All Forum Posts by: Nik Krohn

@Jeff Rappaport that is a great approach. Have you purchased several HUD properties yourself? Especially in Utah?

Any recommendations on finding a realtor who wants to work in this type of arrangement?

I would've held onto that gem for a few more years (like 10). Great job @Huy N. on the spectacular "boring" deal!

I am looking to talk with a few individuals here in utah who specialize specifically on hud homes. Preferably someone who watches the price drops on hud homes and help investors with bidding on these homes.

Please comment below or even better yet, shoot me a direct message

Agree @David Cline! Congrats on the Duplex! Onward and upward!

Hey Adrian! Glad to have you on BP. Not many youngsters on here.

College is a waste of time if you have entrepreneur in you. If you can hustle and work smart, forego the 4-6 year time trap. You will not use it anyway if you have those qualities. 

In terms of learning, you need to LEARN HOW TO LEARN. If you can do this, you can do anything.

Since you are young and have time, I would do the following:

1) read, read, read

2) purchase your first property at 18. Don't listen to other nay sayers. you can do this at 18

3) Figure out how to establish credit as a 15 year old (co-sign with someone)

4) Save for your first deal. You could get a minimum wage job Luke everyone (I dislike this), work construction smertime and weekends, or I like what someone mentioned above and try to bird dog deals.

Most importantly, you are different then other kids your age. This is great. Most people don't worry until they are 30 to think about this stuff. PLAN ON BEING DIFFERENT. My dad always said "find out what everyone else is doing, and do the oposite".

Good luck my man!

@Mike Hartzog, @Account Closed

What does the cashflow typically look like when you purchase a 1st non performing note?

@Christopher Winkler Thanks for your reply. Since you are on your 12th 2nd lien purchase, What percentage of the 12 ended up doing a modification?

Do you mind sharing what you are paying per dollar on the 12 if they include the right equity? 

PS - Thanks in advance for being the only one addressing the question :P

I would love to hear from other investors that have purchased 2nd non performing notes. What percentage of these notes end up with a loan modification? This seems to be the best strategy out the gate. There are several other strategies as mentioned on this blog post:

https://www.biggerpockets.com/blogs/5359/39294-not...

One of the most recent podcast episodes mentioned by the guest that he purchased a 2nd NPN for .10 on the dollar for $4000 (40k debt) and then modified the loan. He got $4k down and $300/mo.

How often is this possible? 

@Chris Watkins you are correct. You can't legally rent the MIL out to non family although we have seen it countless times. We have rented them out for about 5 years and never had an issues. I guess if you had a nosey old neighbor you could have issues if they called the city. Otherwise I think it is a great way to use a MIL in Utah.

@David Cline We purchased 2 SFRs in Utah County that both had MIL apartments. We purchased one in Spanish Fork and one in Provo. They were primary residences for us so the down payments were pretty small. You can still find them in those areas although I still see them in SLC county as well. You can find them in the $170-$220k range.

I know you cant quite compare a SFR with MIL apt apples to apples with a duplex but the pricing is wildly different. I have yet to see a duplex meet the 1% rule in Utah the last year. I have however seen many SFR with the MIL meet the 1% rule tho. And the appreciation is much better too.

@William Hochstedler The first property that had the MIL we lived in for 13 months (Was an FHA loan), we moved out for 7 months and rented (which sucked) and then purchased the second property with MIL (conventional loan). When we moved out of the first, I sold it as a rent to own lease option. It took about 2 weeks to do. We cash-flowed $500/mo + had a minimum sales price in the contract that was also subject to appraisal so if it was higher then minimum, we would sell for that price. We didn't want to be their landlord or do any prop maintenance. They in turn rented the property themselves.

We have since moved out of the second property. Rinse & repeat same strategy.

Final note: Because it had the MIL, it was easy to sell the rent to own (woo whoo no realtor commissions). The renter/buyer could easily justify the purchase because for the 2 year contract, they could rent out the basement for $900/mo and their part of rent was only $500 which is unheard-of in Utah for a small family. We also got a nice downpayment so it would sting a little if they decided to walk away from purchasing the house

Like @David Cline mentioned, you really need to network or hustle to find a good MFR here in Utah. I personally prefer purchasing a SFR and getting a mother in law (legal) and renting that out as you live in the other half. I have done that twice. It has been great because the SFRs tend to appriciate much more than the MFRs.

If you don't plan on owner occupy I usually suggest out of state