All Forum Posts by: Ryan MacDonald

The $305k is the estimated payoff balance on the property right now. The owner hasn't paid since July of 2015 so the accelerated interest and fees have increased the property balance from the $197k payoff in June of 2015 to the $305k payoff it appears to be now. Still working on getting the third party authorization approved to get final numbers so that is just an initial estimate on my part.

I currently have a pre-foreclosure property under contract that is scheduled to go to auction in 2 weeks.  I know with the short timeframe, I need to focus on postponing the foreclosure or getting it removed completely first and foremost. However, I know that if I do get it postponed/stopped, I will need to get the bank agree to a short sale in order for the deal to work.  I have never done one so I am looking for guidance in doing so as well as convincing the bank to agree to it.  Not sure what a bank might realistically take on the property.  Overall, here is the breakdown of what I am seeing.

Principal balance: $195K

Payoff: approximately $305K with late fees and such

Taxes: all paid and up to date

Repairs: $120K

ARV: $400K

Ideally I want to get the bank down as low as possible in order to make this worth my time. Luckily, the family has already given up on the property so I am wanting to take a shot at this to help improve my knowledge in the process and short sales determine better ways to do this in the future should I ever come across this again. Any guidance in this realm would be greatly appreciated.

Thanks for the info. That provides a lot of insight as I move forward. A follow up question I have is I'm seeing various people on my last has delinquent taxes on properties from 5+ years ago but nothing owed or paid since let's say 2012. I search the address and it looks like it has changed ownership at that point. If the property has been sold, how have the taxes not been paid and what happens at that point once the taxes aren't paid and the previous owner no longer has the property?

I've been looking at tax delinquent properties in Texas and have run across some that are 8, 9, 10+ years delinquent on property taxes and wonder how these haven't been sold at auction yet. I understand that at times, if the person has the property as homestead exempt and are elderly, the county won't usually foreclose on the property because they are elderly. Is this true? Is there a way one can purchase a tax deed certificate or something along those lines even though the county isn't moving forward in the foreclosure? Of course speaking to them directly and finding a solution to their problem is the optimal way to go, but if they know they can live in the house until they die without repercussion, then what incentive do they have to sell if the mortgage is paid for besides leaving it to their heirs if they have any? Just curious as I look to start marketing to these homes.

Smoking hot Fix and Flip opportunity in San Antonio Texas super hot market, Lavaca Historic District. Used to be a multifamily property with single family elevations. Currently a SFR 6 bedroom, 5 bath historic home with fantastic potential just outside of historic zone so no need to deal with all of the regulations if you don't want to. Beautiful location with tons of positive growth just minutes from down town and blocks from South Town. Not currently occupied so you can start work as soon as you close. Please let me know quickly if you are interested as we will be making a decision Monday evening 8/7/17. You don't want to miss out on this one!!!

Rehab cost = $120K - $150K

ARV = $470-$500K

Asking Price $214K

Hello,

I have a question relating to the signing of a home sale contract and the seller being declared mentally incompetent.  I recently got a home under contract at the beginning of April with the intentions of closing the home sale quickly as the seller was struggling financially and needed to sell the home in order to afford bills and buy food.  My contract is set to expire on Friday 4/28 but I was notified yesterday that the seller has been deemed mentally incompetent and will not be accessible by the state until Thursday 4/27.  

Doing some quick research, I understand that a judge can deem a contract null and void if the seller is deemed mentally incompetent and didn't understand the scope and consequences of the contract they were signing. However, I also understand that a judge can determine the contract executable if the person declared mentally incompetent was fully aware of the consequences for signing a contract.  I feel that since I had several phone conversations and met with the seller in person three times before signing the contract and they were completely aware that I was buying the home at a discount because I could close quickly using all cash, that this would make them fully aware of the terms of the contract and thus help me make a case for being able to continue with the contract. Does anyone have any experience with something like this with some possible advice?

I spoke to a fellow investor and they suggested that I continue with the contract until I can connect with the seller on Thursday to determine if he is still declared mentally incompetent or not so that I have the option to extend the contract.  So this is the route I will go for now.

Thanks!

Ryan

Contract is now recorded at the title company.  Took me a couple of days but all is now good.

Ken Min The house is completely paid off and I have not yet run a title report. Also the plan is to pay cash for it.

Hi all,

I am in the process of negotiating a contract for $55K on a home here in New Braunfels, TX that has a $200K ARV. The seller is in a tough spot financially and needs money fast and is considering accepting my offer tonight since they don't really have any other options.

This is my first time I have gone this far in my quest to find off market properties but I have trying to figure out how to draw up the contract in order to protect myself.  One item to note is that they need the money quickly and are asking that I rent the property back to them for 30 days so that they can find another place to live.  Their finances are so bad I am wanting to avoid this so that I or the end buyer don't have to go through the eviction process.

I have the TREC contract in front of me and I have heard that I should look at setting up a land trust in order to protect myself and I am also not sure if I want to wholesale the contract to a flipper wholetail it myself at a reduced amount.  What other items should I include in the contract?  If I am going to work with a partner on this deal (either as my private lender and/or partner to flip), is there a better way to fill out the contract? Any help would be greatly appreciated!

Cheers!

Welcome! I also live in NB. It's a great place. Maybe we'll run into each other soon.