All Forum Posts by: Roy Oliphant

@Marquis W.

As has been said, there is a significant difference between winding up somewhere and planning to go there.   With BK, if trouble drives you there, it may be a way out.  If you arrange things so that you purposely go there with assets you are hiding or mis-identifying the owner (else, how would this be wealth building) you are likely committing several felonies; bank fraud, wire fraud, mail fraud, BK fraud, etc.  Still all of that might save you some on housing costs as the government will likely provide you a small place to stay for several years.

@Jeff Flaherty

It does happen that a property with a mortgage gets to tax foreclosure (just using your term here as this process is different by state and tax sale type) the mortgage holder usually has a redemption right to pay the taxes (and possibly a penalty) and take over tax position. 

@Don Enrique

If the notification is not done correctly, many states allow the foreclosure to be overturned.  There certainly are properties where it is not economically prudent for the bank to take them due to all kinds of issues.  Still our experience is that if a mortgage is involved, you shouldn't plan on being able to keep the property.

@Tia Valentino

What will be your investment strategy?  Are you looking for income or properties? 

@David Van Brunt

Friend had managed properties for years.  Had a great tenant that paid on time.  Friend hadn't driven by in a while because the tenant was so good and the place always looked great, etc. Middle of the 4th year tenant misses the payment.  Call, no response.  Drive by and notices the yard isn't mowed.  Finally gets in the house and finds the tenant just walked.  Also finds the great tenant had never taken the trash to the curb but only thrown it into the garage.  Moved with the pile got so deep he couldn't throw more on it. 

Moral is payment record is important but ALWAYS remember it is your property and you need to check it regularly.

Do you have Tax Liens that no longer fit your goals?  For example, have not yet matured but you have better ways to invest?  Have matured but you find it too difficult or costly to pursue foreclosure?  We are interested in acquiring Tax Liens and Tax Deeds that have not yet delivered a fully marketable title.  We have years of experience in managing these properties through the minefield of Redemption and Contestability periods and are looking to expand our portfolio both in numbers and geography.

Let me know what you have and we will make an offer ASAP!

@Aaron K.

IMHO - the more specifics you give the better prepared they are for a lawsuit.  "Sorry, you did not qualify."  Nothing else is required unless you get deposed.

I suspect (though I do not have a personal experience to rely on) that once the squatter has a key, the cops will say it is a civil matter and you would have to go through eviction, even in Texas.  Notices and court dates, etc., probably 40 days before you can get the Sheriff to do a set out.   We put security systems in all our vacant properties so that we can (hopefully) show immediately they are there without permission as they cannot turn off the alarm.

Insurance would cover any vandalism but probably not the eviction costs and lost revenue.   

@Hunter Norsworthy

Hot market in Montgomery?  Really?  What is Montgomery doing to reclaim the hundreds of abandoned properties in that town?  There is so much opportunity.  Who is taking advantage of it?

Anyone think the change in management at Fair Park is a signal of pending neighborhood revitalization in that area?

@Winston Parks

Revenue (average occupancy * average room rate)

Operating Expense (utilities + payroll + maintenance + franchise fees + supplies and linens, etc)

Rev - OpExp = Operating Profit

So long as Op Profit > (debt service + desired ROI) it should be worth evaluating.

If you base all of this on the current numbers and then are able to improve room rates and/or occupancy rates you have a good investment.  Just make sure you have funding available (cash or commitments) to do the improvements necessary to raise the numbers.