All Forum Posts by: Lou Veiga

Is there a way to search forum posts by the 2 letter state abbreviation? I've tried entering "NH" in the search box, but I get a message saying "search term is too short". I can type in the full state name, but it comes back with a limited number of hits. How do I find the posts that have the abbreviation?

I'm looking forward to this as well. See you all there!

Great feature!

@Rick H.

I definitely plan on following this property just to what happens. It just adds to the learning experience.

I have discussed this situation with a RE attorney and their recommendation is to stay away from this property. Because of the bankruptcy, it could take a long time to clear title on it, so I would be potentially tying up a lot of time and money on this. Also this individual has been involved in some sketchy dealings in the past. The 2011 transfer of the property into an LLC could be considered fraudulent since it was done after filing for bankruptcy.

I also looked into another property owned by this guy that was foreclosed on a few month's ago. Turns out the foreclosure took place and he bought it back under a different LLC.

So bottom line is I will stay from anything associated with him or any one of his 40+ LLC's. The risk is probably not worth the reward.

This has all been a great learning experience for me and shows the importance of performing my due diligence.

Thank you all for your input!!

I just put in a call to a RE attorney. I'll let you know how I make out.

@Ann Bellamy Thanks for the reference.

Just to add one more thing to all this, I found the owner filed for Chapter 11 bankruptcy in 2009. I'm not sure how this impacts the situation.

@Dion DePaoli I agree I'm not ready to get into note investing. I need to learn more about it. It might be something to consider for me down the road.

Thanks again to everyone here.

So I have been digging deeper into this. I did a title search on the property and found that it is a first position lien. I also checked the LLC that it was transferred to and the only thing that came up was a state tax lien for less than $100. This is by the way the only property in the name of that particular LLC that it was transferred to.

Next I looked into the law suit. Turns out there are multiple suits against him. The county deed records don’t mention the reason for the suit, just the court docket #. All the suits have petitions to attach real estate and personal property. This latest one was dated March 2013 and it is for $600k. There are also judgments against him which have been recorded but not satisfied (one in April 2013 for $538k and one in March 2012 for $263k). I also came across some suits dated Nov 2009 to the tune of almost $8 million. These were from a credit union trying to get their money back from defaulted loans.

I suppose I could dig further with the court docket numbers and get more information on the cases. But at this point I think I need legal advice on this. In NH we have 30 days to close after the auction. I could wait and see if the auctions takes place and try win it. If there are complications afterwards, I could walk away and potentially lose my $5k deposit. I think I'm better off spending a little money now on a legal consultation. It would be much cheaper way to go.

BTW...I also noticed this guy has 2 other properties coming up for foreclosure after this one. So it looks like his world is falling apart.

@Dion DePaoli

You mentioned:

"In a different approach, this may be an opportunity to make a bid on the note and finish foreclosure. You could then go to auction and bid as needed or if it doesn't get bid, it will revert back to you, the worst case you get a little payday but no property."

I guess I don't quite understand what you meant by this. Are you saying I could bid on the note before it goes to auction? Is that common? How does that work? I never heard of that approach. Why would they accept a bid knowing they may get more at the auction?

@David Krulac

Thanks for the feedback. I haven't come across your article on foreclosures. I'll have to look for it and read up on it.

It seems around here the majority of them go back to the bank because there isn't enough equity in it for a 3rd party sale. From the one's I've been following, I would say it more like 5% of them get sold to a 3rd party.

This particular one that I'm looking is a rental property. I bet the people living there probably don't even know it is scheduled for foreclosure. It's a very nice ranch style house. It appears to be in good shape. I would estimate the ARV at around $200k,(probably more like $220k, but I'm being conservative) with the foreclosure amount around $120k, and $30k for repairs, holding costs, closing costs, etc.

Seems like it could be a good deal if it makes it to auction.

Great advice. Thanks Bill.

@Bryan L.

Yes, you are right. There are other deals out there, but finding them is the tough part. This one has the potential to be a $50K+ profit deal, but I'm on the fence because of the issues associated with it.

I just can't afford to get burnt on the tail end of it. So that's why I'm contemplating if it's worth pursuing.