All Forum Posts by: Joseph H.

@Bill S. you would be correct in that I am pretty new to the Real Estate ventures.  I have thought about the mail outs and that was my third option if I didn’t like what I saw for foreclosures or tax liens which I don’t see much like you both have stated. I just got a recommendation for an agent in Breck and will start with that and see where that leads. Thank you for the advice and I hope to learn more. Thank you for the input. 

@Andrew Postell No, I don't have to use a HML but I am finding it difficult for a lender to loan under $50,000 for a re-finance on a newly rehabbed home. I can find investors for the 20%, but it is how I pay them back within that year time frame is the road block I have been running into.

The foundation was made with stones that were held together with concrete and are starting to fall out. The floor leans at a 15 degree angle in the livin room and the front porch is starting to separate from the structure. The structure would have to be stripped to the foundation and reinforced before putting a new floor back in.  the roof needs a complete overhaul due to sagging, sinking, and the shingles have no more asphalt on them to protect against the weather. 

I have a group of investors that are looking to purchase either a pre-foreclosure or a tax lien property for a vacation investment property. I am looking for someone that has knowledge in that area and can offer some advice on which is better and how to pursue that route. The group are considering a REIT if the legalities workout. Does anyone have experience on this type of circumstance? If so how did you go about doing it and what route worked best for you?

I am looking at a property that is being sold for $34,900 and it needs around $6,000 in rehab. T estimates ARV for $50,000, but where it makes up for a low value is in renting. It has a 48% cash flow every month. Can I refinance a loan that small? I am newer to real estate and have talked to hard money lenders whose lowest number they can do is $50,000, and I have heard conventional banks have a minimum limit they can do. What are your thoughts?

@Ned Carey 

I was considering putting a small duplex there as a replacement, but I will have to crunch the numbers and see what it turns out. I feel you might be right and walk away from it. 

I recently bought a property from a tax lien auction for just under $4,000. From the pictures of the outside it looked ok but obviously needed some work. It was a small 2:1 with a shed for a garage. I had drove and looked at it a couple of days ago and it is abandoned and needs to be dozed over due to structural instability and cost to remodel. My questions are: 

1. Has anyone had experience with this type of situation, and if you have what did you do?

2. Scraping the property and replacing it with another home is possible, and what is a cost effective recommendation for a replacement. 

My thoughts are to go with an unfinished modular home or pre-fab and have it customized. The current house on the property in livable condition comped in zillow (not the most reliable source but close) for $90,000. The house is the worst house on the block so there is room to play with values.  I have only had experience with a handful of rentals and this is my first time with this type of situation. Any advice would be helpful.

Nice work! I hope 2019 brings another great deal and more cash flow. Keep up the thorough research and investing!

@Sarah Pursell

I had dealt with a similar situation with my first rental. The lady had a two-year lease and the first year she was great. The second year she nit picked everything from electrical in which. Had the electrician come out multiple times and he had told her that she was the problem and not the house (Which she didn’t like), and many others from “health code violations for one of the two bathrooms having to get the plumbing redone and it was an inconvenience to her”.

We didn’t kick her out for her constant complaining since she paid on time but in the last two months she did not pay her rent on time the second to last of the month, and didn’t pay it at all the last month. We ended up kicking her out the last month with a 3-day demand followed by an eviction notice. The lawyer advised we send her an itemized letter stating what we did to the property and why she was getting back what she got back from her deposit which was nothing since it covered the last months rent.

She followed up shortly after from her lawyer with a list of “repairs” that needed to be done and that violated health code, in which I replied with a very detailed list of dates times and statements of all repairs done for each complaint she made. I never heard back from that lawyer or her again.

Looking back it was not worth the headache even if she did pay on time. Some of the people said it best on here, “If it stresses your day, it isn’t worth your time”.

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $13,000
Cash invested: $35,000

Single story with a walk-out basement duplex, newly remodeled.

What made you interested in investing in this type of deal?

The numbers worked for the property

How did you find this deal and how did you negotiate it?

Family member found the deal and brought it to my attention.

How did you finance this deal?

Personal cash and a personal loan.

How did you add value to the deal?

Full remodel

What was the outcome?

Walked into $50,000 in equity after everything was done, and this will be a cash flow king.

Lessons learned? Challenges?

estimating repair costs, and this has been a learning curve for the admin side as well as the repair side.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Not on this one.