All Forum Posts by: Jeremy England

So i'm researching properties to buy at the county foreclosure auction.  I came upon one that looked promising (like 40k difference in lender's max bid and value) but when I searched the title I found like 35k in federal tax liens.  

So is this a deal breaker for most of you?  Is there a method of negotiating these liens down?  

Not going to move on this one but I'd like to know for future reference

Great work matt.  Looks good.  

I downloaded a list of all tax delinquent property owners in my county from the tax assessors office.  It was over 21000 rows long.  Im looking for owners delinquent on their taxes with sfr valued between 70 and 180k.  

I deleted all rows with likely commercial properties (hwys, blvds, etc),

Which years are best to include? because there are some on the data set from the 1990's.  For my parse I deleted all rows except delinquents owed from 2016 and 2015.  

Then deleted all corporate owned properties with LLC, Corp, Inc etc text in the row

Then deleted all rows that owed less than 500 dollars and all rows that owed more than 5000.  Is that a good range?

Then deleted all assessed values under 50000 and all above 140000 (this would put likely market values between 70 and 180k)

Then deleted duplicates.

I was left with 843 addresses and owner names.  

Can anyone tell me if I should include some of the deleted parameters.  Or if i'm on the right track here.  new to direct mail marketing.  

Depends on how good of a deal you are getting.  If there is 5k more in repairs but you are already getting the place at 50pct discount, don't miss the forest for the trees.  

 I haven't read this entire thread but if this is multi family, I would probably use the cap rate method.

Net operating income/ required cap rate = value

NOI is calculated by taking the gross rents then deducting expenses (vacancy, property mgt, maintenance, cap ex, etc)

Does that project cost exceed arv?  

Is that correct?  I probably wouldn’t buy it if so

That seems odd to me.  What's the difference in that than those people who build small apts for their aging parents (as opposed to converting a garage).  Perhaps contact a trade organization among appraisers (not sure what it would be called) National appraisers bla bla.  And see if you can get a referral for your lender.  

You could also get a realtor to look on the mls to search for sold listings using the key word "mother in law suite" or "garage apartment" and find out who appraised those sales

There are a few options.  Just offer financed deals.  Get a preapproval froma  mortgage broker and use that to make offers.  If you are trying to make it attractive to sellers then remove contingencies if you are confident it is a good deal.  

Use the cash you have and shop for cheaper properties.

These are for MLS properties

For off market properties, no such proof of funds would be required.  If you get a deal, then you could bring on a partner or a private lender.  

Buy a list of out of state high equity owners and send them a letter or post card.  Repeat as necessary.  When you get in front of one, pitch an owner financed deal.  

Thing is you're not really offering an all cash deal. If you want to differentiate yourself from a traditional mortgaged deal then perhaps you should say you are privately financed and approved, then supply the letter from the HML.

How was it that you ended up with such a slim margin?  I'm sure you have gained some valuable knowledge and I'd like to hear about what costs you did not account for.  

As for your problem, if it indeed did not get solved, there is also an option of renting the house and refinancing out of the hml.  You'd leave several thousand in cash in the property but you'd have income and better loan terms.  Just a thought

Thanks