All Forum Posts by: Michael Knaus

Knee wall

Obviously the roof sagged because the run of those rafters is too long for what looks like a 2 x 8 rafter. The attempt to fix is not going to cut it. Collar ties on every rafter would help but the real problem is that span. I would build a knee wall 16" O.C. all the way across on each side with top and bottom plates. About 4 ft from the eaves. That will prevent the rafters from sagging. You may have to jack the rafters some to correct the sag before the knee wall goes in. This way your roof will look nice and straight and have plenty of support.

@Tony Wooldridge, Yeah he was one of the first! I would watch his infomercial late at night on cable TV. I do still use some of his techniques but for the most part I can honestly say, he is the one that got me motivated to even start. Without those cassettes I am not sure I would even be typing this message in this BP forum. Not sure if he is still around but I would love to personally thank him. I do still have those cassettes ! LOL. Best of luck (even though we make our own luck) in your futures RE investing as well!

After studying Carlton Sheets in the late 90's I became obsessed with buying houses "No money down". After 6 months of trying that I got frustrated and ran out of patience. Everyone was saying it can't be done and that the ONLY way was to have a down payment and use a bank. I gave in. I sold both of my motorcycles and used the money as a down payment on my first ever property that I acquired with a traditional bank loan. 

I then realized that Mr. Sheets was right! You actually CAN buy houses with none of your own money. I just grew impatient and jumped the gun. I am glad I learned some of his techniques because I didn't have anything else to sell! 

@Lucas Machado She has since moved on to other employment :(  I had her working as my receptionist and office assistant. When the phones weren't ringing, she was writing! 

They are tricky to finance w/ private money. First of all, it's crazy risky. Besides that, another issue is the time frame involved. In my PA Counties you have to have 10% down the day of sale and the balance within 10 days. The trouble is, the Sheriff needs the money before they even start to prep deed. The deed usually comes 30-45 days after you fund it. Most investors want the property as collateral if they are taking a mortgage. You can't offer that without a deed. So the loan is unsecured until then. They may, as you say do a promissory note but that's only as good as the paper it's written on. It can be done though. Usually if a strong relationship with the investor has been made, they are willing to work with you.

As I mentioned in a previous post, I do not act as an RE agent at all on any of these. I am only a buyer. I only work with other agents that are okay with me negotiating the purchase. They usually don't care because it hasn't sold through their efforts anyway and the bank is okay letting them earn a reasonable commission. Most sellers contact me directly through my efforts and then put me in contact with their agent. I agree because I'm the buyer my acting as the agent in any capacity would not go over at all!

@Ron S. They do want to see it listed usually here as well. I was referring to me acting as the investor/buyer and dealing directly with the lender.

"Equity" is a relative term in this line of work. What would bank #3 have to do to turn that back into liquid capital? Well, they would have to invest a ton of money to acquire the 1st and 2nd. Deal with Sheriff's sale costs, clean out, renovation, listing fees/commissions. Once everyone gets a piece of the pie, that "equity" isn't so plentiful all the sudden. It's also not just about recuperating their loss either. The sizable investment to buy out 1 & 2 has costs involved too. They would need a return on that investment or their investors will be not so happy. Long story short, I highly doubt a 3rd would pony up. 

When a third agrees to loan money, I am sure they know the risks and where they stand in line. I say they walk. 

You said the second is the one foreclosing and is the same bank as the first? Well then that's why they are doing it that way. If anyone would happen to outbid them as a second, the bidder would get stuck with the first. Smart move on their part.  If they foreclosed the first mortgage instead,  they run the risk of having the second divested. The third hasn't done much because they know they are done. That money is gone. I have heard of bidders making the mistake of bidding on what they thought was the first mortgage simply by going off of the banks name. Come to find out it was the second they bid on which just so happens to be the same bank. I always double check the docket.