All Forum Posts by: Mike Koprowski

Man! Thomas S, no one will ever accuse you of tip toeing through the tulips! Look, I agree with you. A daughter and a lawyer should be sufficient council for him and the rest be none of my concern. What I’m not going to do is put myself in a position where anyone can ever accuse me of taking advantage of some poor old man who’s wife just died. We all know reputation is everything and my neck of the woods is made of many small towns where news travels fast. I’m going to make sure I build a solid foundation for my company to grow on. I would argue that this is exactly keeping my head on business. Thanks for the input. I enjoy your “straight to the point” posts. Keep up the good work.

Hey guys, thanks so much for your responses.

@Dave W.

I have spent quite a bit of time on the MA registry of deeds hashing things out, looks like all of his previous mortgages have been discharged, there is just one HELOC remaining for $80,000. The property has also gone to Tax Taking for FY 2016 (approx $4,500.) and I know he hasn't paid on FY 2017 and we'll say $9,000 owed in taxes..

We are looking conservatively at a $250,000+ ARV

@Richard Heine

Thats a great story!

This gentleman does have a daughter, she's actually how we found the deal.  My business partner's cousin (who is a lawyer) is good friends with this mans daughter.

My business partner actually just got of the phone with him (initial contact) and things look promising.  He has retained a bankruptcy lawyer and his only request/ demand was that we run everything by the lawyer.  He actually said " I really don't care what happens to the house, you can have it if you can make something work".  

This could be an opportunity to get a great deal but also to help someone in a bad place get some cash out at the end.  It's clear through the conversation that this guy doesn't care, I feel like its our job/ responsibility to care FOR him.

 @Minna Reid

I totally agree, it seems weird but this guy just wants to pack up and head to New Orleans.

Its why I titled the post Unmotivated - Motivated.  He fits the criteria of a motivated or distressed sell, but has none of the motivation.

We are going to have my partner's cousin (the lawyer) reach out to the bankruptcy lawyer and try to get some hard data on the real equity position, thank again for your responses and I look forward to any other input you may have.  Ill try to keep you posted on any progress.

Hey BP, 

This is my first question on a forum so give me some slack.

Through my networking I've come across an older gentleman in Massachusetts (MA) who recently lost his wife,  he has stopped paying his mortgage, stoped paying RE taxes and basically wants nothing to do with his house.  Thorough a mutual acquaintance I know that he is planning on packing up and heading south, literally.  He is fully aware of his situation and doesn't care that the bank will foreclose, he just wants to walk away, and he is planning on leaving soon.  I may have only a few days to try to get something going..

I see this as an opportunity for real estate investing/transacting,  but I also see that this an occasion where I can help someone in a bad situation and possibly make something better of it.

Through the mutual acquaintance I know that he has not talked to his bank or a realtor, but he would be willing to talk to me.    

First, how do I handle the initial contact?  I know he is willing to talk, but I know that he really doesn't care about the situation, so I don't want to overwhelm him with creative problem solving, paper work, lawyers and mobile notaries...

Second, what would be the next step?  After reading a TON of the posts on this topic I'm barely starting to sift through the info.  So, if there is anyone familiar with short sale negotiations in the New England area I'd love to hear from you

Thanks in advance to anyone who can help, and if there are any questions I will try to provide what info I have at this time.

Have a great weekend everybody!

-MK

Hey @Ryan Breen,  welcome!

This is definitely the place to build your knowledge base, there are so many helpful people and resources.

I started off very similarly to you, when my wife and I were just married we moved into one of the units of my first apartment building. It's a great way to start and it forces you to really get a quick understanding of management and tenant screening since you will be living side by side with who you rent to.

One of the things that has really been a game changer for me in the last year was finding BP, and especially the podcasts. I listen to them ALL THE TIME.  When I'm driving, working, mowing the lawn and even when I'm in the shower...

The education is massive, and I find that it keeps me very focused and very motivated.

For a local tip, would highly recommend going to the Mass Landlords meetings (MassLandlords.net).  The meetings focus on land lording, best practices, legal updates and they have very good monthly topics and guest speakers, its also its a great place to network with likeminded people.  In our state you really have to understand the landlord/tenant laws with the court systems being so tenant-friendly. 

There is actually a meeting tonight for the Springfield area group that I will be going to. Feel free to reach out if you'd like more info on that, or anything else I can try to help with. 

Hey @Alex Jean Baptiste I think you need to pay a visit to the local tax collector. 

In my town I've seen a list of properties that compiled the property owners and their addresses for people that were in arrears on property taxes. It's all public knowledge because it gets printed in the news papers as part of the lien process so they shouldn't have an issue giving you the info.

I do not believe that "we" as the public have access to the county tax site, but I've had my local tax collector and assessor both give me info on properties I was interested in. I'll then cross reference the info to the towns GIS website and Registry of Deeds website to get as much data as I can.

I am a member of my local Board of Health so I've gotten to know the ladies working in the tax collector and assessor's office pretty well and they've been an amazing resources for information. I've even got them on the lookout for properties that I may be interested in!!  I'd highly recommend getting friendly with them. 

We just had a tax auction in town earlier this summer and I went to observe, it was very interesting.  The properties were all raw land but there were certainly some deals to be had, you just need to do your research ahead of time.  The auction company was Sullivan & Sullivan Auctions, they hold auctions all around Massachusetts, New Hampshire and Rhode Island.

Good luck, hope this helps.

-Mike

Hey @Aaron Araujo,

Got to be careful with this one, we have a tricky state when it comes to landlord/tenant laws and forms.  You need to make sure everything is MA specific.  Ive recommended H. John Fisher's book "Property Management Manual for Massachusetts Rental Owners" very highly in the past, its been an invaluable resource for me.  

The book is full of straight forward information about how you need to run a rental property in MA with no fluff.   The best part was that the book came with a CD that had legal forms for everything you could possibly need in our state.  Unfortunately after reading some of the recent Amazon reviews it seems that it doesn't doesn't come with the CD anymore...  I'm not sure what that's all about but I'd imagine that even without the CD the book would be a great resource for you too.

I'll also echo what @Steve Bracero said about the Mass Landlords group. You should also check out their website and see where the closest meeting is to you.  I personally go to 2 different monthly meetings, there's lots of benefit to membership and its great for networking and education too. 

Feel free to reach out with any other question, I'm glad to help where I can.

-Mike

Hi Alan,

This is a great question and I imagine you are going to get a load of different answers, I look forward to seeing others answer as I've become a RE and business book junkie recently.

So honestly, head over to the book store here on Bigger Pockets.  They have a book for every topic you mentioned in your original post and they are all written by people you can find hanging out here in the forums.  I just completed the library when I purchased J Scott's two books on flipping and I'm currently I'm working through @Anson Young's book on Finding & Funding Great Deals, its really good!!

Id also recommend Frank Gallinelli's book "What Every Real Estate Investor Needs To Know About Cash Flow" its super informative and talks about the real estate terms, definitions and lingo that we all need to know to function as RE investors as well as the math equations, formulas and rules of thumb that are also necessary in this game.  Treat it as text book from a college class and you will get a TON of education from it.

I know there is a list of books that @Brandon Turner put together that are "must have's" for investors. If you put "The Best Real Estate Books for Your Investing Business" up in the search bar you should be able to find it.

And finally, listen to the BP podcasts!!  Personally its difficult for me to find time to sit down and read but I make sure to get in at least 10 minutes per day Miracle Morning style (another great book for productivity)  The podcasts have so much information to soak up, I listen when I'm driving, working at my desk, mowing the lawn, seriously all the time.  Plus you'll get a lot of great book recommendations from the guests.

Hope this helps, enjoy.

-Mike

I love waking up on Thursday mornings and seeing the notification on my phone that a new BP podcast has come out! It’s my favorite day of the week. I was so confused this morning when I saw Tim’s name because I knew his podcast already came out..... then it hit me! The moment we have all been waiting so long for was here!!! 2 hours of absolutely brilliant, insightful and valuable conversation between Josh, Brandon and Tim. Truly of the best ever! Very thankful for this today! Happy turkey day Bigger Pockets!

I agree with the group, get an estimate from a pro because this is definitely not general were-and-tear.  But I also got a laugh from @Derrick E.'s post because sometimes its not worth the headache, rub it with some oil, take your labor and materials out of the sec. deposit and move on.  Does this event justify an eviction? 

A lot of this may hinge on your lease agreement. Are you charging extra for a pet deposit? If so you may be implying that you expect expenses like this.   Will some DIY repaired scratches change your asking rents to future tenants? is this an A or a C  class property? Some people quickly overlook blemishes like this. One thing I can tell you from being in the trades is that repairing 3 solid wood doors will not be cheap.

My first thought was to take it out of the sec. deposit, but that stems from the fact that I cant charge for anything other than a lock fee in my state, no pet deposits, no application fees ect. ect. to be clear we can charge for repairs due to negligence, but it can be difficult to get paid depending on the class of tenant.   @Thomas S., why do you suggest not to take it from their deposit? I get that it takes away from their "incentive" to not move out in the middle of the night, break the lease, or not pay rent. Just curious if you had any other insight. 

@Thomas S.,

I totally agree, everyone needs a place to live and that's why our investment vehicle stands the test of time when done smartly.  This country is quickly becoming a renter-nation, much like Europe.

Think of this, the younger millennials will see two RE crashes in the first 20-25 years of their lives, the first one they watched their parents live and struggle though and the one that fast is approaching.  They will always rent, they are just one of many client bases.

My issue is with the landlords that willfully neglect their properties because of the client base they service, we should strive to maintain a safe and clean property for all our tenants (which I believe the majority does).  if you don't have the cashflow to set aside for repairs and cap-ex, your probably bought a bad deal.

But hey, its all good, those are the guys on my mailing list! :)