All Forum Posts by: Laura Richards

There are many ways to handle this but eviction is likely not one of them. You need an attorney to look at the documents for the agreement your friend had with the defaulting homeowner. Without reviewing those documents first there is NO WAY for  you to know how to move forward. 

You could purchase the note and go through a lengthy and expensive foreclosure but as the note holder you still have to put the property up for auction so you aren't guarantee to get it. Risk is small but still  not guaranteed. There may be an easier way to skin the cat. 

Was an actual mortgage and note recorded? 

Does the defaulting homeowner want to move in exchange for forgiveness of the debt? If so a Deed In Lieu could be the answer. 

$15K doesn't sound like much. Does your friend think that  you are taking the property subject to the loan or is he recording a satisfaction? 

There is a lot here for you to consider and work out. You yourself said you have NO experience with real estate. Hire an attorney on this one. 

In most cases they aren't worth the paper they are written on... and what Wayne Brooks said. 

Florida is full of Canadians buying up properties like crazy. I close many deals with foreign investors as the buyer and seller and they go off without a hitch.  I agree with the sentiments of finding the right team that has experience specifically with investors. If you already know what you want your portfolio to look like, the purchases should pretty easy. Pick a good title company and a CPA that specializes in foreign investors and you will be fine. 

Your deal is dead unless one of three things happens: 

1. Seller agrees to give you an extension

2. As close date creeps ever closwer you could ask a larger more experienced wholesaler or investor to sell it for you. They will give you a nominal fee (assuming there is enough meat on the deal to do so). Doesn't sound all that attractive, but at least you haven't burned a bringe or ruined your name by bailing on a deal - which is really important for investors

3. You find a private money lender or long"er" term transactional funding while you find a buyer - not recommended unless you stand to make a very large hit on the deal. 

Welcome @Mike Baldwin . I don't often comment to newbie posts but yours stuck with me. Congratulations on being brave enough to learn a new industry with the end goal being to  help your wife and family. Give yourself some credit - you have more experience than you think. Your rental experience in Nebraska will certainly be a benefit for any Buy and Holds in Florida. 

My only advice would be to STOP going to these seminars requesting astronomical amounts of money. Think about it, you could buy a house with all that money. There are a ton of local investor meetings in Central Florida that are great resources with great people ready to help. Also, a good honest wholesale company will be more than willing to help you find the right investments for your portfolio b/c a good investor agent understands that a happy client is a return client. Same goes for title agents and attorneys. 

Good Luck!

Altura Investment Realty is one of the largest investor friendly brokerages in Central Florida. You can just Google them and get all their info. 

Caveat: I've never bought one but I have talked to people who have. 

With that said, at the last investor meeting I went to (CFRI) I had a group of investors telling me they purchased HOA foreclosures because they could rent the units out while waiting for the bank to foreclose. They realized a profit because the rents more than make up for what they paid at the auction.

Personally, I can think of way easier ways to create quick cash flow and have a long term investment as opposed to fly by night rentals.

To buy at the HOA auction you really need to know what you are doing. The biggest surprises (disappointments) I see in my office are from clients who bought a property from an HOA foreclosure not realizing they inherited the mortgages. They thought the mortgages were wiped out.

Thanks for the mentions  @Matt Devincenzo! 

@Eric Fiedler first we need to see the Deed or vesting document. These grandchildren may not even have an active interest. They may just have some sort of interest that kicks in upon the death of someone else. Who knows?! You need to start with figuring out exactly who owns what and how.

Everyone is pointing you in the right direction from a legal perspective, but honestly, I think you  were warmer with your idea of just buying the other guys out - depending on how much the pain the $#! guy is going to want. Again, look and see who owns what and how; then you may be able to buy them out for what you would end up spending on a partition action. 

The thing with a partition is just as Bill G mentioned; it's not a guaranteed thing, can be a long process and the parties may not end up with property in the end anyway. Second, you have no ownership in the property so you can't bring this partition action. Who is going to file the case? Certainly not the pain in the $#! collecting rents. Sounds like he has no problem with the current arrangement.  Are the others motivated to sue? 

Last thought...you mentioned the 1/2 interest guy is someone the grandmother owed money to. Did he have a lien against the property; like a mortgage and note? Assuming the 1/2 interest wasn't enough to satisfy the loan, you could purchase the note and foreclose.

Either way, you need a real estate attorney to look this property up and tell you exactly who and what you are dealing with. 

You would probably be better off purchasing at the auction since it is this close already that way you aren't stuck with some junior mortgages and other liens. The sale could potentially wipe all those out for you, but be wary of HOA's and check how those work after sale in your state.

If your lease was assignable they could be considered a new tenant under that lease unless your permission is required first. Otherwise, you don't have an eviction at all but rather an ejectment of a squatter. Little more complicated and you should use an attorney.