All Forum Posts by: Michael Previtera

@Wayne Brooks well I learned a lesson from this. I made a few phone calls and I have found out that I need to call code enforcement as soon as I purchase any tax sale property. By being a new owner I can have the demolition process halted long enough for me to make repairs.

On a positive note a cleared lot in this neighborhood is worth double what I paid including the cost of the demo. I can at least get my money back and make a little extra.

I purchased a house through a tax sale on 3-4-21. The house had a fire about 16 months prior to the tax sale. The damage was confined to the attic and was in repairable condition. I have worked in construction and have an engineering degree. After the sale I went by to secure the property. I put padlocks on the doors and left.

The redemption period here is one year unless I petition the court to shorten the period. I started working on petitioning the court the following Monday. I received no reply from the court. I assumed that these things take time so I didn’t worry. Fast forward to yesterday, 4-10-21, I drive to the property to mow the grass, I don’t want any fines for tall grass, and the house is literally gone! All that is there is a smooth lot with straw spread on the bare dirt. I asked the neighbor what happened and she said the city tore it down.

I was never notified nor was anything posted on the property about the demolition. Nothing was stated during the auction either.

I don’t know what to do. I’m going to call the city tomorrow morning but I imagine that won’t get me anything. And I surely don’t want to pay for a demolition that I was not informed of or authorized. Any advice.

@Steve Rozenberg I started looking and analyzing deals in 3 cities within one hour north of me. I have started analyzing everything I see, since every property has a number that would make it a good deal. I’m also going to start looking at the cities to the south of me starting tomorrow. Thank you for pointing out that the size of my funnel is too size. I’m sure to find something eventually.

Thank you Brandon. It's nice to know that it took you awhile to get your first deal and that you get my frustration. I can see you are successful and that it didn't happen overnight. So there's hope for me yet.

I found a house during one of my driving for dollars rides that has 2 documents attached to the door. The first one says "Not fit for human habitation" The second document says "Order to Demolish". 

This house is in a nice neighborhood and structurally sound. The neighbor across the street says that the owner must pay to have it demolished. Since both the front door and basement door were wide open I looked inside to find a house with trash piled 3 feet high everywhere and evidence of dogs. When I looked in the basement I could see all the joists and everything looked sound. 

I am well aware of what I could find in the house and what it would cost to remove all the trash and gut it. I did that kind of work in 2009-2010 in dozens of foreclosed homes.

Outside of calling the number to the department of the city responsible I don't know what else to do.

Any Ideas?

WARNING this might sound like whining but it's written like this so you can understand my frame of mind.

My experience so far:

Spent all of 2020 getting OUT of debt. My credit score went from 620 to 778. DTI went from 91% to 19% saved $12K in cash. Found an excellent realtor that understands what I'm trying to accomplish. She is an investor too. (Can hardly contain my excitement!)

August: Went to tax sale, bid on several properties, didn't win any. Most went for nearly retail prices. So NO deals just duds. (no problem I will keep looking)

September: Went to Court Sale, didn't win, was out bid by 20K. So I decided to find a partner. (still very optimistic and busy finding answers to my problems)

October: Found a Partner, he's a HVAC and Electrical contractor with experience flipping, only problem is he doesn't have much to spend right now. He has several jobs going on is low on cash. He is willing to help and fund what he can . Also willing to complete whole house rewire and brand new HVAC install if I find good deals but I have to come up with most of the money for the initial purchase of the house, I only have 12K in cash. (happy but getting frustrated)

November: Contacted hard money lenders, since I have no deals under my belt hard money has been hard to come by. I have found three that are trying to help but I just don't have the cash in reserve they need me to have. (irritation beginning to set in)

December: Decide to increase my funnel size. Started a driving for dollars campaign. (no responses yet but it makes me feel better, I will keep it up) 

January: Spoke to several banks and many are wanting to loan me money but I'm waiting on my 2020 taxes to be filed before they can proceed. (Feeling better but nervous about missing good deals)

January 12th: Offered 20K over asking price for a house that I know I could have flipped and made 40K profit. Lost the deal because the owners took a full price offer of cash. Which was 20K less than what I offered! UGH!!! (This no money situation is getting on my nerves.)

The next day January 13th: Holy @#$%^&*&^%$#@#$% it happened again!! I made another offer over asking but they took the lessor amount in cash. I missed out on another 40K in profit! (I can't believe this!!)

The above is shortened story of my journey so far. I have made connections with many people and have submitted dozens of offers not listed above so it's not for lack of trying. I got to be missing something. I know that it's not going to be easy and I expect to get rejected 999 times out of 1000 but it just feels like I could have done more or better. I just can't see what it is. I thought that if I find good deals and have the drive/skill the money will find me, but that hasn't been the case. If I'm doing things right and this is normal please let me know so I can accept it and continue. If it's not please tell me.

A local realtor has a house in the historical district and before they put it on the MLS they offered it to me for 80K. They told me they want cash but I really think they want a quick easy close. It part of an estate sale. The house is a 5 bed 2 bath 2 story brick home. It needs all new wiring, new HAVC, and all the plaster is cracked. The roof did have some leaks but have been repaired with a new roof. However, they didn't fix the ceilings where the leaks caused damage. I truly believe the house on needs 70K worth of work. But since I don't have access to the amount of money needed to purchase or renovate the property I thought I would throw it up here to see if anyone wants it. All I ask is if put you in contact with the realtor and you make the deal can you throw this newbie a finders fee.

Congratulations!!! That is AWESOME!!  Hopefully I will get my first deal soon.

@Nathan G. Wow! That seems like a lot but who am I to argue with someone that makes a million dollars a year doing that. I will up my schedule because of what you said and go with something around once a month.

I have started a “driving for dollars” strategy. I built a spreadsheet to keep track of everything including when I mailed out my first round of letters. How long do I wait to send out a second letter? Thanks in advance.