All Forum Posts by: Jim Wineinger

It almost must be a long term plan as most properties picked up this way (tax sales) have a reclaimation period during which it would be unwise to do any improvements as the courts may not approve their repayment by the reclaimer.

I have a property now that I am fixing up. Original cost 1376.00 for a 3/1 in need of extensive repairs. Most repairs now done but still ongoing. Estimated retail value 125K but will have costed about 50k total to get it that way. Not using HML or PML to do this has taken me 3 years, let me say 4 because it wont be completely done until the end of the year. But then I can recoop my funds for other such ventures IF the economy holds for sales. Or just hold this for rental income to provide funds for those future deals.

I am doing it on my own at a level that I can handle so my debt can not possible overwhelm me.

But the same thing should be able to apply to any foreclosure sale by knowing the principles involved and developing a repore with them.

Of course, the way you fund it is up to you and your abilities. I can not go that route as of yet.

I do understand your point totally, and do not like the way we are heading as it is capitalism and not socialism (or the government) that actually provided the wealth the masses, making us the richest nation.

If all the capitalism shuts down the government would not have anywhere to get their monies from. It is only the greedy ones that should be punished and not everyone (mom and pop types). But policies being enforced by the socialist types are punishing everyone by taking more and more from them.

This thinking by the government (because they NEED more) is why I suggest that their policies are going to mean that we have not reached the bottom, as the false bottom they are providing is going to collapse. And then they may see that they must support the mainstay of the capitalistic society by removing those policies that drove most of them out of the market. But this will depend upon us electing those that are of like mind IF we can find them these days.

Actually, even according to your post previously in the same post the banks gave away that money by not requiring collateral, which encoraged people to just walk away when they could no longer afford to pay.

The banks are now being punished for their behavior, which by the way was enouraged by the government, which I will never trust!!!!!!
They will recieve their just rewards in the end.

And you will see that we are in basic agreement on how to do things if you read my statement on the very last line.

But then again, those who are used to these small towns are used to travel what is necessary to get thier income necessary.

And if you are able to purchase properly (low enough) you can gain a reputation for providing "starter homes" for those youngsters as they move out. They could be as rentals or rent to own or even owner financing which will produce a continuous income which goes along with your growing reputation in that town as the one to come to for your resonably priced homes.

The mindset of the small towns are what you must get past. Once they get to know you (reputation) they will begin to grow on you and you will be able to turn more homes at less profit but which will produce more in the long run. So you must treat those small towns as long term investments to be successful there.

Economically, I will disagree with this statement.

WE never take any money from the government! THEY take it from us!!!!!!!!

And yes, I do agree with what I believe you were attempting to say. I just hate the implication of those words. It sounds as though the government owns the money and allows us to make it. When the reverse it really true. We made the money and we allow the government to take it. Their desire for more and more in upcomming years is going to be very hard on the middle and upper classes.

So I guess that leaves it up to us to elect the right people. IF you can find them.

Dont forget that when falling you usually cant see anything at first (because of the clouds) then comes the trees that hang you up for a little bit (false bottom) then the final fall to the actual bottom (ground).

That last one usually hurts worse than the rest.

When the first talk of a bottom begins we are usually just stuck in the trees where too much activity breaks the branch we are on to begin that small but painful final fall.

I do not know the answer, but let me give one possible secenario that seems plausable to me.

He attended the foreclosure sale and noted the properties that did not sell and who owned them (bank) and who represented them (attorney) at that sale.

You then, immediately after the sale, but before they leave the courthouse, approach the lawyer and get his information to submit an offer for the property. If it is the best that the bank thinks they can do they may agree because it also reduces their need to pay their REO "agent" commission which in turn reduces the loss for them if the price is reasonably close to what they would have gotten thru the REO listing process.

I use a similar process at tax sales for what may become surplus property for counties.

This may not be possible in the case of homeowners insurance, but as far as most of those extended warrenties for fridge, dishwasher, ect. I find out what the cost of the insurance would be and deposit that amount into a savings account for replacements and find that I usually have more than enough to repair or replace the items when needed.

This is basically the same way the insurance companies make their money, because the amount they get paid is more than what they have to pay out over time. I refer to it as my "self insurance" savings account. You must be disiplined and not spend any of what looks like extra because you just might need it at any time.

I wonder about the HELOC. I agree that it is a good way to go, but be sure that you look at all the fine print.

In mine there is a clause that states that the monies that you get from the HELOC can not be used to purchase another property. Not sure how they could tell this but it is there. Maybe that is why that persons 300k Heloc was called due because it was the same bank and they could prove how the funds were spent!!!!

I purchase properties at tax auctions and my bank wanted to call mine due to to purchasing a property and when I informed them that I am not purchasing any properties (just liens on the properties) they had to relent.

Now due to the foreclosure process on those liens I have a couple of properties in my name that were purchased with those HELOC funds.

Jesse, That might not be true. I have seen several pieces of property that were sold at auction that had a bank listed as a lienholder(pary of interest).

At worse case you should be able to recieve interest on the monies that you spent on the property. And some banks do choose not to throw good money after bad (especially in these economic times) and do not redeem the property for the landowner and thus they both loose out.

Very good buys can be found and had at these tax sales when you have learned how to do your due diligence properly and many deals can be had that are not great but good.

There are definately pitfalls to watch out for but if you are willing to take the risk they can be more profitable than most other real estate dealings.