All Forum Posts by: Mark J.

Update..

@Glenn Lee sounds like a strategy that could work, if you can partner with the right person.

Soo...the owner spoke with the bank and seems she has 2 loans on the property and the main one has already started to go into foreclosure and I would need to pay the foreclosure fees.  Doing a quick internet search it looks like foreclosure fees can be quite a lot.

She said they are mailing her how much the fees are and said she'll let me know, but she didn't sound too hopeful.  

I thought about calling the bank to see if they would sell it, but the deal doesn't make much sense if I need to be 20% down, given what I'd also have to put in for repairs.

Going to follow up in a week or so to see if she has more info.  Really hard time hearing her/understanding (bad phone reception, loud tv) what she's saying, which doesn't help.

Rather than starting a new thread will try to revive this old one...

Curious how people are able to make Union City or the surrounding areas work as a buy and hold.  Looking at what's on the market it looks like 2 units are in the 400-500K range, with taxes around 10K. I can't imagine the apartments will rent for 2K plus, for what I'm seeing.

Are investors buying for appreciation like original poster or are people buying heavy value adds to make the numbers work.  I did see one 3 family for $400 with offers, but looked pretty rough and had code violations that needed to be resolved.

I have a couple of investments in PA and would love to have something in the NJ/NY area, but doesn't seem realistic in the current market or maybe there's a specific strategy needed?

@Glenn Lee I've read banks in general don't like this process, and could call the loan, but may depend on the bank?

I tried to explain to the seller that the bank wouldn't be involved in the process and may say it can't be done/isn't allowed.  I sensed she was becoming skeptical, so didn't want to push it too much.  Unfortunately she didn't know the back payments owed, interest rate, etc. so she has to call the bank.  

We'll see...

Just a quick update...I was able to get a hold of the seller again.  It came up that she's behind on payments, but didn't seem to know by how much.  She said she has to call the bank and get the amount that's past due as well as the interest rate.  I think she wants to talk to the bank about doing a subject to, which I'm guessing they're going to advise against?

Anyhow if I hear back will give a follow up.

@Account Closed thanks for the step by step playbook, seems fairly straightforward and makes sense. I left a message today asking for her to give me a call, so we'll see.  Some time has elapsed so not sure. Unfortunately I didn't know of this strategy when I originally spoke with her. Seems like it could be a win win.

 Either way hoping to use this strategy going forward.  Will give an update if I hear back.

@John K. Thanks for the info, much appreciated and all makes sense.  I left a message with the seller today to give me a call, so we'll see. 

Good call on the mortgage and terms.  I'm a little skeptical, so will definitely dig into that.

Will follow up if I end up speaking with the owner again....

I did a direct marketing campaign awhile back and one of the responses I received was from a seller wanting to get rid of the mortgage/debt.  She doesn't live in the property and it's been sitting vacant for the last year or so.  She tried to sell it but couldn't- think maybe due to a combination of bad agent and price/condition.

It probably needs about 10K to make it nice.  She owes 90K.  I'm thinking it could rent for $1100-$1200/month, which if I don't have to put the 20K down payment would make a lot of sense.

I'd like to approach the seller with a "subject to" offer, taking over the mortgage, fixing it up and renting it out.  Possibly selling it in a couple of years.

How would I go about it?  Do I need to get an agent to write an official offer and do the legal paperwork?  From what I've read I would/should get an inspection to make sure there aren't any major issues.

Would I hire a title agency firm to handle the transaction like a regular purchase (this is PA)?

Does this make sense as a financial deal or am I overlooking something(s)?

Thanks in advance for any input.

@Pedro Bartolomei ohh..haha..got my wires crossed based on the first comment.

Clear CO is common in the area as far as I'm aware.  You can forego if you want to close faster or if seller is selling as is, they probably won't be willing to do anything.  Same as NY.  I'm not sure about Slatington market, but would think it's the same.  

I've gotten burned by not getting a clear CO because I was in a rush. THe flip side is the seller can do slapstick work that you'll have/want to redo.  Actually I got a bit of both!

@Pedro BartolomeiNot sure what municipality you're in, but as far as I know it's no different than any other area in regards to being delivered "broom cleaned".  I'd be a little wary and ask that it be cleaned out unless you're ok with it not. As Theresa mentioned also common to do a walk through prior to closing to be sure property is delivered in the condition you agreed on.  This isn't necessary, but if you have the time it's worthwhile.

@Asif Baig

nice diligence, would be interested to see your results once collated and where you decide to invest.

my 2 cents...

Easton has become very competitive (difficult/time consuming to find deals).  There are a lot of local investors with boots on the ground and out of state money, it's a known rental marked that has a fairly low barrier to entry.  

I've found the "better" areas (college hill, outer townships) don't have many multis and number don't work 90% of the time. 

Downtown, has multis/apartment buildings, but hard to make the numbers work. Interesting area with a lot of potential upswing (appreciation) if the investment dollars keep coming into the area.

Southside- i'm not familiar with this area.  Seems decent, a little quiet, which isn't necessarily a bad thing.  A drive to downtown and college hill area.

West Ward- pretty close to downtown.  Some investors want to stay out of this area, but this is where you'll find multis, mostly older converted houses with ok prices but need continuous maintenance.  This is where you'll also find a lot of people hanging out on the streets and shirts seem to be optional:)

another point, though townships may be part of Easton?  they have different rental laws, inspections, restrictions from what I'm told.

As you mentioned, difficult times right now in general, I'm barely seeing any movement in the market.

Are you investing in the Bridgewater area?  I almost moved on a place in Lebanon over the winter, but too many red flags...