All Forum Posts by: Greg Gaudet

@Lei Lu

Not yet, check back in early September

@Raegan Fortney

So sorry you couldn’t make it, I was really looking forward to chatting w you! It was a great meetup

Hey Everyone,

It's time to resume IN PERSON investor meetups on Maui! Join us Thursday, July 15th at our normal spot at the Starbucks across the parking lot from Target (next door to fork and salad in Kahului) in the outside chairs. If you arrive first please try to save as many chairs as you can. If you're not vaccinated please wear a mask.

The Maui Wealth Builders group was organized by Maui Home Buyers to allow Maui's investors to network and grow together, rather than compete and hurt each other. Please come with an ABUNDANCE mindset! No limiting beliefs allowed :) 

If you have a deal you are analyzing and would like input on please bring all the numbers if you’re willing to discuss. Or if you have completed a deal you would like to do a deep dive on and discuss for everyones benefit, please message me so I can reserve a time slot for you. Sharing a deal is an excellent way to expand your networking. Confidentiality is required, and snaking other investors that share deals they're working on will NOT be tolerated (anyone doing this won't be in business long on Maui anyway), so we encourage open sharing and strive to build trust within our small Maui network. 

Message me with any questions or suggestions for topics or what you'd like to learn about, and please share this with any other active investors you know AND CLICK "ATTEND EVENT" on this page (right below the time and location) so we know how many to expect and have a seat for you!

NOTE: this is a zoom meetup, but I entered it as in person so it would show up when you search for Maui events.

Join us this Thursday 5/20/21 from 4pm-5/530ish to network, learn, and grow your business! To attend, first click the blue button towards the top of this page that says "Attend event'" (this is important! It will keep count of how many people plan to attend so we can be sure to have enough openings for all attendees to call in, and so we can let you know about future meetups), then at the time of the event, click the link below to join the meetup from your laptop, tablet, or smart phone.

There's no speaker or topic. We've found tremendous value in just having open discussion for anyone to share deals they want feedback on, ask questions, share lessons, network, etc. If you have a deal you've done, are doing, or considering that you'd like to discuss please feel free to share and get valuable feedback and experience from Maui's most experienced investors. We require confidentiality in this group, and have a ZERO tolerance policy on this; anyone that does not respect that will be banned from the group (and won't be in business long on Maui anyway, too small of an island!). As the host, I'm always happy to lead by example and share deals I'm working on, as our regulars can attest to. This week I'll be sharing a hot deal that I just got under contract (and I'm willing to wholesale it if you're looking for a flip on Maui!) 

Invite:

Greg Gaudet is inviting you to a scheduled Zoom meeting.

Topic: Maui Wealth Builders 11th Real Estate Investors meetup
Time: May 20, 2021 04:00 PM Hawaii

Join Zoom Meeting
https://zoom.us/j/91630153517

Meeting ID: 916 3015 3517
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Thanks Peter. I wish I knew more. I've never heard of it either, but I checked with another title company I work with and they also said they'd require expungement. 

This may sound dumb, but I always thought of a writ of possession and/or ejectment as an eviction. I just assumed that the seller was issued a writ as the result of a quiet title action (as I don't have experience with quiet title actions, so I don't know what form the judgements would come in); because what other type of action would her attorney have taken to resolve the wild deed? 

Yes, the condition listed on the commitment from title states: 

"Release of record an Order from First Circuit Court of the State of Hawaii to expunge Exception No(s). 7."

Sorry I should've clarified about that part - if we buy it w the cloud then we will plan to complete the expungement after closing. Then the title will be insurable for us to resell. 

But yes, there is a chance, a very slim chance, that we fail at expungement. In which case the only way (that I know of) to clear the title would be to somehow let it go through a judicial foreclosure...

I wonder how much trouble you can get in for having a friend put a note on a property, with the intention of having him foreclose and quitclaim the property back to you? lol Actually I just realized.. depending on the legality of it, that might be a way to clear title on the clouded title condo I own.. it'd be worth the 10k for the foreclosure because it would add like 50k in value haha I'm gonna have to ask my lawyer about that one! 

I thought about that, so I asked. But the attorney can't say for sure (you know, we got the typical attorney answers - "it depends" lol). I think it's a very strong chance.. but you never know what the judge might decide. I'm confident we can complete the expungement after closing if needed, but it's certainly not something we're going to make a 617k bet on. We need a huge discount to assume that kind of risk.. even if it's a small chance, the consequences would be catastrophic. Also keep in mind, the wild deed is only the current problem... if we close w/o title insurance we are fully exposed to any other title issues or any other wild deed issues that could arise. 

Aloha all,

So we're in escrow on a house that had a wild deed recorded on title years ago. The seller went to court and won a writ of possession, effectively clearing up the title in her name. However now that we're in escrow the title company will not insure until the wild deed is expunged; meaning they want it erased from title as if it never happened even though it has been overturned and title is in good standing. Seller wants to close asap, as she sold another house and is using proceeds from both to buy her replacement home. She's not willing to do the expungement (which is ridiculous, bc if she doesn't do it now she's just going to end up having to do it for the next buyer if we canceled). 

Anyway, without getting caught up on the details, I just wanted to ask some really experienced investors what kind of discount they'd want to justify buying a house without title insurance, and known past issues that have been proven false on title? 

The numbers are: PP 617k, rehab needed about 70k, ARV 850k. For me, these numbers are good for a flip, but they certainly do not justify taking the risk of no title insurance. I am requiring seller to expunge the wild deed so we can close, and I am offering to split the cost with her. But she's demanding I close now, as expungement will likely take 3-5 months and cost 5-8k (per our attorneys).

I have purchased a condo via quitclaim deed that was not insurable. It was worth about 100-110k as is and I bought it for 50k. I did a 20k rehab and the ARV would be 150-160k with clean title, and I think I could probably get 100k for it as is. So not a screaming deal, but not bad, and a small amount of money to risk on this. Plus I know the backstory, as I was on the board at that HOA, and I know the chances of the former owner (he's in his 80's if he's still alive and left Hawaii a decade ago) are extremely slim.

Having said this; I'm considering telling my seller I would take similar terms.. about 50% off retail, so around 400k maybe to buy the house as is and take on the expungement myself. 

Thoughts?

The one I have in escrow right now! It's most likely going to be canceled because the seller needs to expunge a wild deed off title. She knew about the deed but thought it was settled, but title needs it expunged to convey clean title and insurance. The seller disagrees (even though she's not a title expert), and refuses to any extensions. She just wants us to close. We keep explaining that we are ready to close, we just need her to follow the contract which states "seller shall make reasonable efforts to cure title defects" otherwise she cannot convey title. It's so backwards.. she's making it seem like it's our fault, and she might actually think it is (depending on whether she is listening to everything I've explained to her or not). Anyway, she's pretty much told us she's going to cancel. 

Another one was a condo a friend of mine referred me to. Seller moved to the mainland after her husband passed and was going to let the bank take it. She owed 200k, it needed 50k rehab, and ARV was 450k. Perfect numbers. That is so hard to find in a place like Maui! Well my friend sent and email intro saying I wanted to buy it, but I never followed up. He later heard that she doesn't not have access to her email but was interested in selling it for what she owed, so I got on it right away then, got her number and when I called her she said she had just accepted another offer from another flipper the day before. He paid 200k and sold it for 440k 2 months later. I blew it.

@David Frandsen

I don’t know yet, we haven’t actually submitted the request yet but it sounds like it could take a while