All Forum Posts by: Ryan Blake

@Sammy G. Thanks for the tip. I am guessing you flip the pre-auction because you are getting better rates. What have you had most success with when contacting pre-foreclosures; i.e. postcard, letter, call, or door knock? I will look into that and your company. Do you provide service nation-wide or just local to Houston?

@Eric James It is not easy. If it has a homestead exemption, the prior owner or heirs have 2-years to redeem the property. It very rarely happens but it clouds the title until the 2 years are up. I also have a friend who bought one as a flip and after 8 months struggled to get a title company to insure it even though there was no homestead filed. Evidently in the past year there was a court ruling where a property that was not filed as a homestead was someone's primary residence and they didn't have a homestead or even own any other property. The judge ruled that the homestead should have been there and turned the property back over to the original owner for the standard purchase prices plus 50%. 

It is a better idea to rent those houses for the first 2 years and then fix and flip or just continue to rent.

@Ronald Rohde I don't see how that can't be a win-win deal? :-P

@Ronald Rohde My direct mail campaign is targeting homes I drove. I have a list of about 200 but I have 2,500 postcards on their way to my house. I don't want to just buy off the same list as everyone else. It is just very time consuming driving those targeted neighborhoods and then looking up the tax rolls. 

That is why I am trying a website but I don't know if that will give me much traction either. I opted for the month to month service on a lead generating website in case it is a bust.

@Autumn Rankin I was all for it until I talked to someone and he told me that whole fiasco he went through even without a homestead. I think the only real safe bet is to just rent the property and then flip it when the renter leaves.

[[I am going to Bandera to do the whole "tourist" thing. What is there that I need to see? I will have 2 four year olds and a 2 year old. Thanks.]]

I don't have a whole lot of experience with this but have done a bunch of research in TX.

Tax liens always take first position. When the property is sold I believe those liens are dissolved. They would have had their chance to get the property back when the tax lien was initially filed.

The way to make your money back that I have been considering, is to do bare minimum for the neighborhood to get the house rented. Keep it rented for a few years to let the redemption period laps and then flipping. In Texas, the redemption period is 6 months unless there was a homestead exemption on the house in which case it becomes 2 years. I don't know what Colorado's redemption period is.

Be careful. I know someone here in TX who was planning a flip and waited the 6 months and got the house ready. The title company wouldn't give clear title because they were concerned that the owner or heir may claim that the house should have been homesteaded even though the paperwork was never filed. I am not sure about the legality involved in this and the guy was eventually able to find a title company that would supply insurance and clear title but something to be aware of.

Do you happen to know if there would be enough funds from the sale to cover the first and second lien? I have bought homes with multiple liens before but there has always been enough cash going out to cover both liens. My guess is this won't be and issue and the title company will just seperate out funds. They would need to get the seller's consent to do that and that could be what they are waiting on right now. As far as I know, this should not hold anything up.

As to your recourse on the money you spent, I don't think there is any way to get your inspection and appraisal fees back. Those will probably be a lost cause should you not close on the house. You will get your earnest money back assuming it was handled correctly and put into an escrow account.

Sorry to hear about the troubles but I hope you are able to close on your new home soon.

It is very tight up here in DFW.

-Auctions are going at about 85-90% of ARV less repairs

-MLS is getting bid up by owner-occupiers

-Wholesalers are a joke these days

I am in the process of starting my first direct mail campaign and just set up a "turnkey" lead site to see if that gives me any traction in off-market properties.

I know most flippers don't want to give away their lead funnel but I would appreciate any help y'all are able to give me.

Thanks in advance

-ryan-

There is more money in Dallas. I did my first 2 years out there and it was great. It is very tight in Fort Worth. I like working in that area I told you about. I do fix and flip and it is a good area but I know of at least 4 other flippers actively working the same 40 block area. Don’t get discouraged or emotionally attached to any one property and keep pushing on. If you spend the time, you will find what you are looking for.

@Michael K. I would suggest you look in the West Byers / Arlington Heights area. You won't find the value you would in South Fort Worth or out West on Las Vegas Trail but then again you won't have to live in either of those areas. West Byers / AH tend to have door costs of around $80k-$100k for 2/1 units if they need just a little work but nothing major.