All Forum Posts by: Kyle McCorkel

Who has experience buying properties from divorced couples?

I got a great lead from a tax delinquent property.  Ex-husband called me, he lives out of the area but received my letter.  He said he'd love to liquidate the property because they are going to lose the property at a tax sale later this year anyways.  According to him, he *thinks* his ex-wife is still living there and she is not paying the property taxes.  He knows she's having financial trouble and would probably want to sell.  But he has no contact with her and doesn't even have her phone number.  They've been divorced about 10 years apparently.

I checked property records and it appears only his name is on the property, even though she is the one who has been paying the property taxes.  

Any recommendations on how to proceed? I'm going to swing by the property and see if she still lives there.  I tried skip tracing her and couldn't find any contact info for the ex-wife.  I'm going to contact my title company/attorney as well.  If her name is not on the property, can I proceed with the transaction with the ex-husband? Or do I need to go through their divorce attorney, etc?

I realize some of these questions might be answered by my attorney, but I'd just like to know if anyone has any tips for dealing with divorce properties.  This is my first one, I've been focused mainly on probates up to this point.

I say keep talking about it. When I first became obsessed, I had doubters questioning my goals all the time.

Then once they saw me buying properties and making money and having success I’ve gotten nothing but support. Go figure, haha!

@Katie Miller

Do 12 deals in 2020 (I did 4 in 2018 and 6 in 2019). That can be a combo of flips/BRRRRs.

Acquire 20 more buy and hold units. I figure I want my income to increase by $2,000 so conservatively I’ll get there at $100/door. If we keep adding passive income at this rate we will be FF by age 37.

Send 625 mailers per week. (Or 2500/month) Based on past direct mail performance, I could get a deal per 2500 pieces. So based on the above goal of 1 deal a month, I arrived at this goal.

Congrats @Eric Drum

@Deborah Hoffman I’ve got an awesome guy too, if you want another option. PM me if you want the info.

The surrounding areas around Harrisburg and Lancaster are fantastic and that’s where I primarily focus. As a rule I don’t invest in the actual cities (I.e. no city schools) for a myriad of reasons including but not limited to poor schools, high taxes, crime, and strict code regulations. However there are many other investors (I know them personally) who really know the cities, block by block, who are doing very well.

The surrounding school districts around Lancaster are mostly very good.

Hi guys - you are right that Central Pa and especially Lancaster have outstanding economic fundamentals. Job growth, population growth, affordability, etc. It might be a hidden gem on a national level but locally it’s not like no one is investing in real estate. So, expect intense competition and borderline irrational exuberance from other investors in Lancaster and anywhere else in the area. We’ve been hot for years and there are many out of state investors overpaying for what they believe is cheap PA real estate.

So, I’m not telling you not to do it, just be careful and keep a level head, and maintain perspective. Expect some challenges.

@Cory Iannacone Great job with the growth and also great job detailing everything out in that post.

I can definitely relate to the feeling of getting properties under contract, then getting the money. If you build a track record and constantly network, it is a lot easier than most people think.

@Becky Joyner

Thanks Becky. I’ll see you soon. I’d like to hear what your plan is with refi’s for your BRRRRs.

I've been doing BRRRR's with great success in Central PA (Harrisburg, Lancaster, York, Carlisle area) for 2 years now. That success has largely been due to a lender offering fantastic terms on portfolio loans for 1-4 unit properties:

• 30 year amortization, 30 year term
• Lends to LLC's
• Fixed for 10 years
• Great rates (My last refi was 4.25% interest rate)
• No seasoning period
• 80% LTV

To my dismay (as well as virtually all my fellow Central PA investors), this lender recently announced that they are no longer offering these loans to LLC's (they also mentioned a potential cap on total loan amount, but nothing official there yet). Not a big deal for someone doing one or two deals, but for those of us who are really trying to scale legitimate businesses with asset protection, this is devastating. It looks like the party is ending, at least with this lender.

Yeah, there's ways to possibly get around this (with added costs and/or drawbacks) but I don't want to get into those weeds in this post.

I knew we were spoiled with this lender, but I really got hooked on these terms especially the 30 year amortization.  Properties that produced healthy cash flow ($200-$300) at 30 year amortization now are projected to produce a fraction of that amount (<$100) when you use a 20 year amortization instead.

Now that I've begun the arduous task of shopping around for a new lending partner, it seems that everybody only offers 20 year amortization periods (not to mention a higher interest rate and sometimes lower LTV).

My question to the forum is, what kind of terms do you get in other regions/other parts of the country on a cash out refinance for a property in an LLC - specifically using the BRRRR method? Were we really just super spoiled, or do I just need to keep looking harder for that next "perfect" lender?