All Forum Posts by: Jerry Barnette

@Jaysen Medhurst the flood insurance and the homeowners being so high is the cost I didn’t anticipate, the bank is a local lender and they are fine with the loan amount just have to keep the two insurances paid on it

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There is a 3 bedroom 2 bath 1 garage house,

I tried to buy it a year ago for 30k and was turned down then I offered 35k and they said their bottom price was 41.5k, well I walked and they contacted me out the blue months later with a 26.5k price. I said yes and made the offer and it was accepted. I’m getting nervous now because a lot of costs I didn’t plan for are coming up but I still think it’s a good deal but wanted to get someone else’s opinion because I’m very new to real estate and feel like I’m getting over my head. This will be a rental,

!Rent should be around 700 but I want to be conservative so 600 is what I’m using in formula 20% 5300 Down 21.2k at 4.99% With bank

It dosen’t need any rehab but I added 2k just to be safe

So I’m looking at

244 Monthly Payment (10 years 4.99%)

143 Insurance and Taxes

6500 downpayment + Closing Costs

2k rehab

Anyone have any advice, tips or thoughts on the deal

@Ned Carey you was correct, I drove by there today and there is a company rehabbing it and they told me they owned the house and they bought it for taxes.

@Ned Carey they is the title company, I haven't been able to reach the Seller who listed it on Hubzu and only been able to talk to the receptionist at the title company, I haven't talked to title company agent who has been working my deal and doing the research, the receptionist says she is busy every time I call, haven't spoken to her once during the whole deal. The title company is wanting to move forward with the closing and they are saying the Auditor is wrong and the bank (seller on Hubzu) owns the property and they recorded the foreclosure deed on Jan 2019 and the state auditor is telling me the redemption period ended and popcorn LLC owns the property since 2018 and the property was deeded to them. So confused right now. I haven't closed yet, only sent the earnest money and paid the auction site fee's.

@Ned Carey I finally got the state auditor on the phone and she told me that the redeem period has ended and the house has been deeded to a LLC, I'm a little confused, the bank listed and sold me a house that they legally didn't own, what options do I have now?

Okay thanks that makes me feel a lot better

So I see a foreclosure on Hubzu and make a bid,

My bid didn’t even come close to the reserve and was very shocked they accepted it. I sent the earnest money and a month later today we was supposed to close, a attorney was driving here to meet me and told me to bring a cashier check and I asked him how much and he didn’t know and couldn’t find out, so I called the title company and they actually said they had to reschedule because someone bought the taxes on the house. This confused me because why would they move forward without this information. I pressed for details but they wouldn’t give me any. I asked if they contacted the attorney or agent since we was scheduled to close in a hour and they didn’t. So I called both and told them, which annoyed me because the attorney was driving hours to come here. Neither of them said they had any info. It was getting late so I called the local tax office before they closed to ask them if they knew anything and they said a business bought the 2016 taxes on the property, and they said most likely it was in Nov 17 when it was sold for 2000 and we have 18 months to redeem them. I’m totally clueless how this will play out and tbh it seems like everyone else is as clueless as me. If it was a foreclosure in October 2018 how did someone buy the taxes in 2017? Wouldn’t the bank pay the taxes? And also will the bank redeem the deed or let me redeem the deed and knock it off the price, or will they cancel the deal. This is a homerun deal and I just don’t want to lose it

@Dmitriy Fomichenko thanks for info, I’ll check it all out when I get home from work

@Grant Rothenburger sorry for the late reply, they have been doing great, we live in one so that saved us 500$ a month rent and the other we inherited the tenants on a month to month basis their rent is low because of a deal they had with owner but I’m still cash flowing on it so I’m gonna honor the deal until they leave then I will touch it up and raise the rent to normal, they are paying 400$ month for 4bd 1 bath but they are very low maintenance, the third needs rehabbed, he was in the process of rehabbing it and it came with a lot of materials, plus the third came with a 1 acre lot with room to build more on, we payed cash for the properties so don’t have a monthly payment so that helps a lot, the rented house we are taking a loan against to buy a 3bd 2 bath 2 garage for out primary residence and then we will rent the one we live in, my plan is once we move in to repeat the loan on our 4th and then buy another and hopefully repeat as much has I can.