All Forum Posts by: Evan Wiesner

If you haven't written the offer yet then you can write it contingent upon it being proven vacant with a buyer walkthrough the day before closing. Put the burden on the current owner to get it done for you while having it in contract. The contract might motivate them more to clear the issue for you.

I've also written offers with a contingency of being able to clear the squatters within X number of days. Then you can go talk to them, offer cash for keys, figure out a price that works, and if the price negatively affects the deal you can renegotiate based on the contingency. 

Both are effective if you don't want to go through the courts and think that if the people actually leave that they will stay gone. In my experiences squatters tend to leave you alone if you're reasonable with them, and fight back if you're not.

Private money will do it sometimes, depending on the deal and your track record. For example, I know groups that will do 70% LTV based on the after repair value, and are willing to pay out the rehab directly to your contractor as needed. So if you find a good enough deal they would be willing to front all of the funds as long as you don't cross that 70% LTV number.

Now finding deals with that much meat on the bone is harder today than in 2012, but if you get one then that's a route to go. Until you build a track record with a private lender they will surely want you to have some skin in the game so there's that side of things you have to resolve with them. If it's only 5-10% of all the capital needed for the deal then you're in good shape I would think.

Wow, I've had many a house completely replumbed for only 3-3.5K so that seems crazy to pay 1K for just the inspections. 

There are a ton of numbers missing from your scenario so I don't get what you're trying to do. If you're flipping it then you're missing all kinds of information, it would be a losing bet just on expected offer price (96% of list), concessions (under FHA loan limits so plan 3% of list) and standard closing costs and commissions. If you're wholesaling you can save some of that but there is just about no margin in this scenario.

I would read more on BP than watching videos. I'm not sure your source but unless you're testing wells, radon, oil tanks, whole house, mold, and a whole pile of other inspections you shouldn't be spending $1,000. Better bet, especially if you're flipping, is to get a really good contractor and have them inspect it. Send a basic inspector through to bullet point major issues and as a double check. Test for radon in your area, and adjust from there.

@Juan Carlos Cabrera I'm assuming you're doing this in Texas, which is one of the easier states to do it. Put the house in contract and open escrow. My suggestion is to do it with a realtor experienced in short sales. Remember, the lender isn't legally allowed to talk to you about someone else's loan without a release, which they will probably want to provide for security anyway. Still, they almost never will negotiate with you directly as the current legal environment would leave them open to a predatory issue potentially.

Once you have escrow open then the process becomes easier. It's much more straightforward for the bank, and it will put the payoff in writing. If the payoff truly is a short sale than the seller needs to start that process.

FYI - if they haven't already started the process for a short sale then most banks will require the property to be listed on MLS for a period of time to ensure they are getting the best offer.... again, make sure you have a realtor involved.

If they have already started the process, then you should just need to get it in escrow and in reality, most of it will work itself out through the process. Just stay on top of the filings for the house because your foreclosure process is like a rocket compared to most states.

Go to the county recorder and pull the notice of defaults (sometimes these have different names depending on states). You can also pay realtytrac I believe for some states although it's not cheap. 

Depending on how early you want to get involved you're going to need to go pull the data yourself. And to be 100% accurate you should do that anyway. 

I would always check with a credit union. I've always found better rates and more flexibility than a larger bank or a mortgage company. But that's personal experience and 20+ years with one credit union at work.

If you're looking to build a longer term relationship then it's really fluid. I agree with @Frank Geiger that it would be better to just buy it yourself but that doesn't always work for relatioships.

You could treat it like a JV and use a basic waterfall. Since you're putting up most of the capital the main thing I would do is make sure you're getting a prefered return on the financial side. It wouldn't be unreasonable at all for you to get paid 10-12% interest on the money you put into the deal right off the top.

After that it's a profit split if you're flipping the house. 75/25 or 50/50 would be my suggestion to keep things simple, but only if they are putting in some real work on the rehab. If they are, and aren't taking an hourly wage, then go 50/50 and establish a strong relationship that encourages them to do it again. 

That's a deal that helps keep overhead down on the rehab and increase the profits for both of you on the back end.

I have a LOT of ways I've found people. NRBA, Zillow (there are tricks to it), investor groups, meetup.com, BP, CIX, conferences and a lot of referrals. Where do you want to buy and what kinds of properties? I might have a person for you.

I don't want to simply go along with the group, but please listen to them. Make a full profile, help us figure out who is doing this so we can avoid them.

Homevestors has a 3-4. there are a rockpile of individual ones there. Are you looking for help finding properties or more associates? If it's the former send me a private message and I'll give you a good guy to talk to.