All Forum Posts by: Oneil Guntner

@Steve Morris From my brief understanding the majority usually pay the tax lien and it is rare to find an owner that wouldn’t. I’m more interested in the return on interest for an investor who just has their money in a savings account right now

@John Underwood At the point that the time period for them to pay their tax lien expires what happens in your area? Do you have to assume the mortgage or can you let it be auctioned off to another investor?

@Pat L. What were some of the solutions that the owners came to you for?

@Tanner Sherman The goal would not for us to take over the mortgage but just get the interest off the tax lien payment. If it came to that I guess we would. I will look into the suggested reading I have not read that before. I’d be interested to see the annual interest that people are getting in my area.

I was recently listening to episode 293 of the BiggerPockets podcasts where Chad Carson talks about his tax lien strategy. Does Ventura County do this? It looked like they list homes for auctions but I didn't see anything about buying property tax notes. If you don't know about Ventura County maybe you can give more explanation to whether or not this is a good strategy. If I can figure out how this works I may be able to pull money that is just in a savings account accumulating practically 0% interest and give the investor a higher return on their money while also getting a small kickback for my effort. This may be a good way for me to side hustle some extra cash to save up for my first home purchase. The investor would have enough money to buy the house if it came to that. I wasn't sure if they get to just take over the mortgage? Also, what happens if multiple notes don't pay back are you then responsible for taking over all of them? I believe Chad had said that you get to decide the interest rate but I'm not sure if I heard that right. What is the average or fair interest rate amount for something like this? Any information helps, thank you!

Ventura County, California, has homes that are typically expensive for the young first time home buyers. There are multiple options to take and I wanted to seek other's opinions on this. There are some advantages and disadvantages to each situation. We could purchase a condo right now in the 250-300k that would be 2 bedrooms or a rare 3 bedroom in a semi-okay neighborhood but we feel comfortable living there since it's next to a lot of shopping centers and by my mother-in-law's house. I also have a one-year-old son so we take that into consideration but we have other parts of town we would not live in. This particular condo association covers water, sewer, and trash with the HOA that is $395/month. I work in property management so I will know how to look at their reserves to make sure that their reserves are at least somewhat in decent shape. We would be using an FHA loan and since I will be representing myself as the buyer and the broker is my Dad I will be rolling the full commission into the 3.5% down. This makes the downpayment very affordable and easy to accomplish when our lease ends. We are currently paying $1575/month plus utilities for a one-bedroom in a nice location. If we stay another year we would stay in the same location that we enjoy but move to the two-bedroom for $1,800/month plus utilities. The other option I'm weighing is to save up my money to use the power of an FHA loan to either buy a live-in flip or a duplex, triplex, quadplex which will become easier as I start earning more commissions and just live off my property management salary plus my partner's part-time job which helps cover her student loans and groceries. I'm guessing we would be able to get an extra 4-5 years of owning the condo and I can probably convince her to stay more years at the condo if we were working towards a goal of buying another property and that we would have more cash left over at the end of the month to still enjoy affordable fun activities.

@Brian Spies

Thank you for the comment. I agree it should be based on my personal goals which would probably be an even spread of everything. Scott Trench’s point about cutting out the big things versus the little things is one of my favorite lessons in the book. I think “I Will Teach You to Be Rich” may also talk about it but I’m a big advocate of not getting into a huge amount of debt over the big purchases in life like college, house, etc.. and then you can afford some small items here and there or even some more larger items every once in a while as well.

@Scott Trench

First of all, thank you so much for taking your time to comment. I’m on the second round of listening to your book on audible because you were in my top 10 I wanted to revisit this year which sparked this post.

I can relate to your example. I’m 24 and have 8,800 in my Roth 401k. I do have a $1,000 emergency fund saved up but besides that I’m just saving for a wedding. I have now made the purchase on a ring in which I did use credit card churning to get points since I saved up the cash. I’m anticipating I will start making commissions in 2020 forming a team with my mom on the residential side of real estate and I may be doing commercial lease renewals as well. That’s what I’m going to use to create the freedom of options you talk about in your book. I’m planning on reinvesting any commissions I earn.

Final Decision: I will continue investing in my 401k to get the free money

@George Blower That is good to know, I was assuming I was paying the taxes for the contributions.

@Eamonn McElroy honestly this is what I was thinking. I’m still putting $2400 a year in savings on top of this. I’ll just try to gain a higher income since that is such a high return on investment before the growth even happens.