All Forum Posts by: Simon Campbell

@Sean OToole I am talking about a basic simple search to check for additional liens and current ownership. IMO Anyone who bids on auction properties without having a clear picture of the title and the number of additional liens is taking a very big risk.

@Account Closed check out my website that is listed at the bottom of the post. That will get you started in the right direction. If you have any other questions, feel free to PM and I will try my hardest to answer them.

From what I gather, that insurance policy would not have any impact on the type of transaction - only on the actions of the title company. Your best security for a land contract is to have an attorney review the document and to have it recorded.

No problem, I completely understand your questions here. Valuing a tear down is the market value of the vacant land less demolition and hauling costs. 

The value of the land does not change whether it is vacant or improved. Dirt is dirt. The only way vacant land can alter in value is if utilities are accessed but if they are at the roadside, you are just fine. 

Hope that helps. 

Here is a formula that a lot of active wholesalers are using to compute whether a house will be a good deal or not. The formula is solving for the After Repair Value (ARV) or what would be known as the market value if in good condition.

(ARV x 70%) - Rehab Costs = Wholesale Price

Using this standard formula, your asking price would be $245,000. Don't get too greedy.

Wholesalers generally use the contingency that they can assign the contract as long as it is not a REO. Typically you will find home inspection contingencies along with financing ones.

Yeah I have to agree with @Susan M. here. It looks like this is only protective coverage against the title company that you are using. As long as they have a good business reputation then you shouldn't be worried. Imagine what suing a title company for fraud would do to their business. That should be enough to keep them honest.

Real estate has some similarities to the stock market. Buy low, sell high. Real estate markets shift from buyer's market to seller's market. When you are in a seller's market it can make sense to sell the less profitable investments and hold until a buyer market and reinvest in other profitable properties. But... if you have a property that is a good income generator with attractive financing that is creating a great cash on cash return then why sell it and go looking for another similar investment?

Oops, lets change the wording to "Look for areas that have a strong economy..." That's what I get for posting too late at night. zzzzzzzzzzz

Ohhhhhh that explains why you are looking out of the neighborhood. Look for areas that have strong economies and high rental demand. Look for rental rates that have not yet peaked. This will keep the initial purchase price low but if it looks like there could be a surge in employment, rents will rapidly increase and you sit to make a nice profit.