All Forum Posts by: Kyle Bryant

Say no to your tenant's request, and have someone you trust do the work. Think about it—what is the tenant's recourse? Reporting you to some administrative bureaucracy? If your local laws require such trivial work to be done by licensed contractors, then you're already in trouble. But if they don't, then your tenant has no basis for their demand. If they get upset and vacate the property, then you've just gotten rid of a problem tenant. It's a win-win. 

There's a service called Ema, I think, which does email lists and content marketing. My church uses it for our weekly email bulletins. As for content, you're on your own!

Hey Brannon, welcome to Bigger Pockets. It seems as if most successful wholesalers "drive for dollars" and do direct mail marketing campaigns. That's what I hear most consistently in success stories: pick a homeowner scenario (inherited house, high equity, out of state landlord, abandoned, etc.), and send many direct mailers to property owners that fit the description in your target area.

I don't know—I tend to think the economic response of Hurricane Harvey will be different than that of Katrina, mainly because Houston's economy is very different than New Orleans' economy. Also, the total percentage of houses that flooded in Houston is much less than New Orleans. I'm no economist, but I am a Houstonian, and I don't see this turning into a foreclosure crisis.

I've been thinking that there may be a surplus of people (without flood insurance) willing to let go of their houses for cheaper than normal. I am interested to see what the investor landscape looks like in the coming months. And I would not hesitate too much in purchasing a house that flooded in Harvey.

I live in central Houston, bound by a couple of bayous. Luckily, my house is still dry but mobility is severely limited. Many thousands of homes are flooded though. There is an apartment complex in my neighborhood whose second story units are completely flooded. My parents actually live in Kingwood, near the back, and their house is very close to being inundated with water. And they live on a tall foundation. I hope your SFR is ok, but it is surreal here.

@Matt Horwitz nailed it. That's a pretty good description of what needs to happen. I usually tell people that they can create and file an LLC on their own (if that's the sort of business structure they want). It's cheap and easy. But if you're looking for a solid operating agreement or bylaws, then I would talk it through with a lawyer. It may save a lot of headache on the back end.

@Ken Brown What type of investing are you needing an attorney for? We've reviewed commercial contracts for sellers, foreclosures (as trustee), construction litigation, and a good friend does ad valorem tax protests/litigation. We've also structured some fix-and-flip LP/LLC agreements for investors looking to syndicate their deals. You can send me a PM if you want more info.

@Benjamin Blackburn Great story! What zip codes are you concentrating in? I am on the lookout for multifamily deals in 3rd Ward, South Union, and possibly 5th Ward. 

I was looking through the Harris County Tax website today and came across an interesting scenario. As a new investor, I'm looking for some advice on how to proceed.

Harris County tax authority is foreclosing on a property (tri-plex in Houston) in September. The "adjudged value" is $193k, and the minimum bid (i.e., back taxes and fees owed) is around $28k. The property itself was subject to a probate proceeding back in 2012. The prior owner (decedent) left the property to a non-family resident of the property. Well, said resident did not pay any property taxes from 2012 onward, and the executor of the estate never deeded the property to the beneficiary. So HCAD still lists the estate as the owner.

The County, however, sued the beneficiary (in rem only) but couldn't get him served. The court appointed an ad litem attorney, who went and knocked on the door to the property, wherein he found the beneficiary (the defendant in the county's tax suit). Attorney ad litem hands him the lawsuit papers and notice of tax foreclosure sale, but the beneficiary/resident/owner does nothing. I want to purchase the house with cash, but I don't want to do it at auction, as I believe the price will get run up to where the numbers don't make sense.

My question is this: how should I approach the owner about buying the house with cash to extinguish the tax lien (and maybe put a few dollars in his pocket). It's clear that the house is at least habitable, as it has several people living there now. I am wondering whether I should contact the owner and see if we can work out a deal to where I buy the house, and he potentially could reside there as a tenant. Or, I pay the tax lien and then he owner finances the other portion of the purchase price, or maybe some other arrangement.

I would love to hear from some people who have been doing this a long time. What has been your experience in contacting property owners ahead of the tax sale to try and work a deal? What would be the best way to handle the intricacies of this situation? Any advice would be helpful. The only progress I have made is to do some due diligence on the tax case and probate case, and to put a letter in the mail to the owner/resident. Thanks in advance, BP!