All Forum Posts by: Jared McCullough

I would take a look at this thread. Not sure if it is 100% applicable but I found it to be something I was unaware of. I never did unfortunately get an answer on the topic though.

https://www.biggerpockets.com/forums/580/topics/630491-inheritance-tax-on-a-house-bought-in-llc-at-judicial-sale

Lol am I doing this right I feel like I always struggle to get anyone to respond to my posts...?

I got a bad apple at a Judicial Sale last year that has basically become a full renovation after one thing or another surface. Currently I am looking at contracting out the majority of the exterior work just for sake of time and my own personal fear of roofs. All costs depicted are materials and labor combined and I have vetted the contractors work and he does quality projects. The current break down is:

(2) Prehung Exterior Steel Doors - $800

5 x 10 wooden deck w/ staircase - $1000

Vinyl Siding entire house (i.e. 1100 sqft house) - $3000

Metal Roof - $4000

Total = $8800

This being said I am not use to contracting work out so I was unsure if this seems inflated or is reasonable? My rough estimate would guess that this is pretty much even split for material/labor. I did get one other quote but the guy was at $7k just for the roof.

Jared

 I never once implied that the method  you suggested does not work. I as well as many others I am sure are very happy that their are experienced individuals who post on here on a regular basis. All I was suggesting is that in many areas finding a 200k house that can generate a cap rate of 11% is going to very very hard if not impossible. I completely understand your argument I was just suggesting that for those that have specific target areas (i.e. not willing to invest all over the US) getting a monthly rent value high enough to reach the 11% may not be realistic. To reiterate what works in some areas does not work in across the country but never did I imply it does not work at all.

My apologies as this is an older thread but having purchased a property at a Pa County Judicial Sale last year I was wondering if you could give me some guidance into understanding how I would find out if any of these liens/taxes you speak of exist. Before purchase I went in and looked at the lien history through the recorders office but I too was under the impression that all liens were removed upon purchase. Is there anyway there could still be an outstanding lien on the property and how would I find this out?

Also moving forward at future judicial sales do you have any recommendations for a "newbie" in how to properly vet a house out to make sure that these liens do not exist?

Jared

@David Krulac 

My apologies as this is an older thread but having purchased a property at a Pa County Judicial Sale last year I was wondering if you could give me some guidance into understanding how I would find out if any of these liens/taxes you speak of exist. Before purchase I went in and looked at the lien history through the recorders office but I too was under the impression that all liens were removed upon purchase. Is there anyway there could still be an outstanding lien on the property and how would I find this out?

Also moving forward at future judicial sales do you have any recommendations for a "newbie" in how to properly vet a house out to make sure that these liens do not exist?

Jared

I would not touch anything in the New Kensington area. The market is saturated with cheap homes, plenty of homes sitting open for rent, and generally has a bad reputation. Most local investors are going to know this and avoid. I regularly see houses in the $10-$30K range but don't even bother because of what I previously mentioned.

Looking to buy a cash purchase and then finance to get my money back out. I currently have an LLC with (2) other members and would prefer to get the loan through the LLC but would be willing to do a personal loan through one of the members if the rates were better and/or the loan was easier to process or could be quitclaimed to LLC.

I was hoping that many of you who invest in the Pittsburgh area who have more experience may have some recommendations of options that you think are best. Feel free to PM me to avoid any conflict of site rules if that is an issue.

Bump for any advice .....

If you are BRRRR and you have the upfront capital it should be as easy as buy/rehab the first one in cash, get your money back out through LOC or COFR, do the same for the second, the third, and so on.....

As long as your able to have this capital locked up for the time it takes to acquire and assuming you kind find houses that meet your capital criteria there is no reason this can't be done in a fairly quick fashion. 

Others use the method of financing and then using the increased ARV of the house to make their capital then reinvesting the gained capital. Both methods are viable and are the driver for being able to grow the portfolio quickly. Otherwise you are waiting on how fast you can grow your savings.