All Forum Posts by: Roman M.

It depends on what you are looking for in an investment.  People that buy tax lien certificates mostly are not interested in getting title to the property.  For them it's investing for higher return.  If you want to get the property then you bid at tax deed auction. This is when you get the property with all the municipal violations that come with the property (so do your lien search before bidding). Only homestead property has 50% rule. If you buy non homestead you usually get it for about 10% of the assessed value unless the property is in huge demand and other sharks jump in and then bid it up to whatever they are willing to pay. 

Realistically if the property is of value then you might get it at 20% off. However if there are code and building violations that you might get it real cheap as not everyone wants to deal with those.  This is where real money is if you can mitigate those violations and get a discounted payoff.  I have seen a $1mln city of Miami violation for not having a number on the house and a $250,000 violation for not having grass cut.  Oh and don't forget about cross liens those can be a "Pandora box".

You got to do a lot of homework or you can get burned bad. 

This looks like a great program!

I manage 10 of my own and 6 for others. It's no biggie and I do it part time.

It can get stressful if properties are ran down to begin with as you will get tons of maintenance calls on items that should have been replaced a long time ago and will have higher turn over.

Managing 30 properties will be a full time job so if that is what you want then go for it. You can still do it as one person as long as you have good maintenance guy and can get him to show up (I had problem with that). 

Try to automate rent collections, bill payments and management reporting and you should be fine. Get a team of contractors for HVAC, plumber, electrician and reliable handyman, eviction attorney. Do that before you deploy and it will be easy sailing.

For me generating reports for owners is the most time consuming right now. I have a separate bank account for each client so there is no commingling of funds or confusion. 

So in 2006 most purchasers used 90% to 100% financing and it was easy for them to just walk away.  In today's market probably 60% of buys are all cash and 40% are with supstantial down payment. So the quality of the buyers are much higher and in that sense the markets aren't the same and is much stronger and stable. Also rents are 50% higher then in 2006 and re taxes are lower. 

It all depends on what your strategy is. If you in for long term cash flow and your current flow is comfortable then why change to unknown market. 

If your target is to cash out and pay off your debt and get out then probably a good time to plan your sales.

I don't think that appreciation is as high in mid west as in Florida however you may find higher cash flow deals then here and can get higher returns if you sell high in Florida and buy low in Mid west. Just don't forget to factor in been an absentee landlord and add on that as an extra expense.

anywhere north outside of Miami still makes sense if the area is in good rental market

If you are planning to refi at some point why not talk to the lender first to see what are their qualifications for single family and multifamily. This way you will know if you will qualify for refi down the road.  This way there are no surprises later on when you try to refi. 

I think it's better if you try to get financing lined up before you plan to buy (you don't pay additional closing fees).  Since you have a sizeable down payment now, I suggest to go after a four-plex.  The right lender will not look at your total obligation ratio and will qualify you on the income that the property brings (make sure property is leased so they will count that income).  They will look at your credit and experience and if you have enough in reserves.  It's better if you go after properties that have financials available to present to the lender.  I know TD Bank lends on Income Producing property and recently I found out about another lender that lends on income properties in all 3 states you are looking at. 

Pick a market and find out what are their lending requirements are for that market.

Pick a market that you like and look for rental rates history (realtor probably can help you or a management co that you will probably need).

I tried to take his class last year in Miami with a friend of mine but it got cancelled. I think there wasn't enough people. I tried to get in touch with Wright but could not find a phone number or any contact info. I will be interested but live in Miami. You have the dates yet?

nice comeback! Education cost money and you have gotten it in the first round. Set your own rules and never break them again and you will succeed.

Return of the investment is far more important then return on the investment. So don't forget to do due diligence on past payment history, asset condition, BPO on property value, drive by, etc. Remember that you might own this property if things go wrong. So ask yourself this question: will you buy this property for $25,000?

Do a google search on loan purchase due diligence and should be able to find a good list to go off.

There is also an ROI formula in excel that you can run to see what is your ROI. If you can't find it, click help in excel and it will come up.

Not sure understand the deal.  Is it $900 or $1,100 a month on existing note or you looking to fund a deal? Is it first or 2nd? What is the property value. What do you mean buy back at $75,000?