All Forum Posts by: Jason M.

This is why investors buy the redemption rights from the owner rather than tying up all that cash for six months. Depending on what the bank bid you can probable offer the original owner a a few grand to sign over the deed. This would give them a little money, they can still live there for a few months, and gives you time to line up financing.

If it forecloses and you don't buy it at the sheriff sale you can still buy it from the original owner during the redemption period for what the bank bid at the sale...some times this amount is way less that the homeowner owed. In this case you would just buy the owners "redemption rights" and do a quit claim deed for an agreed upon amount.

So I just came back from knocking on the door.  Much to my surprise the gentleman who answered was the homeowner and not a tenant.  He was polite and told me he lost his job and they were looking for a place to go.  He let me in to look around and gave me his contact info.  Sounds like he's going to voluntarily leave without a hassle (he did not know the redemption period was up in July).  I'm going to offer him a few hundred bucks to leave the place empty without damaging things.  

Kyle J. Doug Thompson Thanks for the info and the link Kyle. Doug, yes I'm going to knock on the door before I close to say hello. Any advice on what to say or how to approach them?

@Corey W. thanks for the responses.  Ideally I'd like to flip this one but if worst case I end up with a short term rental it not a big deal.  I guess I need to make contact and then figure out how to proceed.  The house is only a 3 minute drive from my house so easy to keep an eye on!

@Jay Hinrichs thanks for the response.  I think I will go knock on the door.  I'm pretty certain the original owner rented the place from the cars in the driveway and the general appearance.   MN law says that if a lease started before the sale they get 90days notice to leave and they would owe me the rent.  A lease generated post sheriff sale looks like I can evict immediately.   

I'm picking up a town house via Auction.com that appears to be occupied by a tenant. I anticipate closing in June but the redemption doesn't end until July. I'm intending to do a quick flip as I'm buying it for $152k and the ARV is about $195k. I haven't seen the inside but these houses typically need about $5-10k to put them back to shape so there is a potential $20-$30k profit if I can get in and out quick. The property is in Woodbury, Minnesota. My question is what's the best way to get the tenants out quickly? I've thought about knocking on the door and offering them $500 to leave. Other than that can I just evict immediately once the redemption expires? Do I just list "occupant" on the eviction? What if they have a valid lease? I'm just curious what others who have bought sheriff deeds have done when the property is occupied and the redemption is about to expire? Thanks

@Jay HinrichsI just saw your new post.  Thanks for the clarification and the heads up.  I'm pretty certain this investor plans to redeem like he said.  The bank bid low $133 and the place is worth $175.  Should I try to contact him and try to sell my sheriff deed for maybe $125k?  That way I make a little $ but don't tie up money too long and the investor gets a better price free of any re-attachable liens?

Hi @Jay Hinrichs,

It's a bit confusing what's happened but I'll try to explain a bit clearer.   Wells Fargo bid $133k for the house in February at the sheriffs sale and then listed the home with Auction.com.  I bid and won the Auction.com auction for $110k.  I then discovered an investor bought the redemption rights from the original owner.  I made contact with the investor and they are planing on redeeming it.  So now they will have to pay me what the bank bid $133k so I stand to make the difference in what I paid $110k versus the payoff $133 plus interest.  The $23k is where the roughly 20% return came from not the statutory rate.  From my understanding the redeemer has to pay the same rate as whatever the previous mortgage was so I assume it's 3-4% on top of the $133k.   

I have 11 SFH and 1 commercial bldg. 3 of the SFH are paid off