All Forum Posts by: John Nisewonger

Thanks Chad that's a good idea.  Maybe I will put up a post to see if I can find an agent on here.  Questions though....what is SWD? 

Hello all

I currently own 3 homes (2 buy and hold and 1 is my residence). So my wife and I are planning on purchasing yet another property and have stumbled across auction.com.  Was wondering if anyone here had any success with deals on here and also had some questions on how you close on a cash only property as I have never done that before

My wife and I just bought a house Oct 2015 through a local auction and we ended up with a great deal. Bought for $104,500, appraised at $140,000 when we were closing and now that the work is done bank is saying its worth $175kish (I think $165kish but still!) So we are taking out a HELOC to either use as down payment, repairs or a cash only house.

Here is a standard listing in my area

https://www.auction.com/details/2839-shady-hill-lane-petersburg-va-23803-2115341-o_796

My main concerns are the types of deeds they supply you with.  Should I get a local real estate attorney involved in my deals from the get go?  Should I get a real estate agent to act as a buyers agent to help me along? Should I just hire a title search company myself? What should be my main concerns with these auction.com properties?

Transaction Details:

• Buyer will not be charged a Buyer's Premium for this property.
• If you are the Winning Bidder, an Earnest Money Deposit of 5% of the total purchase price or $2,500 (whichever is greater) is required.
• Buyer may receive a Special Warranty Deed or equivalent if Buyer is able to purchase title insurance without delaying the closing (title fees typically cost between $500 and $1500 and are based on the purchase price of the property). If buyer does not purchase title insurance, buyer will receive a Quitclaim Deed or equivalent, with no express or implied warranties of title.
• Buyer is responsible for all escrow fees typically ranging from $850 to $1,375.
• While this property is reported to be vacant, buyer is responsible for obtaining possession.
• Any delinquent HOA/COA assessments shall be paid in accordance with the applicable Purchase Sale Agreement.
• Property is being offered as is, where is.
• This property is being offered exclusively through Auction.com before it will be available to the broader market. Please be aware that in rare instances, issues arise that may require the seller to cancel the transaction due to this early availability
• Until the seller's reserve price is met, Auction.com may counter bid on behalf of the seller. Counter bidding gives buyers and sellers more flexibility to find a mutually agreeable price. Counter bids do not occur after the seller's reserve price is met.

I know this post is old but I bought an occupied auction house through a local auction company.  The previous landlord went through a bankruptsy and 150 properties of his was auctioned off. I ended up winning the bid and buying the house. 

It turned in to a complete nightmare.  The tenants refused to leave and it took me 4 months of going to court to finally get them out.  They ended up appealing the case and taking it up to circuit court.  Complete waste of my time and money.  We spent $5500 btw lawyer fees and mortgage payments and only got back $2800. 

When I first presented myself I tried to do a cash for keys and they said no. Then I said you can stay there for a month for free just be out in 30 days.  They agreed but lied.  Never paid me a dime.  Turns out they were section 8 trash and their sect 8 status ran out right when  closed on the property.

Just be careful

I got my start as a landlord using a HELOC. My wife and I just purchased another property with a bunch of equity in it and I plan on using that strategy again. Going to talk to my bank this weekend. Only thing to really remember is that when you sell that house, that HELOC will have to be paid off in full. So either be comfortable with that idea.

I work with some interior designers if you want their number Caleb.  One of the girls works for herself and is very reasonable on price.  I had them pick some colors and give me some flooring advice on a house I just bought.  I plan on doing the same thing you are doing.  Bought a house through an auction and plan on living there a couple years and sell it for a hefty profit.  Last one I did like that I just turned it to a rental.  Let me know.  Im from chesterfield but now live in N Dinwiddie.

Hi I would be interested in being on your contact list.  I am more interested in Chesterfield and the tri cities area.  Get any in that area?  Thanks

Im in Chesterfield. Current buy and hold investor.  Feel free to contact me any time

I usually post ads up on work I need done in facebook calssifieds.  Has worked out pretty good for me.  a good friend of mine is a carpenter if you need anything carpentry related done.  Just shoot me a message and I will fwd you his info.  We are in Chesterfield

I was just going to ask this question but found your forum question first.

I also currently have 2 properties that I am renting. With the info I found and was told, LLC is the best option. If you do not put your properties in an LLC you should still treat them like a business. Create a separate bank account to collect rent and pay the mortgage and other expenses. Do not comingle your assets. If you do end up going to court for something serious, at least the lawyer can fight your case and you will just lose your business properties and not your personal assets.

This is just what I was told. I will be asking my attorney very soon about this. I did not know that some lenders will call your loan if they see you transfer to an LLC. Guess you could always call and ask first

Thanks for the replies.  I told them I wouldn't collect any rent if they moved out within the 30 day notice.  I was advised by my attorney to date the vacate notice on Nov 1st as that is when rent was paid (1st of every month per their old lease).  I did not want to collect rent as I am not supposed to have this unit as a rental per my lender and I didn't want to restart and rental agreements or make it appear as so.

I offered a cash for keys but it wasn't a money problem with them.  It was a time problem. They are now deciding they may want to buy a house and wanted time to close.  I don't have time for that.  I did not collect a security deposit and if they want one back they would have to file claim to the old landlord but he is broke (this was a bankruptcy auction).

I do feel bad but there is no fault to me.  I just happen to be the one that it is easiest on to blame.  Their old landlord sounded a bit shady but who knows. there are 2 sides to every story.  Thanks guys for your input and tips!