All Forum Posts by: Peter Crabtree

I am finally seeing a light at the end of the tunnel on my duplex rehab and am starting to move towards renting. Thinking ahead, does anyone have any recommendations for the refinancing step? Unfortunately I am over budget, so I probably won't get all my down payment and rehab cost back out, so the higher percentage loan to value the better. I haven't had much luck talking to local branches. I would like to work with a local bank (Knoxville / East TN) but good terms trumps keeping local. I'm also aware I will probably have to wait until the property is "seasoned" before I can proceed on this phase. Any suggestions are greatly appreciated!

Ok, forgive my ignorance, but I am working on unconventional methods for finding deals (i.e. direct mail and preferclosures). But i have a few questions...

Preforclosures...

-When the foreclosure auction notice is posted in the papers (2-4 weeks prior to auction around here) is it too late to pursue a purchase before auction? If that is on a case by case basis how can I know?

-When the notice lists "Other interested parties", does that mean there are additional liens on the property? 

-If I pursue the house at auction, can I have a title search done prior to auction? If not, how do I protect myself against additional liens against the property?

In the direct mail area...

-What is the best approach for first contact? (I am planning on starting with hand written Yellow letters). Keep it bare bones - "Name, I want to buy your house, contact me at..." or should I try to list some benefits that may apply to them in the transaction?

-Should I get a response, what are the most important pieces of information to gather before making an offer? Obviously the payoff on the property, any additional liens, known major repairs, taxes owed, and my own assessment while there. Am I missing anything?

I am about to jump into direct mail with both feet regardless, but I would prefer to be as informed as possible before I do.

Also, it is important to me to be ethical above everything else. I don't want to exploit anyone no matter how much I stand to gain from it. If I cannot serve or bring value to the seller in some form I'm not sure that I want any part of the deal. I would love to hear some insight or opinions on that from some experienced investors.

@Benjamin Barredo I haven't posted about that deal as I am fairly new to BP. It was a little unconventional. When I decided to move forward I began looking for properties and also working on financing. I borrowed from my 401-k for the down payment and rehab costs. A gentleman at a local bank told me they didn't have any loan options to suite my needs, but they did have a two homes they had just foreclosed on. Long story short, I ended up arranging financing from another bank and buying one of those properties directly from that bank.

This is no big amazing success story, but I am getting the ball rolling, and that is exciting for me! I have accepted an offer on a single family that I bought as a foreclosure in 2012. I have rented it steadily for the past four years with a $300 per month cash flow. I have not kept excellent records on expenses, but I am estimating this to be a $20k/4 year Buy and Hold deal. I also just closed on a foreclosed duplex (in Morristown, TN) which I plan to BRRRR. I should have it rehabbed in a few months and can begin screening renters. Lastly, I just closed on a HELOC on our primary residence, giving me a decent amount to draw on for down payments and rehab costs. I am hoping to buy 3 more duplexes over the next 18-20 months, cash flowing approx. $2,000 per month. I am also looking keeping an eye out for good potential flips. I am still fine tuning my long term plan, but the goal is to eventually be working in real estate full time.

(Keyword knoxville)

Those are the predominant species. But we have native trout in the mountains and stocked trout in the dam fed tail waters. My dad was from Eugen, OR, but I never got the chance to try out fly fishing on our visits out there. One day though...

Back on topic, I am going to write a letter to the home owners and see what happens. I figure I have nothing to lose. Thank you for the input gentlemen.

Thanks @William Hochstedler. If they have filed, wouldn't that prevent them from being able to sell?

@Jay Hinrichs

@Jay Hinrichs, thanks. I caught that one in the Smoky Mountains here in TN.

I found a great foreclosed property a few weeks ago that was supposed to go up for auction at the local courthouse on June 14th. The auction for this particular property was canceled at the last minute. Is there are way I can find out what is going on with it? If it is still in the foreclosure process, I am thinking about contacting the owners to see if they might be interested in a short sale. All advice is welcome, I am very much a rookie here.

Thanks

Thanks, Pavak. I haven't looked much into the Knoxville market. I work 50+ hrs a week, so I am staying close to home right now. I have 1 rental in Jefferson City near Carson Newman Univ. I am currently looking for another rental or a flip.

Hello, my Name is Peter Crabtree. I live and work in Jefferson County - between Knoxville and the Tri-Cities in beautiful East TN. I have had one rental since 2012, but am looking to invest more aggressively with a goal of financial independence as full time real estate investor. I am very green, but hungry. I would appreciate any words of wisdom that I can glean as I begin this journey.

What are the risks of purchasing a foreclosed property at auction?