All Forum Posts by: Jonathan Frausto

@Scott M. appreciate your input! I’ll give the health and safety office a call after the holidays. I budgeted for rehab anyways so hopefully this all works out! Thanks again man

Hey guys

Just closed on a property in my local market with a tenant still in place. Spoiler alert, the tenants have not paid since covid. Of course taking advantage of the "no eviction moratorium." Anyways, I was able to tour the inside of the property and it looks in really rough shape. After talking with my attorney, he advised that if the condition is bad enough and in rough shape, I can try and deem the property uninhabitable so that I can evict them that way since the property might be safe for them to live in.

I'm guessing I"m going to have to bring in a county or city inspector? I'm sure bringing in an inspector will open up a new can of worms but I need to rehab the inside anyways. I've taken adequate amount of pictures of the inside. What are my next steps to try and make this happen? 

Any and all thoughts are welcome. Thanks in advance

Jonathan

@John Powell It's time for me to payback my investors after a cash out refinance. Is there a form or letter you use or like to see that describes the returns the investor made with a thank you and trust with their hard earned money? I'm trying to find a letter template of some sort that breaks down their investment

@Brett Goldsmith

Rehab is just floors and paint Just to get rid of dog smell. In my area it can be done with $10-12k maybe even less

The more we talk about it the less appealing holding onto this one sounds. It almost sounds like a get in and get out situation where I’ll just get it out of foreclosure, Subject To, and Flip it quickly for a relatively fast $15k 

@Brett Goldsmith

As-is home is worth $160-165k all day long. I wanted to keep as rental since there’s only 17years left until mature date and since we’re by the half way point more of the payments go towards principal. We have other 3bed/1bath rental in the area so we know the rental comps very well. We get $1300-1350 for a 3bedroom home. Interest rate is 4.1%

@Account Closed

The monthly payments to mortgage co is $1.2k. Principal, prop tax, and insurance included. 

So in essence with what you just stated above, I'm buying a house with no money down since I should recuperate my initial investment with the nonrefundable $25k and make a couple hundred bucks a month in cashflow for the remainder of the loan (17yrs until it matures) thus giving me an infinite cash of cash return

right? or did I miss something

@Account Closed

Just got back from sellers property. Called the bank up asked for a one time authorization and they mentioned that the house is already in foreclosure. That I have to talk to a Foreclosure attorney in order to talk about possible re-instatement, payoff, and how much down to penny to bring current

At this point, is it even worth it to continue to purchase this property? 

ARV $180-185k

Outstanding Principal: $117.7k

In rears as of 9/01 $16,832.21

$5,000 to seller

17 years left in mortgage

Approx. all in of my money: $30k to bring current, money to her, minor rehab

@Account Closed

Hey Mike appreciate the feedback. Yeah we're looking to keep this as rental. 

Perfect thanks! Ill have my attorney structure this properly. Thanks again

Hey BP Fam

Currently under contract to purchase a single family via subject to

What Id like help on is, is there any specific questions I should be asking the bank once I have Authorization to Release form completed. 

I know I should be asking some basic questions like:

"Are we in foreclosure yet?"

"Can we still catch up on the mortgage?"

But is there anything that I'm missing that I should ask or do in order to make this as smooth as possible

thanks in advance

Jonathan

Hello All

So long story short, I'm dealing with this seller who lives in Missouri and has no intention on coming back to Illinois where the subject house is located.  

Am I allowed to be his "boots on the ground" where I go ahead and find a realtor to list his house on the MLS even though I'm not the owner? I'm just the guy coordinating everything in his best interest.

The deal structure would like somewhat like this:

Me and owner agree on a "fee" that I am going to take home. I find realtor to list property. Sell property for $150k (which is conservative). Around $15k in closing costs and commissions. So theres $135k on the table. I take home $20k. and $115k is left for him which is $5k more than our original agreed sell price. And that's just the minimum. He can potentially take home $120-125k home. 

I would imagine I can do this as long as he's aware of what I'm doing and we have a contract between me and seller with both our signatures as well as documents to prove that he's the owner right?

Any advice would be greatly appreciated 

Thanks!