All Forum Posts by: Joseph Cacciapaglia

Is the UPB greater than the property is worth? You can't just set the reserve amount without records supporting it. You are correct on doing due diligence on prior liens. You should also check that the seller has proper chain of ownership of the mortgage. There are a lot of issues that can delay or stop your foreclosure from happening. Just because the original borrowers are deceased, doesn't mean no one has standing to challenge the foreclosure. Is there a right of redemption in your state? You should definitely hire an attorney to conduct the due diligence and talk you through the foreclosure process. There may be a lot more uncertainty than has been presented to you. FYI, I'm no longer a practicing (or licensed) attorney, so none of this is intended to be legal advice. These are just some of the issues you want to get clear on before trying something like this. If it's really just 60-90 days, why not buy the home at the foreclosure sale?

If the heirs really want nothing to do with it, and there aren't junior liens, you may be better off paying the estate a nominal fee for their interest in the property, and negotiating a payoff with the note seller. This could take a lot of time and uncertainty out of the process, depending on the answers to all the questions above.

Are there any restrictions on STR/Vacation Rentals and is there demand in your area? We do really well with very large short term rentals in my market. That way you don't have to cut up a beautiful old property.

You caught my attention with that headline! Investing in San Antonio, TX is my favorite topic. I little more detail in the question would be great though.

A lot of my clients are doing well in the San Antonio suburbs headed towards Austin. Towns like Selma, Converse, and Universal City have both small multifamily and single family deals that have been appreciating well, but still are priced to cash flow. There are also plenty of spots within San Antonio that are doing well too. Near the Pearl and in the Med Center are two areas that are doing very well for STR/vacation rentals.

Axos Bank used to be a good source for small balance mobile home park financing. Their website says they're still in that market, but it's been quite a few years since I've dealt with them. One issue you will have is they may not count your income from the park owned homes. You used to have to hold the homes in a separate entity from the park itself. I don't know if that's still the case. The investors that I worked with would buy the park with bank financing, but held all the homes separately, and used private lenders for those.

I missed this article. Glad you posted it. It's certainly no surprise. I think the article is right on when it says, "the city’s biggest advantage is that it pairs affordability with growth". This is such a cheap market to get into, and there is no end to the growth in site.

Several lenders here in SATX would let you take 75% of the appraised value out of the home after holding for 6 months in that scenario. Some will let you take 75% of purchase price immediately. If I were in your situation, I would be running this by my lending partners to get the real deal up front.

I was just getting started in real estate during the last crash. There were great deals everywhere, but financing was difficult. I put together a couple of deals, but wasn't able to make the most of it. Next time, I will be picking up several buy and hold properties. This time around I have much more access to capital, and have the experience of the last downturn to boot.

That being said, there is no guarantee we will have a real estate downturn anytime soon. Real estate doesn't always go down with a recession, and in fact has gone up in several recent recessions. I'm not changing what I'm doing today in hopes of an impending downturn. 

We need more details to know for sure, but this doesn't sound like a good deal at all. A lot can go wrong with a flip, and $900 is not a very large margin for error. What's the total budget, not just your down payment? How certain are you of your eventual sale price? Did you account for closing costs on both transactions? Do you have significant construction experience? Is your time worth more than that $900? The flippers I've worked with are looking at getting a multiple of their investment, not a percentage.

If it's "off market" how is there an agent and multiple offers? I guess that's somewhat besides the point of your post though. In this situation, I would usually request to have the mold and roof leaks repaired/remediated by the seller. It doesn't really matter that there were multiple offers, if this info wasn't disclosed to those other buyers, they probably would request the same things. As far as the A/C units and water heaters, it's difficult to negotiate based simply on the fact that they're close to the end of their useful lives. If they actually have problems, that's a different story. If the numbers are really too tight with the new information, then I might also request some additional seller concession. Having the ability to sell them off as condos provides some additional upside. You could always try flipping one at a time while holding the remaining units as you originally intended.