All Forum Posts by: Luke Harrison

My fiancee and I looked at a duplex today in a up and coming neighborhood, with a lot of hospital development. We have a family member who would act as our private investor, and loan us 100% of the purchase price in return for a reasonable interest rate on the money he loans us.The asking price is 65k, we are going to offer 55k, and negotiate from there.

The question is, what is the best way to have him give us the money and us give it to the seller, and have the entire transaction be under our name? This is an MLS listing.

@Nathan G. Thanks for the input, and I did highly consider this option, but the court awarded us with a judgement for all the back rent, and I live in a lower income area, so for this particular property I only get $625 a month per unit, and the lawyer fee for the eviction process is $400, and takes a few weeks. I know my odds of getting payment on the judgement are low, but getting a new tenant would yield me $1,250, with the 1st and last month rent upfront. So I felt just cleaning and updating the unit to get the $1,250 a week or so later would be my best option for this particular situation.

I am a new investor with 4 units, and have completed my first eviction. We made a common mistake that many new investors make, and let the tenants get away with too much. With these particular tenants it wasn't uncommon for them to pay their rent late. We imposed late fees, yet they couldn't seem to catch up and make payment on the 1st most months.

The tenant was a nurse, and this property is nearby to a hospital. She lost her job, and I figured there are plenty of nursing jobs around, and there was an excuse for everything, after a full month went by and still no payment, I threatened eviction, and served a 3 day notice to pay or quit. She took this notice to local charities, and social services, and kept telling me that a check for rent relief was coming soon. Well I had an upcoming vacation, and didnt think much about it, and spent 3 weeks away working on my 5th unit that I am planning to run as a short term rental. The entire time I recieved no money from tenant, and being across country didnt have the time or abili6to go through with the eviction.

Long story short we ended up hiring a lawyer, and had the tenants evicted early this month. They waited till hours before the eviction was to take place to finally get the social services check to take care of the back rent. But at that point I was ready to cut ties, and the rent was due for the next month 3 days after that, so we decided to not take the money because social services would only take care of the rent if we let the tenants stay, and I did not want to take the money just to have them be late again, and have to pay the lawyer to re do the entire process just a few days later.

I am now in the process of cleaning, painting, and updating the unit in order to re rent, and hopefully find a new and better tenant. What a headache, but I suppose it is all part of the game, and another lesson learned.

@Chad Urbshott thank you for the response. I will just have to keep my eye out for it to come back on the market under an agent.

2 weeks ago I was the only person who showed up for a judicial foreclosure auction at the county court house. They told me the reserve and I was unwilling to pay that amount. I told them my name and phone number, and how much I came prepared to pay for the property that day, since my intentions were to fix and flip, or hold as a long term rental, what I was willing to pay was far lower than what the bank needed.

Fast forward to this week, the property is now listed online as being in pre-forclosure, home in default, past due payments. The bank that the deed got signed back to is JP Morgan Chase. I cannot find any contact information to try and check in, or make my offer on this property.

My question is how can I still peruse this property, and what are my best actions to take moving forward to try and obtain this property?

I went to a foreclosure auction yesterday at the county court house. I ended up being the only one that showed up. They said the bank needed to get $68k to sell. My maximum that I came prepared to pay was $22k. My intentions were to fix and flip this property. The person who represents the bank took my name phone number, and what I was prepared to pay. The bank that the referee signed the deed back to was JP Morgan Case. The property is now listed on Zillow as pre foreclosure.

What are the odds that the bank will contact me? What is my best option to make my offer on this home? Is there anyway I can still try to buy this house?

Investment Info:

Small multi-family (2-4 units) buy & hold investment in Randolph.

Purchase price: $45,000
Cash invested: $30,000

This is a two unit home my girlfriend and I bought through bank foreclosure.

What made you interested in investing in this type of deal?

This was our second deal, we were interested in it because it was close to home, was a distressed property, and thought it would be a good addition to our portfolio, while giving us experience with repairs and maintenance of distressed homes.

How did you find this deal and how did you negotiate it?

We had seen this property 5 years prior in pre foreclosure, and couldn't make the deal happen due to being novice in the processes. When it showed back up in the market for a cash only purchase, we were excited to redeem our missed opportunitie. This home would have been our first deal if we would have gotten it 5 years prior, so we were excited to see it come back on the market.

How did you finance this deal?

Through a private lender.

How did you add value to the deal?

We completely renovated the interior of the home. We started with the upper unit, once that was done we rented that unit, and used their rent as capital to help finance the lower/larger unit. The entire process took almost a year, but we had rent coming in after the first 6 months.

The reason it took so long? We did everything ourselves, and couldn't be happier. We learned so many valuable lessons that will come in handy for years to come.

What was the outcome?

We still own this property and are using the cashflow to potentially fund future deals.

Lessons learned? Challenges?

Learned many valuable hands on rehab lessons.

Investment Info:

Small multi-family (2-4 units) buy & hold investment in Randolph.

Purchase price: $45,000
Cash invested: $30,000

This is a two unit home my girlfriend and I bought through bank foreclosure.

What made you interested in investing in this type of deal?

This was our second deal, we were interested in it because it was close to home, was a distressed property, and thought it would be a good addition to our portfolio, while giving us experience with repairs and maintenance of distressed homes.

How did you find this deal and how did you negotiate it?

We had seen this property 5 years prior in pre foreclosure, and couldn't make the deal happen due to being novice in the processes. When it showed back up in the market for a cash only purchase, we were excited to redeem our missed opportunitie. This home would have been our first deal if we would have gotten it 5 years prior, so we were excited to see it come back on the market.

How did you finance this deal?

Through a private lender.

How did you add value to the deal?

We completely renovated the interior of the home. We started with the upper unit, once that was done we rented that unit, and used their rent as capital to help finance the lower/larger unit. The entire process took almost a year, but we had rent coming in after the first 6 months.

The reason it took so long? We did everything ourselves, and couldn't be happier. We learned so many valuable lessons that will come in handy for years to come, with property management, and potential fix and flips.

What was the outcome?

We still own this property and are using the cashflow to potentially fund future deals.

Lessons learned? Challenges?

Learned many valuable hands on rehab lessons.

Investment Info:

Small multi-family (2-4 units) buy & hold investment in Jamestown.

Purchase price: $45,000
Cash invested: $5,000

Firat investment property for my girlfriend and I. Two one unit apartments.

What made you interested in investing in this type of deal?

We had been interested in investing in a multi family previous to purchasing our own home. We decided that neither myself and girlfriend liked our jobs, and realized that if we were to switch carriers and advance our professional careers we would have to take pay cuts, and needed to supplement our income before switching careers

How did you find this deal and how did you negotiate it?

We used the same realtor that we used to find our personal family home. We told her that we were interested in beginning our real estate investing endeavor, told her our market, and price range and she went to work for us.

How did you finance this deal?

Traditional

How did you add value to the deal?

Since this property is two one bedroom units, the turnover rate is quite high. The previous landlord was under charging, and with every new tenant we were able to increase rent until we were on par with our local market.

What was the outcome?

We are still holding and cash flowing from this property to this day.

Lessons learned? Challenges?

The biggest challenge was learning how to be a landlord.