All Forum Posts by: Josh Emory

You are probably right. It may just be an eviction after failure to complete contract. I've only done one eviction about 10 years ago and definitely didn't have CFDs in my plans. The contract did allow us to transfer the house and contract to if we decided. That was something we never did and only did the CFD to try not to burden this couple.

Thanks Larry. I wondered if he was still around. Think I used him for eviction about 10 years ago.

I own 5 properties in Topeka, KS. 4 are rentals managed by a company there, and 1 is a Contract for Deed. Anyway, Buyers in the contract for deed have been their 7 years. Payments started getting late in October, and then March's payment was returned for NSF. I have sent them a "Notice of Default" with 14 days to correct. If not corrected our contract says they are to be given a 15 days to vacate the property. I know laws are state specific, but any advice would help in case I need to foreclose. The contract/sale was never recorded on the deed.

For those wanting the horror story on how I got into this Contract for Deed, here you go....

Had all 5 properties rented, 2 two people I knew personally. After about 2 years of owning had to move out of state and hired someone to manage the properties. I couldn't even tell you what my process was for screening the management, but I failed miserably. Things went alright, for close to a year. The house currently in question, the manager said he had an older couple apply, but they were on fixed income and wanted to sign a two or three year lease so they knew they wouldn't have to move or incur additional expenses. Sounded great so we agreed.

Anyways after awhile, payments from management company started coming late. We started having to chase our payments, and fairly quickly decided to fire this guy. That's when the fun started! Turns out he represented himself as the owner of the property and sold it on Contract for Deed to the couple. He had collected a $5000 deposit from them, and also was collecting more from them on a monthly basis that what we had originally been renting it for and pocketing the difference. The contract he signed with them was extremely pro seller, and I think he figured he would eventually foreclose/evict them and we would never know.

The guy was a joke, fraud charges were filed by the DA on him, but going after him for any money would have been a waste of time. I felt bad for the couple, so we signed a new Contract for Deed with them. We raised the price from their original, since we did not get the down payment, but lowered the interest rate that we were charging to something a little more reasonable. In the end this kept their payment the same, I pocketed more on a monthly basis (difference that manager had been stealing) and I have had someone make timely payments for 5 years with no repair expenses on my part. Unfortunately that seems to be coming to an end.

Can you renegotiate with HUD after inspection. I know my earnest money is lost at this point if I don't close. Some issues came up inspection, they really don't effect my ability to get rent ready and hold, but could significantly effect the ease of selling at retail down the road. After inspection can I now lower my offer putting my earnest at risk or is my only option to cancel contract and then put in new bid and start over if I want house?

@Jeff M. I'm using RMS. haven't had any real issues. They have kept them pretty well rented. I feel my repair costs have been on the high side, but I think that has just as much to do with me being out of town and not in the best place to do anything other than except their recommendations. My only real concern with them is they have grown quite large and as you go to their website now, it seems much more geared towards selling their services instead of getting properties rented.

Thanks for the welcomes. @Michael Faulk I'm up in Benton. Currently purchasing here. I have been eyeballing a multi unit deal in Bossier, just been a little hesitant to jump in. @Engelo Rumora all my Kansas rentals are in Topeka. I definitely didn't mind the $0 down idea, I just didn't have much of a plan or goals set with those properties when I got them. More of a real estate is good investment so lets get some approach.

Hi BP, my name is Josh And I live in the Shreveport/Bossier City Louisiana area.

I'm a big podcast/audiobook listener, and found the BP podcast on stitcher a couple weeks ago. Took a little spring break trip (15 hour drive to Colorado) so got 30 hours of back episodes in, in one week. Needless to say I was ready to join up after returning home.

Background: I currently own 5 rental properties in Kansas with a partner. We purchased these 8-10 years ago. Definitely made all the beginner mistakes. Bought them all with $0 down, no real cash flow and not much in line for appreciation and really didn't get a deal. Me and my partner had decent incomes so cash flow wasn't our goal at the time. All are on 15 year notes so we are getting close to being in good shape. We both moved for work about 2 years after purchasing. So what little money there was goes to management fees now. Anyways, not far from having them paid off. Just tired of those especially if we have repairs or vacancies.

All that said, I found the podcast because after 2 moves, I've gotten serious about getting back into investing. Currently under contract for a HUD home 3/2 1800sq ft in great neighborhood (actually looked to move there when moving to Louisiana). Neighborhood has mix of late 70s/80s homes and brand new homes. ARV around 160K, new houses going up in the 200-250K range. Under contract for 113K, can make it rent ready for less than 10K and up to ARV for about 22K. Planning to keep as rental, but haven't decided what level I want to take it too. Rent $1500-$1700 depending on the updating. Not a home run, but should work out good. Hoping to add 2-3 more over the next year.

I look forward to learning from BP.