All Forum Posts by: Konrad R.

I was following the court docs on this case. They did buy a second mortgage on the property. They put in 40k in renovations. The first mortgage went to auction and sold for around 153k. The person that bought the second mortgage put in a motion to vacate the sale based on them not being notified. The motion was denied.

It looks like they lost 176k plus any holding costs. Ouch. That is a very hard lesson learned.

The house was listed for around 240k while the first investor had it. I think they listed too high. The new owner could probably sell it for 220k to 225k. Seems like a good profit since it is ready for sale. I was going to bid on it, but I didn't have enough time. I was also worried that the house would be stripped and/or damaged due to them getting angry at the situation. There were also potential attorney fees that could have added up. It looks like the current owner had to hire an attorney to handle the motion to vacate.

I have been trying to find deals by finding distressed properties. I plan on using the FAR BAR as is contract. How do you handle situations when there are multiple owners? I'm assuming you have to get all the owners to sign the contract. Do any of you use a docusign type service? I guess I'm trying to figure out a way to lock up a contract. For example, let's say I'm speaking to the husband and the wife is not home. What's the best way to handle that situation? I guess I'm looking for closing a sale type advice.

I was kind of surprised by the responses on this thread. I had to take a second look at the amount the OP stated.

I've been discouraged because 200 to 300 thousand doesn't seem to do much in my area. I guess I'm underestimating the power of leverage. I may also be looking at the wrong areas and need to find off market deals. Anything that even comes close to a potential flip property has multiple offers and gets bid up too high. If it can be financed, it will get bid up to a point where there isn't much equity at all after repairs.The multi-families even seem to be too high. I'm having difficulty even finding a property that will meet the 1 percent rule.

If I fully finance the entire deal, I could just do one single family property. Here are the latest deals I've found. I guess I need to look for off market deals.

ARV 315

Listed for 225k

estimated repairs 40k

Sold for 245k

This doesn't account selling or holding costs.

ARV 275k

estimated repairs 40k to 50k

LIsted 189k

sold 197k

I've also noticed flip houses having to decrease their prices. It almost seems like if you break a window and spray some graffiti on the wall in will create a bidding war. A lot of these flippers seem to be over renovating.

I've probably been talking to real estate agents that aren't investor friendly. They seem to think this much case doesn't mean much.

I'm trying to buy cheap 1" mini blinds, but I can't seem to find ones in a 36 inch length. I would think it is a pretty common size, as the big box stores sell replacement windows in those sizes.

What are my options? I didn't want to go with wood blinds or even faux wood because I think they will be destroyed. Does anyone have an online source they purchase from?

From my research, it looks like they did buy a subordinate loan. It was a home equity line of credit. The complain states that it is the primary lien, but the title paperwork is attached to it. It states that it is a subordinate to another lien. It also had a 13 percent interest rate. It was executed in 2006, and the loan that was executed in 2004 is coming up.

It seems like there were quite a few investment companies bidding. I don't know how they could miss it.

They paid 136k with probably 50k in rehab. I'm guessing they will try to strip the house while they still have possession.

I was looking at foreclosure auctions and noticed a house up for auction. It looks like the foreclosure is for the primary loan. I did some research and it was in foreclosure last year, but it may have been for an equity loan.

A certificate of title was issued and he completely remodeled the house. It is currently up for sale.

I'm assuming the flipper will lose everything if the auction goes through (house and rehab costs).

Is this a plausible scenario? Would the county still issue a certificate of title on a secondary loan with the primary loan not being notified?

My relative's house has a reverse mortgage. I'm not listed as the executor or beneficiary in his will. Unfortunately, his health has declined recently. He said I can have the home if I payoff the reverse mortgage. What are my options? I was considering just doing a FAR/BAR real estate contract for the purchase of the home at the reverse mortgage payoff amount. I really do not want to assume the property prior to his passing, but I can if need be. My other thought was to have him put in his will that the house goes to me. Unfortunately, I don't think he is mobile enough to go to the lawyer's office. Also, I don't want to put him through that at this point.

How would you handle this situation?

I found a property I'm interested in, and I'm interested in bidding on it through a county auction. My biggest concern would be buying a second position lien on a property. I looked at the final judgment and it states that the following:

1. Plantiff holds a first mortgage lien for the total sum superior to all claims or estates of the Defendants on the following described property

The principal is well over what the house is worth even the ARV. The house was financed during the real estate bubble. I believe it was refinanced because they have owned the property for a long time.

I'm just wanting to do property due diligence. I think the only liens that would be superior would be government liens, so that would include the IRS and property taxes. Is there anything else I need to look into before bidding on the property?

Greg S.

The rent increase would be for the new lease term. We agreed to a small rent increase for installing central air. It was optional. 

Sue Kelly

I agree. I do look at things with emotions. This is a business venture for me, so I do want to look at it from a numbers perspective. I don't want to help subsidize someones rent at my expense. Maybe, the best thing to do is just charge market rate for the condition it is in. They also are requesting a gradual rent increase. I think 5 months is a long time to give notice. When I used to rent, it seemed like the landlord would only give me 3 to 4 months notice. I do admit that I never had a large rent increase before.