All Forum Posts by: Rick Stein

Hi, Michael,

  I will also offer my 2 cents. One of the biggest challenges you have is not being around to look over your rental property. You could have a partner or use a property manager. Having the $50K is nice, but having access to money is equally as important than actually having money. 20% down is nice but not necessary. For instance, I own several rental properties putting 10% down and having the owner hold paper. I much prefer dealing with the owner than a bank. It gives you a great deal more flexibility. Buying one rental property a year is more than doable.Just make certain you are buying them in desirable areas which will attract responsible tenants. I learned the hard way years ago that just because a property can be purchased on the cheap doesn't make it a good property, especially if you have to pack a gun to get your rent.Just some random thoughts. And, thanks for your service. Good luck!

Jerry is correct, I live and work in NJ. You absolutely need to know your state laws so you don't get burned.

Here is another possibility. Make contact with a tax lien buyer, prefab ly a corporation as they will have a godly number if them and see if they are willing to assign a lien to you that is at the twn year period or at OST ( order setting time) which is the deadline the judge gives the property owner to come up with the money. Even if they assign the lien to you at a small premium, you can still make money on it depending upon some of the criteria I have mentioned. 

If you want to own it, how much will you have to put into it before you own it? That is difficult to say as you do not know the condition it will be in when  you finally finish the foreclosure process. Is the property currently occupied? Is someone maintaining the property. What is the likelyhood that the lien will be or not be redeemed? If it is redeemed you can make a good return depending upon the interest rate. I am not suggesting that you do or do not invest in the tax lien. I am just suggesting you consider these questions prior to doing so.

Hi, Ed,

The statutory redemption period in Florida is. 2 years, which means that once you purchase the lien, the property owner has 2 years to come up with the money. Also, tax sales are competitive, the max interest rate is 18% but it can be bid down at the auction. Here is the question, if the lien is not redeemed, do you want to own the property?That meat seem like a simple question, but if the property is trashed or in a terrible area, you may jot want it.  If you do want it, you better keep paying the taxes or someone else can buy  a subsequent lien and after 2 years foreclose on the property and you get nothing. If you do not pay subsequent taxes and then wish to forecloses,  you will need to lay those lien holders. Naturally, you will also have to pay an attorneys to complete the foreclosure for you. I am not trying to dissuade you from doing it, but it is not a " can't miss" proposition.

Good luck

HiTheresa,

 Figure about 3% on closing costs. Figure about $50/ mo for insurance. Your PITi would be about $473. Be careful on those estimates for repairs. Are they your estimate a or from a GC THEY SEEM LOW BIT I have not seen the property. Sorry, I do not know what  a basement window would cost. But if your numbers are correct, your cash flow would be about $450/mo which is very attractive. How is the area? That's critical. If the area is a high crime area, it is not worth it as you will get a low quality tenant and have difficulty selling the property. Just my thoughts based on limited information.

Good luck.

In purchasing buy and hold properties, I am willing to pay even marker at value if I can get good terms. I own several properties utilizing seller financing. Would you rather borrow $100,000 at 6% or $120,000 at 4%. I won't pay more than market, but if the numbers work at market value, that's fine with me. Cash flow is king! By the way, $100 per door won't cut it for me. When the tenants move out and you and you replace the carpet, paint, etc, that money will be spent and then some. I am looking for a minimum of $300/door. 

Hi, Tidd and welcome to the group.i am also based in Mercer County and I am a member if SJREIA. I have found it invaluable in terms of education and networking. Check out their website and calender of events. Go to SJREIA.ORG. I would definitely go to the Mercer Sub group meeting in Trenton on 2/19 I will be there. You want to get all the education you can. I have been in the real estate biz for 29 years and can not see myself doing envy thing else.it is a wonderful and exciting career. 

does that mean that you can't go to contract before 90 days or you can go to contract within the 90 day period, but can,t close before 90 days ?

Thanks

the due in sale clause states that the lender MAY call the loan. You should definitely speak to the lender first and see if they are willing to allow you to take over the mortgage. If it is non performing, they may very well say "yes". Naturally, you would need to her the acceptance in writing. I hope that helps a bit.