All Forum Posts by: Jim Wineinger

Even in the case of illness, most times it is because we did not clean properly, or did not protect ourselves when out in the sun, and put away an amount to cover for such illnesses that we know from reading that happen soo often to soo many that my choice to not prepare for it is the cause of being in such a position when it does come to me (and it has).

As far as layoffs go, most of the time you can read the writing on the wall for any business that is about to downsize, just as we read the writing on the wall of the decisions made my those who are about to go into financial troubles and we try to get them as much as we can for their house to lessen their problems. This same writing on the wall (unless ignored, a choice) will tell you that it is time to get another job to protect yourself for when and if your job layoff comes.

It all does come down to the decisions you made or REFUSED to make.

This is the crutch of personal responsibility. ONLY I am responsible for my decisions. I may not like the results, but they are my results.

Actually, it does not matter at all. Since we are talking about flip investors what you actually have is 2 comps. The first comp is for the purchase by the investor which will hurt during the short time that it takes the investor to rehap and flip the property. But then comes the resale at the true sales price, which includes the investors profit.

Most homes are on the market for longer than the business investor takes to rehab and flip, since he does this often each year.

What you really have is the homeowners emotional price being brought down by the market forces from the bubble high to the current market prices. I realize that most homeowners will not look at things this way but when they try to sell at their emotional prices they actually end up bringing down the prices of all homes in their area by having to reduce their prices until the home sells at the market prices. It is really the homeowner that is bringing down the market by holding on to their homes because they can not get what they feel that they deserve even though they had offers at the market pricing. Then they find themselves in a position of having to short sale their home which brings the pricing down below market value where an investor steps in and repairs what they would not (or could not) and makes his profit by selling at that market princing that the homeowner originally refused.

When they go bellyup due to poor management/economy they are a good place to get a supply of appliances, fairly cheaply, for your rentals.

You also stated that if a letter comes back undeliverable that the landlord may take the funds.

This is not the case according to subsection 5

Please notice the very last sentenance which I have put in bold for you as it stipulates that the tennant not giving a forwarding address does not waive their rights to a deposit or any part of that deposit.

Again I mentioned no comingeling of funds at all, but you do need to know your law if you are going to quote it.

According to Title 6 Chapter 83 Section 49 subsection 2 paragraph (b) IT ACTUALLY STATES

Now if no funds are allowed to be comingled at any time then why does the state law mention it as a possibility?

When did I say to comingle any funds?

I do believe I said not to use any funds in that despository account. Just the fact that you do have those funds there and must keep them there is often enough to get a signature line of credit based upon the monthly average that has always been there. Therefore that account must have some "seasoning" showing a constant average balance which does not vary much except in the upward motion as you get more apts and deposits.

Yes, with this deal that would be true, but the 1,000% was a possibility that exists compared to the other ways spoken of.

It would have been just as possible to purchase for that 1,376.00 and then resold in same condition to a fixer-upper for 13,760.00 which would also give me the 1,000% and leave him quite a bit of room for his profit.

ARV 125K - purchase 14K - repairs 50K still leaves a profit of 61K for him. Minus closing costs of course.

Plus you can virtually double the profits by seller financing the buyer. Even using the lower 110K sales price financed by me over 30 years at only 5% would net almost 216K or 165K profit.

Then you could always rent these properties as well and gain a handsome monthly income stream for very little upfront cost. All repair and purchase costs can be recouped in rent in less than 7 years which is about the time that small things begin to go wrong.

The main point is that every avenue you wish to take is still available to you but the purchase price is usually much lower than most other ways. But you must do your homework on these properties as they may have more repair costs than other properties due to not being maintained by the homeowner who wont be responsible enough to (or cant) even pay their taxes.

Very sweet suggestion Peter.

To take it to its final conclusion, the check sent (and returned) is only good for XXX time after date on check per banking laws. Since you know it was returned and was unopened you also know that the funds are in the account and will not be used unless the judge opens the letter and for some reason deems that the tennant should recieve it. Stranger things have happened from court proceedings even though all laws have been followed.

In the meantime, there is no reason not to use those funds, as collateral, for some kind of line of credit to help with other financial purchases or needs.

DO NOT use the funds to repay loans or in any way except for collateral security.

There are rare cases where the public officials do not do what is required by law. But this is not the case with most tax sales. It is also the reason that I deal only with the county run sales as they are more often than not to have done the proper legalwork.

But yet it does happen. And most of the time the investor who actually purchases the home will gladly return it to the homeowner and recieves his initial investment back from the county. He usually loses only his time and effort and potential interest or ROI.

There was even one case where the county tax attorney was sent to jail because of his failures to abide by the law and all sales he abided over were vioded and investors monies returned.

They now must start over with the tax sales process as most properties still were not redeemed and are up again for sale.

Horror stories do exist, but they are the exception.

Dont mind sharing at all. I purchased it 9/27/2008. That was actually one year after the sale. There is a one year redemption period in TN. 9/27 is when the deed was recorded in my name.

Since then has been the fixup period all with my limited funds. It has cost 36K so far and I have about another 14K to go.

The area homes value at approx 110K so I should be in very good shape when I put it on the market about the end of the year (I hope).