All Forum Posts by: Ryan Detig

Hey BP.  I have come across a situation that I need some help with.  Below are the details and what I know.  I would love to get your feed back as to what my next best move is to make this deal go through as fast as possible (I know short sales are not short).

property location: TX

The current owner (only owner) died and the property is currently in probate process.  It is currently in pre-foreclosure as the payments have not been paid.  I have been communicating with the Executor of the Estate (the sister) and she wants nothing to do with the property and wants to sell it.  She has had an appraisal completed and the As-IS value per the appraisal (which she sent me) is 29k due to vandalism and neglect.  The remaining loan on the property is 68k ish.  She is very willing to work with me and has even said she will let her Probate Lawyer know that he can communicate with me directly regarding the sale of the property.  I'm not too educated with how this situation will/should transpire as there is a short sale wrapped up with probate process.  Will the probate lawyer be able to help communicate to the lender?  Any advice or general explanation of the probate process with this twist would be very helpful.  

@Peter Bardou It will cost you up front. For rough calculations they are about $40 per lock set depending on your set up. So for SFR with two doors it will be around $80. Apartments with 1 entry door per unit will be cheaper. One thing I did not mention is that the keys are stamped with DO NOT DUPLICATE on them and are commercial looking keys.

@Peter Bardou  Landlordlocks.com  They are great.  They have a multi-family system (MFS) which works well for me in TX as I am required to change the locks every turnover.  They will set you up with a master key and a control key.  Every set of tenant locks you buy will come with however many keys you want.  Tenant locks will be able to be controlled by your master key as well.  You can buy additional cores and when it is time to switch locks, you use your control key to change the core.  It takes literally 10 seconds.  Two months or two years down the road when you get another property, you call them up (I actually did this today) and order another set of locks.  Those locks will come with their own tenant keys but will already automatically be set up so the master key you already have works.  Costumer service is great.  Pricing is a little high compared to cheap homedepot locks but the convenience and quality is completely worth the extra 10-20 dollars.  

@Nick M.  Seems like you could do a owner finance with a balloon at whatever number of years you agree to.  You could also do a land contract (though I am less familiar with those).  Note I do not know the laws in New Jersey but it seems to me those would be two ways to solve your problem. 

@Shaun R.  Well done sir.  I love the colors.  I did almost the exact same colors and flooring for my first flip.  Glad to hear you did not stay in analysis paralysis any longer.   EDUCATION, ANALYSIS, ACTION :).  Your next deal will go much faster.  My words of advice is make sure you start getting your documentation in place regarding rental policies.  Now that you have done your first deal the next one will start coming quickly (if you want to grow fast) and you want to make sure you have rental policies and procedures in place so you are ready to grow.  One other thing I have found is after your first deal, the next deals that come your way end up being better deals.  Hopefully that will be the same for you.  For example my first buy and hold cost 60K and rents for 950 but my second deal was a triplex that cost 85K and rents for 2250.  I'm glad to hear you have jumped in and took action.  Again congrats.    

Win win win. I love finding deals where the seller wins and makes money(win), my hard money lender makes money (win), and I make money (win).

Joshua D Black I too came from, and am a fan of Dave. I think his approach is great for financially uneducated who are drowning in "bad" debt (consumer debt). I personally have no consumer debt and use my ability (w-2 income) to borrow money exclusively to buy things that positive cash flow. I have bought 6 rental units in the last 8 months without using any of my own money. The properties cash flow about 800 per month. There would have been no way for me to do that if I followed the "all debt is bad" philosophy. You just have to make sure you are disciplined and educated before buying. Biggerpockets is great for the education part.

Will Barnard For the most part I agree with your comment. My only counter would be if a business was wanting to take advantage of such thing as a series LLC, and that was not an option in the other state (but is an option in Texas) it might be worth paying Texas llc fees as well as the other states foreign fees. This is a relatively advanced topic but worth keeping in mind I think. Note I'm not a lawyer or cpa.

@Cody Rogier  This seems a little tight but that might be great for your market.  I currently have a 85k property (3 units) that rents for 2250/month.  I would just make sure that it is a good deal in your market. To directly answer your question, being in MI and a 4-plex would you have to account for landscaping/mowing/snow removal?  

@Aaron Rowzee @James Gallen @Alex Saleeby  Something to look into

Thanks for the post @Gaylene Rogers lonergan