All Forum Posts by: Kareem Aaron

I'm not too familiar with your market, but i was in a similar situation in the DC metro and pivoted from renting/leasing to rent-to-own (lease option).

i got the place occupied in no time with above market rent, passed on any trivial repairs to the tenants, and collected a significant option fee.

The option fee is magical! The tenants have skin in the game so wont mess up (e.g., not pay rent).

I'm sure you'll get it rented soon; but just wanted to share an outside-the-box option that was successful for me.

-KA

based on this thread... I decided to get my license. 

In my opinion, the pros far outweigh the cons.

Fortunately, getting through the real estate salesperson material and exam was not so challenging b/c I was already a full-time investor and had a lot of knowledge.

It took me about 60 days, studying for at least 2 hours a day. I used theceshop.com for my pre-licensing course and did everything at my own pace right from home.

I would recommend investors do the training if only to be more knowledgeable about real estate and things related to on-market deals, such as agency. (I targeted only off-market deals, but that will certainly change now)

I'm just looking for an investor-friendly brokerage to hang my license in the DC Metro (MD, VA, and DC) now.

Thanks to everyone, particularly Wale, for chiming in on this post.

Best of luck to anyone who decides to dive in and be an agent as well.

-Kareem

full-time investor (... and soon to be agent!) 

I'm in the DC Metro and would be interested in taking on creative finance deals, including subto.

Here are some more details...

The property has a $40K+ water bill.

The water company has informed us that with foreclosures, the new owners are not on the hook for past balances.

so the lender/trustee is responsible for rectifying this... and the balance is so high they're delaying until they figure something out.

Aside from that bill, there are no other encumbrances and we're able to get clean title with owner's title insurance.

We got in the deal with cold, hard personal cash.

We have a balance, which is {AuctionWinAmount - DownPayment].

This balance accumulates interest until we close.

so we have equitable title, but the property is not deeded to us until we close with the trustee.

-Kareem

- I purchased a foreclosure property in Maryland

- in MD, the court has to ratify the sale... and this can take at least 30 days

- the trustee mandated that we close no later than 15 days post ratification

- I was ready, willing, and able to close per the date they specified

- we decided to push out the closing a few days due to inclement weather

- several weeks have now passed since ratification and they've continually delayed the closing

- I'm on the hook for interest from the day I win at the auction until the day I close!

Indeed, I can consult with an attorney for "official" advice, but I'm curious if anyone else encountered such an issue.

If it was my fault for missing the date, there would have been consequences (e.g., keep my down payment and exit deal)

What consequence can they face for this delay? The interest is pilling up.

I'm a real estate investor specializing in foreclosures; I buy properties from the court steps in Maryland.

In MD, all foreclosures must be ratified by the courts, and this is a bottleneck because...

- it can take up to 45 days for the sale to be ratified

- as the new owner, I cannot touch the house (i.e., no rehab work) until the ratification is complete

- the longer it takes to get to the rehab work, the longer it will take for me to get it rented

- the house is vacant and "idle" until this redemption period passes

My current insurer is giving me only 30 days to make repairs and have a tenant lined up to rent the home.

This would be impossible! Indeed, the ratification takes more than that alone.

Not to mention, I'm buying distressed properties that may take 30 to 60 days to fix up.

So, I'm seeking to work with a new insurance broker, agent, or company that understands the needs of foreclosure investors operating in states with a redemption period after the auction sale.

-Kareem

I would want to get my license simply for investing... have no plans on selling houses (unless something falls into my lap by accident). I would seek a broker with minimum fees and 100% commission. 

why is disclosing the fact that you're a real estate agent a con? what are the ramifications behind this component of being an agent and investor?

Here's what my insurance provider told me:

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The damage would fall under the liability portion of your policy.

If you knew that the water heater was going bad and didn’t take any measures to have it repaired/replaced, then you would be negligent and the policy would cover it, less your deductible that you're responsible for.

If you didn't know that the water heater was going bad, then you weren't negligent, and liability wouldn’t apply. The neighbor would need to file under their own policy. 
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I talked to my condo insurance provider, they won't cover the damages to the adjoining unit. They advised me to tell the owner of the unit to file a claim on their insurance. I talked to the HOA, they said in an email:

"The Association will hold the homeowner responsible in accordance with the Maryland Condominium Act".

Am I responsible for the damages?

I would get it for the max amount I can get. Thanks for providing feedback.

In fact, in knowing what I know now, I would be looking for lenders that can give me the highest LTV as well.

-Kareem