All Forum Posts by: John C.

 Jimmy,

I am completely new to REI, literally, I began looking into this less than three weeks ago. A few days ago I discovered a property coming up for auction. The owner died 2 1/2 years ago, and the heirs have not opened succession (estate/probate). I've already begun communication with family members.

If all goes well, I hope to convince them to move forward with doing so, in addition to getting the property under contract.  This may turn out to be my FIRST deal, make it a great opportunity!

Here is the link to my post regarding that situation:  

http://www.biggerpockets.com/forums/12/topics/169369-possible-first-deal---seeking-advice-help

Regards,

John

Thank you @Robert Leonard!  I appreciate it!  I've checked my inbox... nothing yet.  Guess it takes a bit.

John

@Rick H., I've done some research and determined that here in Louisiana, the "three" siblings can do a "donative renunciation" of their inheritances, donating to the "one" sibling.  (For that matter, they could all "donate" it to me!!)  Hopefully I can talk them into it moving forward one way or another.

If they let it go to auction, I'm sure it won't be worth pursuing... the bid will probably get run up by the mortgage company.  In addition, there are others here that have been "begging" for that house.

I've also got an Attorney/Title Company (investor friendly) on board, ready to move forward with the succession (probate) when we get a green light.

I need to begin a serious search for a buyer.  I basically want to wholesale it, unless someone wants to partner up and let me see it through the rehab as well.

Thanks again!

John

Thanks you @John Horner for your feedback.  I actually came up with that figure after doing some due diligence work today to see if there were any liens on the property.  I discovered the following:

•   $98500        Mortgage balance
•   $11010        Interest due (3.725% per annum going back to 5/10/12, per suit)
•     $2750        Sheriff's departments cost/fees
•       $950        Attorney's fees
• $113210        Total

That leave a "fudge factor" of $4700, if I've done things correctly.  I try to "leave no stone unturned."

What do you think?  I really appreciate feedback and constructive criticism!

John

Thanks guys for your replies @Ned Carey and @Rick H.!  Since creating this post, I've discovered that there are four siblings... one is willing to move forward with opening succession (estate/probate), but the other three have chosen not to do so - they are fearful of being stuck with unknown "debt".  I've also learned that there are options for allowing the "one" sibling to move forward, but it will still require some degree of cooperation from the other three.  I hope to speak with each of them and try to get them on the same page (sometimes I manage to be persuasive).

I've done some due diligence work today and discovered that there are no liens, etc. on the home, and that what they may have perceived as potential debt responsibilities is incorrect.

If I can get them to "open succession" and subsequently get the house under contract, I think the deal may work out something like this:

• $165000 ARV (Conservative estimate, waiting on comp info - tomorrow?)
• $118000         Purchase price (includes interest, Sherriff's fees, etc. to date)
•   $17000         Rehab (high estimate)
•     $5500         Fixed Costs (high estimate for cash buyer?)
•   $24500         Profit

I'm not quiet sure how to structure deals, etc (I'm new to this), but.... what do you think?

I would love to find someone locally who would be willing to partner up on this; let me do all of the leg work and learn as I earn!!

John

Thank you @Dave Metsker for your feedback.  I greatly appreciate it!  I can't do much with this until Monday, when the "next door sibling" returns from out of town.  In the meantime I'll search for a potential buyer/partner to help with moving this toward a conclusion, if I'm able to get the siblings to come to some sort of agreement.  Stay tuned!

John

Thank you @Neomi Riley for your reply!  Since posting this, I've contacted two of the four siblings and I've discovered that:

1. 1. the house has a reverse mortgage on it (the $98,500)
2. 2. one of the siblings lives right next door and knew about the reverse mortgage
3. 3. the other 3 siblings were unaware of the reverse mortgage, and therefore do not want to move forward with opening succession because they are uncertain about what debt responsibilities they might incur.

I've done some research online regarding "successions" here in Louisiana (referred to as "probate" everywhere else, from what I understand) and from what I can tell, they shouldn't have much to worry about unless they were co-signers with the deceased on debt related obligations.  I've also discovered that those who don't want to move forward with the succession can basically "donate" their "inheritance" to the one sibling that does want to move forward.  However, their willingness to do that may require some effort.

I've not been back in contact with either of the two that I spoke to yesterday.  I'm somewhat paralyzed with uncertainty.  I'd bet there is a deal here... a pretty good one I'd think!  I'm just not sure how "involved" I should get in trying to move the siblings along.

Given my level of experience, resources, etc., I would love to get this under contract and turn it over to a buyer. After speaking with the two family members, I'm confident that the home would only need cosmetic changes (no one is available to show it to me before Monday) to make it easily marketable with a nice ROI. Four family members (in attempting to track down siblings, I've spoke to two grandchildren) have said that TONS of people have approached them about buying this property, including at least two who've offered to pay for the costs of "opening succession"!!!

I'm also still hopeful that some of the seasoned vets here at Bigger Pockets will be able to offer some advice.  I'd LOVE to get some guidance from someone in the New Orleans area as well, and possible partner up on moving this forward!  It seems that this would be a challenging "first deal," but I'm a sucker for a challenge.  As I said in the initial post, I am here to work, learn and earn.

I wish I were experienced enough to offer you some advice Neomi.  At the very least I wish you plenty of success!  Hope to see you around the forums with good news!

All the best,

John

Pre-Foreclosure Unopened Succession.....

Being new to REI, I'm not sure what to do with the following scenario, but I think I smell a deal! Advice, guidance and even "hand-holding" are welcomed!

Yesterday I located a property in pre-foreclosure, scheduled to be auctioned mid-March. The foreclosure notice is the mortgage company vs. "the unopened succession of".....

The owner apparently died in June 2012, and the house appears to be vacant.

The writ amount is $98,500. (What is the best method for finding/determining accurate comps?)

Indications are that the brick house was built in 1994 and is approx. 1250 sf. From the outside, it appears to have been kept up; someone has at least been taking care of the yard. It is in a good neighborhood and, having to guess based on outward appearances, I would assume that very little would need to be done inside to make it move in ready. Again, I would conservatively estimate that this house would retail for $150K.

Upon "googling" the deceased's name last night, within two minutes I was able to find the names of four children and eight grandchildren. Additionally, with little effort, I found telephone numbers for one child and one grandchild. These were the first and only two that I attempted to find. (I figured I could search for others if needed.)

I am assuming that the next step would be to contact these relatives and pursue a deal. I have no problems doing so, BUT moving forward would potentially make this my first deal! Because of my complete lack of experience, I am asking the seasoned veterans here at Bigger Pockets! What should I do next? What type of deal would be the best strategy? What would YOU do? I am here to work, learn and earn!

Your input and assistance is greatly anticipated and even more appreciated!

Thanks!

John

I have also posted this in the General Foreclosure & Pre-foreclosure Forum

Being new to REI, I'm not sure what to do with the following scenario, but I think I smell a deal! Advice, guidance and even "hand-holding" are welcomed!

Yesterday I located a property in pre-foreclosure, scheduled to be auctioned mid-March.  The foreclosure notice is the mortgage company vs. "the unopened succession of".....

The owner apparently died in June 2012, and the house appears to be vacant.

The writ amount is $98,500.  (What is the best method for finding/determining accurate comps?)

Indications are that the brick house was built in 1994 and is approx. 1250 sf.  From the outside, it appears to have been kept up; someone has at least been taking care of the yard.  It is in a good neighborhood and, having to guess based on outward appearances, I would assume that very little would need to be done inside to make it move in ready.  Again, I would conservatively estimate that this house would retail for $150K.

Upon "googling" the deceased's name last night, within two minutes I was able to find the names of four children and eight grandchildren.  Additionally, with little effort, I found telephone numbers for one child and one grandchild.  These were the first and only two that I attempted to find.  (I figured I could search for others if needed.)

I am assuming that the next step would be to contact these relatives and pursue a deal.  I have no problems doing so, BUT moving forward would potentially make this my first deal!  Because of my complete lack of experience, I am asking the seasoned veterans here at Bigger Pockets!  What should I do next?  What type of deal would be the best strategy?  What would YOU do?  I am here to work, learn and earn!

Your input and assistance is greatly anticipated and even more appreciated!

Thanks!

John

Hello @Kevin Brown! I am completely new to REI (please don't let that take away from the remainder of this reply!). But based on what I've learned so far, I intend to start off with wholesaling. At the advice of several here on Bigger Pockets, I intend to seek out buyers (buy and hold as well as rehabbers) interested in the New Orleans metro area and areas beyond. Upon initial contact, my goal is to find out specifically what each investor wants, and to then seek it out and create the deal that works for all parties, when possible.

As was stated in one of the blog posts that I've read, "I want to bring you the deals that you want, and learn the business by doing so (paraphrased)!"

If I can be of any assistance, please let me know.  I would be happy to search for the property that meets your specifications!

I look forward to hearing from you.

John