at 2/3 that appraisal value. Obviously, a deal can quickly not become a deal, so I have to set a max bid and stick to it without becoming caught up with the bids. I'll have to save the major overhauls after I feel comfortable knowing a few good handymen/contractors.

Speaking of which, are you not getting good recommendations from the meetups? Have you used a handyman instead if the work is light/doesn't require a permit?

I think the refinancing issue you experienced should be solvable now with local banks or working with Benjamin - Yay! That is a very interesting experience you shared; I can only imagine. Well done and getting past it and moving forward. 

Have you networked with any local wholesalers? They may already have loyalty to other investors, but I will add that option to my list.

I just finished David Greene's BRRRR book and it lays out sound strategy for the process and it takes it to an advanced business that runs like a well-oiled machine. Definitely a good read if you want clarity on strategy for each stage and he breaks down questions to ask to get the most out of a meeting/interview.

I will be at the June 11th meeting and hope to meet you there! It would be great if we have some happy updates to share.

Hello fellow Toledoans and Investors.

I have recently ventured into real estate and made a post about testing the waters by networking for a house flip. This is still on the radar for experience purposes, but I have started reading highly rated books, attending PIN/REIA meetups, making solid headway to attaining my realtor's license and looking at the markets more and am eager to be successful using BRRRR.

Are there others finding success with this? 

I am looking alot in 43606, especially Sylvania/Douglas for the hospital and University goers, Maumee/Pburg as well as 43614 near the Beverly school. I grew up in 43623 and will consider that also. Most searches have been through zillow, auction.com, hubzu.com as well as donrose/pamelarose auction sites - plenty to see. I have attended a sheriff's auction and will be attending one tomorrow, for better or for worse! 

I would appreciate feedback on any local banks that have short seasoning periods and low origination fees for moving forward with refinancing, assuming good credit and no debt.

I will be checking with glass city federal credit union and Genoa bank this month.

I also want to say thanks to Bigger Pockets and the Toledo investor community for having a system in place to support new people like me, so we can traverse through the maze of real estate. I look forward to being able to settle in a niche and tune the noise out.

Thank you for your time.

Ethan Dugan

Engelo,

Many thanks for the supportive words. Right now, it is all that is on my mind and I am pursuing an agent's license. So much great information that I am absorbing and looking forward to applying what makes sense for me.

Ethan

Bigger Pockets Members,

I am looking for a career change as I realize I have a strong desire to work for myself and feel more in control of my future and potential. I work full time in an analytical lab and would like to connect with someone in the Bowling Green/Findlay/Toledo area that is house-flipping. I am new to the market and would like to work with either an experienced person or fellow newbie looking to explore this space.

My background is unrelated to business, but my (initial) beneficial skills would be property research and information collection. I am also frugal and know how to slickdeal flooring, appliance & renovation costs via facebook marketplace, craigslist, store clearance. I am very excited for an opportunity to learn together. Please let me know if we can help each other.

Thank you!

Ethan