All Forum Posts by: Holli Phillips

Nathan,

I think you are correct on the whole distressed thing.  Our "mentor" rated all the properties we looked at before the sale and he didn't think this one was really that bad.  I am learning the difference now!  These surplus properties are a whole new ball game because you really don't know the condition of these properties until you go to sell them or rehab them.  

We have been advertising to anyone interested that we can do seller-financing.  We paid $6000 for the 2bdrm and $4200 for the other two combined.

We'd hate to invest anymore money into them at this point.  Wish we had the capital to do that.  

My husband and I decided to invest in some properties last summer from our county surplus sale.  We had a "mentor" that got us into this and charged a fee for his guidance.  The whole idea behind these were to buy them and then sell them on contract.  I had posted about my experience with this in another post and was told to ditch this mentor.  Which, I have since done!

I am now finding myself in a situation where we have 2 out the 3 investment properties left and I can't sell them to any wholesaler around for anywhere close to what we paid for them.  It blows my mind what wholesalers buy or offer to buy properties for.  I thought we got a great deal at the sale on some of ours, but I am seeing things differently now.  I have a wholesaler telling me to take their offers because we are going to lose money regardless and the longer we hold them, the more we will lose.  

One house is a 2brm house in a decent area, not super distressed, comps showing in the high 20's.  I can't even get $6000 for this house..

The other one came with two parcels, one with a 1bdrm house and one with a converted garage stripped down to the studs.  This one comps out around the same for each lot.  I can't get close to $7000 for both combined.  

Am I missing something here?  

I paid $6500 for this house at a surplus sale and sold it on contract for $25,000 as is at 10% interest.  

Thanks for everyone's feedback.  I completely understand that this "mentor"  got me in this bad situation.  He constructed the land contract, one that he uses and charged me a fee.  This was a realtor that I had started working with on his team, so I trusted him.  I just transferred my license to a new brokerage.  I am a newer realtor learner all this investing stuff and how these things work.  I trusted him.  

There was no deed that was signed or anything like that.  

She is late on payments because she has so many repairs or things going wrong with the house.  This house was sold to her as-is.  The accessed value right now is at $50k.  It's off Evanston near the fairgrounds if anyone is familiar with the area.  It's actually low crime area.  I could rent this thing out in a heartbeat.  The buyer is currently living in it.

Is there any possibility of selling the note to another investor that can financially get this turned around.  The tenant is actually a good one, but just keeps trying to push out her payments because of having so many repairs.  

a so called "mentor"  who got us into this whole land contract thing has been doing this for 14yrs and has 30 some properties on contract.  It was not done at a title company and didn't not have a closing.  She signed the contract stating what she owes for how long and for how much.  We are the bank financing the purchase for her.  The mentor that got us into this said it did not need to be recorded.

We did a contract for deed sale.  (Seller financing)  I need to get this recorded before I can start the foreclosure process correct?

This past August I sold an investment property to a lady and gave her 2 months before she had to start making payments.  She put $1200 down and have only received one monthly payment of $600.  As of Jan.1, she will owe $1800.  I told her that I needed her to move her stuff out and that I was going to be selling the house if she did not catch up by January 1st.  What would be the best and easiest way to go about getting her out?  I do not have keys to this house because she replaced doors when she bought it.

How many investors do you work with?  Local or out-of-state?