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All Forum Posts by: Linda Hastings

Linda Hastings has started 20 posts and replied 280 times.

Post: Questions about starting out with land flipping

Linda Hastings
Posted
  • Rental Property Investor
  • Stockdale, TX
  • Posts 284
  • Votes 201

Regarding #3, something else that I think would help is including language in your purchase contract that basically says it is the buyer's job to do their own due diligence (in the case when you are selling). Still, I would think something like flipping houses is much more risky. 

Post: Questions about starting out with land flipping

Linda Hastings
Posted
  • Rental Property Investor
  • Stockdale, TX
  • Posts 284
  • Votes 201

Welcome to BP, @Ryan Miller!

I recently started getting into land flipping, so I don't have concrete answers to all your questions, but can pass along what I do know or have observed so far.

1. I think a lot of that depends on what area it's in. If other pieces of land nearby already have houses on them, then there's a fairly good chance the land you are looking at won't have problems perc'ing. I would also think that the bigger the lot or the more building site options there are on the lot, the more likely you'll be able to find at least one place that will work for a septic system. Some lots may not perc in lower areas, but if there is an elevation change, the higher areas may be ok.

2. For postcards, unless you are doing a mail merge version, you won't be able to add a custom field like a parcel number. In those cases, you can just match up the seller's name (and mailing address, if necessary) with the list you pulled and get the APN that way. Another option is to use mail merge when ordering postcards or letters so you can add in custom pieces of information like the APN. Taking this a bit further, I've also heard of people using a custom numbering method in their blind offers so they can easily identify when the letter was sent out and anything else they want. Something like having a small number in the upper or lower corner of the letter that might be coded like "mmddyycsapn", where mm=two-digit month of mailing, dd=day of mailing, yy=year of mailing, c=county, s=state, apn=assessor's parcel number. Or maybe just a couple of digits to indicate that it was the nth mailing of the year, or any number of other things that you might want to encode to make it easier to track which mailing it came from and which property it was for. 

3. Not sure on this one. I haven't heard of any lawsuits related to the sale of vacant land, but I'm sure in our litigious society, they are out there somewhere. Perhaps if you do your own title search and end up missing something that the buyer finds out about later they might come after you for not selling it to them with clear title. To avoid this, you could pay a professional to do the title search and pay for title insurance, or sell with a Quit Claim Deed or Special Warranty Deed (instead of a general Warranty Deed). If you think you'll end up holding onto the land for awhile and it's a bigger or more expensive piece of land, you might consider getting insurance on it in the event that someone gets hurt while on your land.

4. Deeds can vary from state to state (and even county to county, I think). Some states/counties have specific margin requirements (so they have places to stamp for recording) or specific verbiage that must be included. Also, in some states, an attorney or title company must conduct the closing and draw up the deed. In states where you can do it yourself (and want to), one way is to look at the existing deed and use that as a template.

5. I haven't done any seller finance deals for land, but I have researched and dabbled in note investing. Personally, I would definitely recommend using a loan servicing company. It's not that expensive (maybe $25/mo), the cost can be passed off onto the buyer if you choose, and then you don't have to worry about the hassle of keeping the numbers straight and up-to-date, sending statements/invoices, etc. As long as the servicer you use is licensed in the state in which your property is located, it doesn't matter where the servicer is physically located. Most servicers I've seen are licensed in multiple states.

Hope that helps!

Post: Valuing a note for sale

Linda Hastings
Posted
  • Rental Property Investor
  • Stockdale, TX
  • Posts 284
  • Votes 201
Originally posted by @Jay Hinrichs:

Understandable given that your bread and butter is performing notes. Honestly, I'm starting to see why, too. The two non-performing ones I'm in (JVs to test the water and see if it's something I want to pursue further) have been headaches. Meanwhile, the performing note I have turns out a nice return every month. Sure, the upside isn't as big as the potential of an NPN, but I sure do like the consistency.

Post: Valuing a note for sale

Linda Hastings
Posted
  • Rental Property Investor
  • Stockdale, TX
  • Posts 284
  • Votes 201

@Csilla Veress A couple of books that may help with understanding PV (present value) calculations, as well as note investing in general, are:

Invest in Debt by Jimmy Napier

Paper Profits by @Joshua Andrews  (my personal favorite)

This blog post by @Mike Hartzog may also be helpful:

https://www.biggerpockets.com/blogs/5359/41924-doi...

PV is the way most note investors do pricing for performing notes, but for non-performing, you'll want to build an ROI calculator as @Chris Seveney suggested so you can look at various exit scenarios and take into account costs like servicing, legal fees, insurance, etc. 

Try typing the following in a google search to get some ideas on what to include in an ROI calculator spreadsheet:

site:https://www.biggerpockets.com/forums/70 roi calculator

Post: Any One Use FCI Exchange?

Linda Hastings
Posted
  • Rental Property Investor
  • Stockdale, TX
  • Posts 284
  • Votes 201

There are many threads that talk about FCI. Try this in a google search:

site:https://www.biggerpockets.com/forums/70 FCI 

Post: Land flipping in Tennessee!

Linda Hastings
Posted
  • Rental Property Investor
  • Stockdale, TX
  • Posts 284
  • Votes 201

@Josh Harren If you haven't already, check out @Seth Williams' blog post on self closing. He goes into a lot of detail and lists all the docs he uses:

https://retipster.com/how-to-close-cash-transactio...

Post: Needing Licenses To Buy Default Mortgages

Linda Hastings
Posted
  • Rental Property Investor
  • Stockdale, TX
  • Posts 284
  • Votes 201

This may help:

https://www.collectionlicenses.com/

Post: Note Purchasing - For Beginner

Linda Hastings
Posted
  • Rental Property Investor
  • Stockdale, TX
  • Posts 284
  • Votes 201

For more educational resources, you might find the following threads helpful:

https://www.biggerpockets.com/forums/70/topics/411...

https://www.biggerpockets.com/forums/70/topics/432...

Post: Timeline from foreclosure to possession

Linda Hastings
Posted
  • Rental Property Investor
  • Stockdale, TX
  • Posts 284
  • Votes 201

"Borrower was working from moral high ground and wouldn't negotiate."

I almost laughed out loud at this part. The moral high ground would be actually making the payments that he agreed to make and signed his name to when he took out the loan. 

Post: Any Investors in Comal or Hays Counties in Texas?

Linda Hastings
Posted
  • Rental Property Investor
  • Stockdale, TX
  • Posts 284
  • Votes 201

Welcome to BP, @Dusty Lewis! We used to live in Buda, but are now down closer to San Antonio. 

Are you familiar with the Comal Hays REIA headed up by @Mike Walker? They meet in San Marcos on the last Saturday of the month. We invest in Guadalupe county now, but since there aren't any REIAs near us, we've been going to the CHREIA since it started a few years back (although we haven't attended much lately due to the birth of our third child).

If you're interested, PM me and I'll send you the contact info. I'm not sure if I'm allowed to post it in the forum or not.