All Forum Posts by: Javier D.

@Jahbari McLennan

I’ve purchases several in Florida. Do your due dilligence.

Hubzu whom used to be ocwen if i remember correctly does not do any code enfocement/liens abatement. You are purchasing as is. Do not buy sight unseen as they dont do much to deter vandalism etc. Also keep in mind there is an additional fee they charge when you are the winning bidder(3% or something like that) so include that in your numbers. Listing agents are impossible to reach too.

@Steve Johnson

https://www.vertex42.com/ExcelTemplates/rental-cash-flow-analysis.html

Compare the two. See how long to recoup difference over the fixed term of your loan.

@Laura Williams

Here in south Florida FPL does free assesments for efficiency. I dont know if there is a similar service from the utility company in your area. They check insulation, appliances, areas letting the elements in etc.

I avoid replacing windows as they can get expensive. If I do replace, i like to piggy back it with other work to reduce cost. GOOD sealant goes a long way.

@Wayne Brooks

I had a bank claim on a quiet title action on a house a few years ago. I remember they reimbursed us for the tax deed sale cost as well as repairs we had done. Forgive my ignorance as i am not sure how it was worked by my partner whom specializes in that arena. Ill try to find out.

@Asmaa Ahmed

You need to speak to an attorney. Hoa are a second position lien.

When buying tax deed sales or other auction style properties due dilligence is required.

Associations in florida are to put it simply scumbags and will try to collect(much more then they are allowed to fine per law) prior to first positions moving from lis penden to foreclosure.

On a side note if you repaired the property in the time you owned it always put a lien while you do quiet title. Most of the time big institutions will do a payoff to you.

Sorry to hear this happened to you.

Lien search=250 bucks

Losing a house to this= masters degree in buying at auctions.

There is profit in everything.

Speak to an attorney whom specializes in quiet title. Dont give up just yet.

@Peter T.

I like that. I do something similar. I got into a big commercial property now after passing on quite a few that didnt cashflow at 75-80 ltv. Lenders and agents would say just to put more money down so it cashflows. Incredible. I have alot to learn but that perception scared me.

I dont think people overleveraging are ignorant or anything negative just havent experienced a reality...markets are cyclical. Some do know it but are cash heavy as well and fail to mention that to your average investor reading these threads.

It is scary reading how someone owns 150 doors cashflowing 100 bucks a door. Then again,

If they bought in 2012 they probably made couple of million bucks if they exit right now.

Again, Id hate to be a monday morning quarterback but ive gambled before and lost my shirt. I wont be a victim to a banker who 18 months before was fishing with me showing me pictures of his kids and after saying sorry i cant work with you and give you terms to survive a couple of years.

Good morning BP. In no way is this a doom and gloom post. Watching the stock market lately and seeing how great the RE market has been since the crazy 08 crash I have been analyzing my properties to see how a market correction/crash/apocalypse would affect me. Since 2014 i have controlled my leveraging maybe more than some. I am naturally an aggressive investor and strongly believe in the power of leverage. Real estate shines in this arena. My south florida market looks overall healthy: overconstruction is heavy in the condo market, 1M+ market is cold. Rates are going up but there isnt much inventory. Unemployment is low(then again we will see how this continues). This post is to see how my fellow investors analyze a hypothetical down market. Can i survive a 15% vacancy rate? A 20% loss of value? Can my multifamily properties cashflow if interest rates go up 3 points 4 years from now? Have i been dipping into my reserves with the mindset” ill put it back when i sell this flip or parcels”. If my helocs get frozen will my portfolio survive? I had this conversation with a group of friends here whom are developers, hml, vp of a public reit. Deep pockets just buy more. They buy...well maybe yours..

sorry if this was long winded. Id love to know what everyone’s strategy is in these hypothetical scenarios.

@Robert Biggerstaff

I have thought about this so much. My perception as of today is to not reinvent the wheel. Charge market rent or up rent annually to get there. Screen prospective tenants. A quality tenant isnt molded by me. Quality ones move out no matter what for x amount of reasons. My job is to give them a quality property and not abandon my responsibilities as a landlord i.e. service calls etc. Ive lost alot of rent being scared of losing a tenant.

Not worth it in my eyes.

@Eric Healy

I would Refi to amount where cashflow is still 25irr year1 and get into a duplex or 4plex with cash out. Buy smart so you dont have to sell stupid.-Javier

Just made that up. Clever I know. Lol.

@Javier D'Espaux

Correction 2” faux ones