All Forum Posts by: Andrew Clark

Bare with me...

Key facts:

Shane bought a home in 2006 with a Countrywide mortgage. Countrywide recorded their lien using the incorrect 'legal description' of the property.
Shane stopped paying his mortgage somewhere in 2008.
Shane sold his property to Daniel in 12/2009 for $25K cash. Daniel did NOT get title insurance or have a search completed (a bit fishy).
I purchased said property in 3/2010 for $60K cash after I had a title search completed (free and clear) and purchased title insurance. It came back free and clear because Countrywides incorrect legal description of the property did not link this mortgage with the property.
Countrywide decides they should pursue a foreclosure against Shane. They realized their 'legal description' issue and miraculously correct it. BAM!!! All of the sudden there is a mortgage on my once free and clear property.

I have already rehabbed this property and have a closing date set with buyers utilizing the 8k tax credit. I've been advised if I am not able to sell this property, the buyers will sue me for their 8k tax credit loss and their re agent will sue for the loss of commissions.

My question is, what right does Countrywide have to just 'update' their originally incorrect filing. Keep in mind, their update didn't happen until two deeds after their original owner. I understand when a mortgage is granted the grantee signs documents agreeing to help correct any typos and filing errors, but I didn't agree to any of that. I understand Shane was trying to pull the wool over everyones eyes (probably in cahoots with Daniel), but I want to know if this magic mortgage appearance is legit or will Countrywide have to eat this mistake once pressured?

I am meeting with my lawyer in the morning to sort through this mess.

For as much of a mess this is, I am looking forward to getting knee deep in new information. You can't learn this in a book!

Any advice will be greatly appreciated!

Thanks!

Andrew

My first mailer I sent about 85 computer generated letters out to boarded up home owners. About 15 were returned to sender and about 10-12 calls were generated over the next 3 months. One of which led to my first wholesale deal. The owner originally wanted 75K, I said call me back if anything changes... she called 2.5 months later and said she wanted 20K but it was negotiable. I signed a contract on it the next day for 16K and sold it for 20K about 10 days later.

I hand wrote the addresses on the envelope, changed the Dear XXX and specific address to fit the homeowner and printed them on 100lbs stock white paper. I hand signed each one. I also added this line at the end - PS. Even if you aren't interested in selling, I would love to hear from you!
I don't know if it helped but I wanted every person to feel like I wanted to talk to them - which is true.

Hope this helps and best of luck!

-Andrew

Jason, welcome to BP!

You have come to the right place for solid information. If you send me an email or pm I'll send you my Purchase Contract and Assignment Contract. I've had my attorney review both and haven't had any trouble using them. Both are one page, to the point and with protection if the deadline is approaching. The goal being to close EVERYTHING but just in case, you are protected.

I created these contracts myself from a myriad of others I've found on the net and from other BP members. I am not an attorney and would suggest you have your attorney review them before using them.

I am in Raleigh, NC but feel free to contact me or better yet, POST ON BP!! with questions.

Good luck!

I am wrapping up a rehab and looking to start another one or two as soon as possible. I'd like to stay with in Wake Co, specifically Raleigh. Location within Raleigh, scope of work, style of house (SFH, Multifamily, one level or more...) aren't important. If the numbers look good, I am interested. Tax value doesn't mean much, I will do my own research to verify values

Criteria:

Location: Wake Co, specifically Raleigh, NC
ARV: <= 150K
Purchase price: 60% - 65%

I am not interested in how much you have the contract for, if the numbers work they work!

My contact information is listed below.

Thanks, look forward to working with you!

-Andrew

I am still hoping to get a response to this post. Any advice is greatly appreciated!

Thanks

-Andrew

I am working on my first deal and will be signing the Purchase and Sale Contract tomorrow afternoon.

Because this is new to me and I haven't dealt with this part of the wholesaling puzzle I realized I have a couple questions...

At the signing tomorrow, what documents should I be asking for from the seller? Definitely the Existing lease (it has current tenants) what about Rental Payment History? Title Ins docs? Anything else?

Also, the contract I have drafted up has my lawyers info as to where the final transaction will take place. From what I've heard the end buyer usually will use their own lawyer - not mine. Should this contract clause be changed to something generic like "The closing shall occur on or before XXX , at buyer’s attorney’s office, unless such other time and place shall be agreed upon." ??

Last, I've presented myself as a cash investor to this seller and haven't mentioned anything about possibly selling this contract to another buyer. I want to be upfront about the process but I am having trouble finding the words to explain my contract considering I WILL sell the contract - there is no MAY about it.

Hoping this signing goes smoothly. I have a great rapport with the seller, I just don't want to seem like a rookie :)

Thanks for all your help!!!

John,

Unfortunately, I don't have any experience with re development yet. My suggestion would be to use the search bar to look up your interests. I realize this is a bit of a simple response, but honestly, I use the search option constantly and am always amazed at the information available for free here.

Hi John,

I am an investor focusing on rehabs. What avenue of real estate are you interested in?

Eric W - Did you find a simple way to calculate repairs? I found a couple properties that need complete rehabs - down to the studs. I don't have a quick and easy multiplier to use. Is $10/sq foot a good number? I have seen others use $15-$20. I know all of this depends on location and actual repair needs, but is there any way to come up with a solid repair figure (+/- 5K) for a full rehab? These houses need everything from roofs, heating, plumbing, electrical... the works.

Eric M- Thanks for all the great information :) As a super experienced wholesaler, do you have any suggestions?

Thanks!

I can appreciate your frustration Ben. I too, am looking forward to my first wholesale deal.

Jon - I have a question about your post:

Much of what I have read advises not to get involved with agents listing properties because of fees and paperwork. Are not most if not all the properties on the MLS listed by agents? Also, in reference to the dozens of lowball offers, are you presenting the owner with an actual Purchase and Sale Agreement or do you have a simple 'Offer Letter' stating your intentions - or maybe just a phone call?

Thanks!