All Forum Posts by: Account Closed

@Christopher Phillips Actually, "Out West", unrecorded Deeds are valid. It can create a real mess though.

@Frank S. Lending & Title both depend on credibility of the individuals involved, the actions they've taken and the documentation of those actions. Some things can be researched and proved, but it looks like this is one of those "flying by the seat of the pants" transactions, between family members, which is not normally "arms length". The bank is going to have a very hard time doing this loan and you'd best have a backup.

@Mike Landry You say "Of course when they bought it they didin't pay the loan because the sellers said there wasn't a loan and they owned the house free and clear." There is a lawsuit waiting to happen here somewhere and it may be fraud. If the people bought "free & clear" (in their minds) they would be fighting the foreclosure stating they don't have a loan on the property. It is only a matter of time before the bank digs deeply enough to figure out what is going on. 1) So, she still owes the money. 2) She needs to find the people she sold the house to and 3) It will be a long while before this gets settled out. She definitely needs a real estate attorney on this one. I would not buy it. The rabbit hole goes deep.

@Luis Valle Sure, it's a great idea if you know what you are doing. I started out buying pre-foreclosures and I learned a lot.

@Nick P. When I partner with people, even family, I put everything in writing and we determine the split and exit strategy in advance. Usually one provides the money and one does the work. Or, if you are each putting in money, you have to decide if you want to do shares split by the amount put in. Normally the person doing all of the work gets compensated for their time and expertise. On sale, after expenses, the shares are divided. If you want more info send me a colleague request and PM me about this post.

@Christopher Winkler

A chapter 13 can be for the length of time necessary to pay back secured creditors. It does not have to be for 60 months. A Chapter 13 can be discharged early if the debtor is able to pay off the remaining plan. That might happen in the event of an inheritance or other increase in payments to pay the plan off early. Or it might have been renegotiated by the debtors and the creditors which would allow for an early pay off.  Another possibility, it isn't clear from your question if these are unrelated properties, is that a husband and a wife can file separate Chapter 13's at different times and it might be a bit confusing since they would have separate bankruptcy filing numbers. Another possibility is that you are confusing dismissal with discharge. (and no, I am not an attorney but I have bought a lot of pre-foreclosures that were in bankruptcy.)

@Account Closed Thanks for the article. Good info.

@Kevin Boyd Actually, yes. Make a list of everything involved in the transaction so you know what to do ahead of time. There isn't much time to think it through in the heat of the moment. Have water tight contracts. Know what the law is in each state you're doing this. Understand the tax implications. Know your exit strategy. If that is your exit strategy, what is your acquisition strategy? How long do you want the leases to be for? What happens when things go wrong (they will). Know your Landlord Tenant Laws, have an eviction attorney on hand. When HVAC fails how are you going to handle it? If the area floods (it is Slidell by the way, I lived in the Garden District in the 70's) what happens? Does the house you are leasing out have mold problems? Was it every flooded? Can you get insurance? What if you lease option it to a guy who has his girlfriend move in and she trashes the house? What if the lessee's dog bites the neighbor? How will you comply with DoddFrank? What the heck is DoddFrank? What if the lessee does an AirBnB for Mardi Gras? How will you market to fill the properties? Who will manage the properties? How will you screen tenants? This is a start . . .

@Eddie Egelston I was told at an insurance conference that houses that have claims and landlords that have claims are put into a database. Guess what? That affects your premiums. Go figure. So, a house that has a couple of claims may end up not being able to get decent coverage for a decent price. And, this is regardless of whether the claim was justified. Remember the reason Insurance Companies are in business, it is not to insure your loss, it is to insure profit for the shareholders.

@Jay Hinrichs @John Woodrich Two things. 

First, I think of the coaching/teaching as a way to get people to do things ethically and to keep them out of trouble and to keep the seller happy and safe. In my world one doesn't do this kind of transaction unless you are well funded. And I am very upfront about it. Also, most people wouldn't know how to do things properly unless they are taught (disclosures, deeds, title reports, using escrow and an attorney, etc). 

Second, having differing opinions about ways to do real estate investing is one things that make investing interesting. Some will do only Fix & Flip. In my opinion, Fix & Flip is the riskiest way to invest. Ask anyone who was investing in 2008-2011. That is a long run of dropping prices.