All Forum Posts by: Michael R.

Is flipping illegal? Flipping in the form of buying a property and then reselling in the same condition you purchased for a profit. In one city I invest in it looks like it is illegal. Was wondering how this could be illegal when you are dealing with cash sales.

Here is the link that is saying this practice is illegal here:
http://buffaloflipping.org/

What if the seller does not pay and just quit claims over the property? I would guess the lender might to to foreclose right? The seller owes 50k and house is worth less than 5k..

Are there any liens that would prevent someone from selling a property? I know property tax liens stay with the property. What about mortgages? Can you sell a property with a 50k mortgage for 1,000$ dollars and not satisfy the mortgage just quit claim it to a new buyer? What would happen in this case? I am looking at a rental property that is dirt cheap but has mortgages on it from 2002 that are in the 50k range. Owner filed bankruptcy a year ago but they are still showing. I am thinking about taking a gamble on this property and taking it with the liens. Are there any other liens that would prevent transfer of deed to a new owner? Federal IRS liens maybe?

Even if they are not in use currently base your decision on if they are in use. Just because they are not in use now does not mean they will not be in use in the near or far future.

Why dont you try offering them for sale on craigslist with owner financing? I have had great luck selling some properties this way. People tend to look at down payment and monthly payment then purchase price. I usually offer mine at $500-1k down and $250 a month. Put the wording in the title OWNER FINANCING. I had one house listed for 3k for a month it didn't sell. Then I put it for 6k with owner financing 1k down 250$month @ 0% and I sold it in 2 days after listing on a land contract. Never know.

Oh ok I thought I remembered you bought an 800$ one. Things might just be slow though due to the time of the year. I have alot less interest in the stuff I have for sale then I did a 2 months ago. Hopefully after the holidays things will pick up.
Best of luck

Anyone ever use an electric furnace? I saw one used on craigslist for 150$. It looks like a gas furnace but is electric. I am interested in this because it looks like I could set it up so that I can pull out of my rentals when they are empty. Usually my low end rentals have the furnaces stolen all the time. Was wondering if they are as reliable as gas and if the electric cost would be a deal breaker?

Thanks for the replies. Deal never panned out anyway title had some issues. I am talking to a new attorney now though to get things set up correctly for the next deal. She will do a dead prep for me for 125$ each so it is not worth the hassle to do it myself.

Sherry,
I recall the Cleveland property but not the Kalamazoo ones. I thought you bought the one in Cleveland for $800.00? If so why such a mark up? Why dont you just sell for 2k and walk away. Probably could sell it on ebay or craigslist for that price. If you bought it for 800$ then I can see why there are no takers at what your asking. Someone could by one for the same price you paid elsewhere.
I wish you luck but I would probably just try to get out with what I have in them.

You may also try partnering with a local contractor/ handyman and offer them 50% interest in the house if they rehab it and rent it. You own the house and they do the work for a share of the equity and cash flow. Have them rehab it then use a 3rd party company to manage it and collect the rents. Once it rehabbed and you are satisfied you can add them to the title. This way you know he wont be ripping you off on repairs once its rented.

Can you put a chain link fence down the middle on the property line? I did this with one rental with attached driveways. Sometimes the tenants next door are not aware the driveway is half yours so you might want to talk to the tenants first to see if they will help resolve the problem