All Forum Posts by: Jean Norton

Net Operating Revenue I believe.

Actually there are several companies that do this all over the country.  Those of us seasoned investors will want to do it ourselves, (and I've done it), however if you're just looking for cash flow with ownership that isn't a bad way to go.  But know, these guys intend to make a profit from their work.

As with all deals verify they are a legit company and find others that have bought from them before.  If you're still nervous, I have friends in Cleveland and Cincinnati that do this.

@Account Closed - Dominion contact is Wade at the dominion group dot com.  They may block that address out, so PM me for the contact information.

Yes I've done JV partners before. On a spreadsheet it's usually cheaper to go via hard money lender, if you can avoid their extension fees. I used to do 50/50 splits, but not any more. At this point I've done enough deals that my last profit split was 30/70, (I get 70).

You can try dominion financial and mention my name.  They are not cheap, but will lend close to 90% of the purchase price and 100% of the rehab.  They will also tell you if you have a good deal or not.

Another way, like @Chris Seveney mentioned is to find a joint venture partner, preferably one near you.  See if there is a local meet up and start networking among investors.  If you say you have a deal, and the numbers are good, they will partner with you and oversee the project.  You may have to give them most of the profit since it's your first deal, but it will be an education for sure.  There are investors in my meet up group that clearly advertise for people in the same situation as you.

Hi @Account Closed - Yes, I have often borrowed rehab costs from the HML. They will loan you a percentage of the purchase price and a percentage of the rehab costs. You have to actually have to prove the work is finished (in phases) to get a "draw".

They will not loan more than you need. So if they say they lend 60% of the ARV and you only need 55%, then that is all they will loan. However, if the loan is already stated and you come in under budget (rarely happens), they will disperse the remainder of the rehab draw to you when construction is finished. They won't help you if you are over budget.

I hope that helps.

You might reach out to them and ask.  I was already active when they started that program, so they reached out to me.

Danny - yes, they sell the property "as-is" and you are responsible for any and all due diligence.  No, there is no inspection period.

 1. They have let me out of a few really awful properties.  One the black mold was so bad and mushrooms were growing on the basement wall.  My account manager told me I couldn't back out due to mushrooms.

Another one was pretty interesting - a good 120 feet of seawall on a half acre lot in Florida (on the water).  As it turned out 40 feet of the seawall had eroded.  Since seawalls require federal permits they let me out.

There are times where further damage occurred during the escrow period.  Pictures and proof allowed me out of that too.

The don't let you out because you didn't do all of your due diligence.  I research the pictures and I even go back in time to find when it was listed as a short sale, or even a time when the current borrower bought the property.  I can find bits of information like, "Roof replaced 3 years ago", etc.  That helps me a lot.

Mean squatters.  That was another good one.

2.  Ask for title insurance.  I was about to buy a property for $28k via QCD, but I requested title insurance.  That uncovered a million dollar lien.  I got out of that one too.  I always let the people know that I will always ask for title insurance just in case they aren't sure.

Right now I'm finding a lot of properties in rural/gang areas and the reserves are way too high.  Just like any other acquisition strategy, keep watching the property.  At some point they realize they have priced themselves too high, and there are times they've come back to me and asked if I would still honor my bid.  Sweet!

I did a lot of research to determine the viability of this strategy.  I found that a lot of the tax overages (overages paid from tax deed sales) were properties that were of the deceased.  That was a path I didn't want to go down.

Hi Lyuba - When you bid on a property where they offer a QCD, with auction dot com, you do have the option of purchasing title insurance on your own.  That's what I've done every time.  There was actually one I bid on for $28k, and come to find out later there was a million dollar lien on the property.  I was able to blackout with no problems.

You also have the option to choose your own title company, which even though it costs more (sometimes), it's a lot easier since many of these closing companies the sellers hire are the "low-bid" type and have a hard time resulting in smooth closings.