All Forum Posts by: Son D.

@Mike D'Arrigo MI tactics of convincing no inspection pre-rehab was to play newbie's desire to get things done as soon as possible. They kept telling me that it would only interfere with the process and slow down the rehab since the team want to go in and work on it right away. After many times of hearing this I thought it make some sense. Besides who cares what it look like pre-rehab so long as I can get an inspection post-rehab right? I can hear readers groaning as they read my last statement. That's how green investors think. You hear things from people you trust and your mind does some mental gymnastics to justify it. But I did push for that post-rehab inspection. I'm sure everyone already know what happened.

@Welles Chan Did you ever find one? I'm also starting to look for one

@James Wise I'm starting to work on my next deal which I plan to put 25% down but still technically $0 down because 100% of that 25% down comes from my equity. Do you think that would work or am I being foolish and overextending?

I think you have to first consider where you are working once you move to mass, especially if it involves you actually commuting to or through Boston. Boston is small enough that you are about half an hour from anywhere but it may also take an hour for you to go from Boston to Boston. 

Secondly MF homes around here tend to be built around the 1900 and look like they haven't been updated in 50 years. A 2-family home around here would typically cost you about 500-600k or more. SFH can be 200k (rarer), 300k, 400k, or more depending on your living standards and how handy you are. Prices get cheaper as you move west but those cities are not considered to be as desirable as the ones you mentioned. Rents usually follow 0.5% rule. Experienced investors may get more if they know how to deal.

@Codi Clausen If you are looking to buy a property with a basement you have to consider whether the area is flat or sits on a curve and where the floor is compared to the surrounding area. A basement that is on top of a small hill may never flood. Or there are basements that are actually built above street level in a flat area that may never flood as well.

@Rick Imby I'm that guy and I wish I only paid 40K. MI properties back then went for mid 40K+ for "rehabs" and 70K+ for "newbuilds". My property is no where near the worst. You should check out others.

@Shiloh Lundahl These are just beginning to come out. They are not the only ones. I happen to know a big hammer that still hasn't struck yet. I don't know everything that's happening behind the scenes in those as I'm not a part of it. Those that are part of these processes willing remain completely silent until it is finished, which may still be years away. A lot of people who have only bought 1 property and sold for a loss would rather move on with their lives than dealing with the headache and heartache of prolonged litigation. Most people are also not willing to open themselves and go public with details of their mistake.

I personally decided to not join a lawsuit because my situation is pretty good compared to hundreds of others. I don't know whether it's because I started posting my own thread during the "rehab" phase or not, but it's the second best situation that I know of. They say in investing it doesn't matter if you're currently up or down, you only lose money when you sell. I haven't sold. I'm trying to turn the property around to get my savings back. It'll probably take years but I'm stubborn enough.

It's also pretty liberating once I decided not to join the lawsuits. When I was considering it I stayed away from public places like BP and stopped talking to other non MI victims about it. Now I think I'm the only one that will talk to everyone and anyone willing to discuss. The court of litigations may have its limitations but the court of public opinion is free and limitless. Long after we're done talking on this thread it'll still remain on search engine for others who are doing research on MI to read and learn. Having said that, please keep this thread alive as long as possible.

@Nancy Lucca this method is neither new nor a secret. There are plenty of YouTube videos about it. The idea is using the line of credit which utilizes simple interest to pay off mortgage which utilizes compound interest that make you pay off most of the interest first.

The only thing is since rates have been at historic lows these past 10 years, a real estate investor would rather use that line of credit to invest and make more money than what would be saved by paying off the mortgage.

We know for a fact that MI/OP people watch these forums and react through their actions. Ericka Thomas even made a BP account and made a post defending OP last year.

@Account Closed I can understand why even OP didn't know who own what. Some of the owners in my group checked title on their properties and found that the title company stuck OP spinoff LLCs along with owners' LLC on title. So OP still had a claim on the property after they sold it to investors.

Since "the email" came out at the very end of April, early May, word got around fast that someone carrying a gun went to tenants' homes and collected rent money in cash. So when owners' new management came to take over OP already took more rent money that never belonged to them. As for the rent from April, we received invoices from OP in mid-April that rents were collected but no payment was ever made. Blatant thieves.