All Forum Posts by: Joshua Guidry

@Michael Biggs I just drove there today and there is still water in the majority of the streets.  Two of the properties did not see water, which is pretty remarkable considering some areas saw 8' of water.  We were able to navigate around the flooded areas to the two properties that didn't flood and I talked to the neighbors who said there was no flooding on that street.  The third vacant lot was inaccessible due to flooding in the road, and likely the property.  I'm still OK with getting 2 properties that didn't flood during a 500 year event and one that did for $11K even if it isn't in the best of neighorhoods.

Thanks for the input!  I'm not currently aware if the exemption period has expired or not, and I'm not sure that the seller would know either.  I can ask the guy, but he is in his early 20's and I'm afraid he either doesn't know enough about tax deeds or he may know something that he hopes I won't uncover.  I know very little about these types of transactions, but know enough to know there could be huge pitfalls for the uninformed.

When you say "get title insurance" would that be the same thing as what I would consider hiring someone to "check the title"?  And if they do find issues with the title, would they still insure it?

I've just got 2 vacant lots and 1 lot with a dilapidated house on it under contract all for $11,000.  The properties are located in Orange, TX.  All three properties were acquired through a previous tax sale by the current owner who is looking to sell them to me.  He claims to have "clear" title/deed to all three properties, and his name is listed as the owner on the Clerk of Court GIS mapping website.  

I am concerned that title to property secured through a tax sale may never be "squeaky" clean.  I'm concerned that if I improve the properties and plan to sell them in the future that the title may never be able to be clean enough to sell to the general public due to the tax sale.  Does anyone have any experience with properties acquired through tax sale?  My understanding is that if you acquire the deed to a property through a tax sale that you are required to inform any and all heirs/owners of the property in writing (and possibly receive some sort of receipt of such), and if you miss one heir or owner then they can come back years later and claim ownership of the property.

Can someone shed some light on this type of transaction, specifically what are the risks involved in such a transaction? 

Thanks,

Josh Guidry

Thanks @Matthew Kreitzer and @Steve Maule.  I looked into Legal Zoom and they provide unlimited 30 minute sessions on new topics.  You can engage an attorney who specializes in the area of your inquiry and in that practices in your state.  If you need specific forms developed, you can get the attorney to develop the forms you need on an agreed upon upfront set fee.  They do also have templates already created, but you can get real legal review as well.  Up to 2 pages per document included with the monthly subscription.  

I was also thinking this might be beneficial when I run into specific problem tenants just to get a quick discussion in with an attorney.  For example, I recently had a leak in the wall of a mobile home that I have rented.  Upon investigating, I immediately put a crew to work on the project.  The tenant consistently complains about the work not being complete fast enough, he's insinuating that his wife and children are getting sick (read between the lines...i.e. from the mold that was immediately removed on discovery), and on and on.  So it seems that the service could be of use in those instances and also getting specific legal advice on different topics like setting up trusts to hold real estate, 1031 exchanges and the like.  

Does anyone have experience with Legal Zoom on getting legal advice or creating legal documents?  I recently engaged my local attorney who specializes in construction to develop a residential purchase agreement and commercial purchase agreement with some contingencies (mainly on locating a 3rd party buyer to wholesale the properties).  I also got them to develop an assignment of contract form.  These three forms cost me $1,700.  I was a bit sticker shocked.  I'd like to see people's thoughts on pre-paid legal services.

I now need to get legal advice on the Frank-Dodd regulations in regards to selling Rent-to-Own low income properties.  I also need a Rent-to-Own contract developed.  Your feedback is appreciated!

Thanks,

Josh

thanks for the info. Robin and Jeremy.  I did speak to the seller and he agreed to work directly with the buyer and pay me himself at closing.  So I think I have a much simpler path forward that shouldn't be an issue with the mortgage company.  He also agreed to the process described above for the seller to have the tennant vacate.  

I wonder if the sellers bank would allow the buyer to assume the mortgage with the assignment ?  Otherwise, I may try to negotiate that the buyer work directly with the seller at my cost and attempt to get the buyer to give me the fee after closing on a gentleman's agreement.

Hello BP!

I currently have a property under contract to purchase that has a tenant in the property on a month to month verbal lease.  My strategy has been to assign the contract to an investor for cash who would allow the tenant to remain.  The purchase agreement stipulations are as is condition and not dependant on an appraisal.  The only stipulation is that the agreement is subject to an inspection and that I find and assign the contract to another buyer.  The inspection period is stipulated as the full length of the purchase agreement term. 

I have found a buyer, but it is an individual that has pre-approval for bank financing which complicates the process a bit, in my mind at least.  So I'm sure the bank is going to want to perform an inspection and appraisal, and the individual is going to want to move into the property upon purchase.  So, I'm thinking the way I should go about this whole process is to create an addendum extending the contract term by 45 days, but allow the inspection period to remain the same, request a down payment from the buyer of $1,000, and stipulate that the seller has to provide the 30 day notice for the tennant to vacate after the inspection period has ended.  Another stipulation would be that the seller has to ensure the property is clean after the current tenant vacates which is the reason for the 45 day extension (i.e. 30 days to vacate and 15 more to clean and close on the property).  I'm thinking that those stipulations would provide the buyer a time for inspection and appraisal prior to the seller making the tenant vacate and would also provide enough certainty that the deal will process prior to the seller making his tenant vacate.  I'd like to hear other people's thought on my strategy or what has worked for you in the past.

Thanks in advance,

Josh 

Welcome, Luke!  I'm also in Lake Charles, and I registered for the meet up group that Robert recommended. Hopefully we'll see you next Monday.

Clint, the properties are in Lake Charles.