All Forum Posts by: Tim Johnson

@Kyle Scholnick @Account Closed

Thanks all for your help... based on market analysis, I'll keep my rent where it's at. I went a few days without any leads so I was concerned, but just had another one call me.

Landlords:

1) What do you think about before you answer that question?

2) How long would you let a property sit vacant before you cut the rent? Or would you consider doing something other than reducing the rent? (making improvements, etc)

3) What's your favorite strategy or rule for making sure that your property is priced fairly?

Promissory note and mortgage documents are prepared and they are paying for a lawyer to examine them... deal is moving forward and target closing date is next week. I've put in some solid hours of due diligence on this one... feel good about the counterparties... will be getting a first lien on their property and a decent return. Hope it works out. You guys will hear from me either way. :)

@Sam Sendgraff talk about reviving a dead thread here but this showed up in search results... I am looking for a mortgage template for Tulsa County, also. If I PM you my email address will you send yours over?

Thanks!

@John DeVito

@John Thedford

@Al Wilson

@Rick H.

@Jay Hinrichs

Thanks all for your feedback and advice it is really greatly appreciated... from 10,000ft level the 12% return is worth the risk for me considering that it will be secured. I also do not have any other investment opportunities on my immediate horizon, and it's passive money... But most importantly, it's a learning opportunity. I don't know many others my age who've had a chance like this and 5 / 15 / 30 yrs from now I think I'll be happy I went for it even if it becomes more difficult than expected. There would be foreclosure on the back end if it goes really, really bad... that's a risk I have to take to do the deal.

I'm definitely getting a first lien on the property to protect myself. I also asked more questions and looks like they do have a title insurance policy on the property. Would it be overkill to get my own lender's policy as well? 

I am doing a manual title search on my own with the county clerk's office and I have not found any liens or encumbrances other than mortgages. All property taxes were paid in full per the county treasurer's office, and any IRS liens would have expired 120 days after the foreclosure / auction. I'll dive deeper into the title search results this evening to ensure that there are no additional mortgages that would not have been cleared at foreclosure (e.g. senior lien to the foreclosed note).

Biggest unknown right now is figuring out how to get the documents properly drawn up and recorded. Sounds like it just needs to be a note and a mortgage to place the lien. We plan to have a lawyer or title company take a look at what we prepare.

Hoping to close next week...

They bought the place at a foreclosure auction earlier this year and received some confirmation of clear title from the bank or auction house. I will get some documentation from them on that... Thinking I may not need to get title insurance if their story checks out. I don't imagine that any title issues could survive a foreclosure auction... I'd hate to be wrong though. 

 How quickly do you think a title company could turn-around on a deal like this? 

Thank you for this advice... Do you use a template for the promissory note / deed of trust? Or do you have a lawyer draft one for you? How much does that cost? 

I thought this deal was dead in the water last week. They never responded after I countered their lowball interest rate / no security offer. But sounds like they are now willing to give me a first position lien and we are meeting today to get the ball rolling. Plan to just write a letter of intent and allow a week or so to get proper documentation before closing. 

Hey John, this may be a stupid question -- what does it mean to "take it through a title company?" Does that just mean getting title insurance?

@Daniel Ryu I have only visited there briefly a couple of times and have never done real estate research in that market. I currently live just over an hour east of there. 

I can tell you it is the location of a Phillips 66 refinery which is a major job source for the town. It also used to be a major office location (750 jobs) for ConocoPhillips until 2009 when they finally consolidated everything to Houston and Bartlesville. They are making efforts to diversify the economy there.