All Forum Posts by: Steve Sherman

I recently purchased a duplex at a St. Louis City Tax Sale. The preliminary title report showed that there is a Federal Tax Lien attached to the property, which doesn't automatically get wiped out through the Tax Deed Auction sale. However, I was told that these Federal IRS tax liens follow the person and not the property. Now that I purchased the property and the title is in my name, I want to get rid of this tax lien that came from the previous owner. Does anyone have experience getting these tax liens waived/discharged? Thank you.

@Paul D Smith, if Boston is something you can't afford, you should be looking into out of state markets with cashflow potential. David Greene's book on long distance real estate investing is a great entry point, before making any serious decisions. You also want to assess your own risk tolerance. Do you prefer to own in A/B class neighborhoods with great tenants and less cashflow, or can you deal with riskier tenants in C/D class neighborhoods, which may bring you greater returns. Definitely, a lot of opportunities in real estate investing. Good luck in your journey.

1. Still a realistic strategy, if you can qualify for a traditional loan and if you stick to cashflowing markets in the Midwest. Most/all coastal markets are overpriced at this point.

We're withholding rent because our Christmas tree was not provided.

@Jonathan W Dowling You want to look at population growth, quality of schools, unemployment rate and crime rates. A lot cities are patchy, meaning an A class block is a few blocks away from some really bad blocks with gun shots and murders. If you are looking to buy properties in such markets, make sure you acquaint yourself with that particular area, driving around daytime and at night to make sure nothing bad is goimg on there. I also like to stop by a local mom and pop store or restaurant in potential invesment areas and ask around how they feel about the neighborhood.

@Jeff Minser That’s weird. When I sold a house with a 1031 exchange, tge buyer didn’t have to do anything. As a seller, you must specify somewhere in the docs that you are selling with a 1031 involved and there will be an intermediary holding your funds until you identify your replacement property. Don’t remember my buyer getting involved at all.

@Travis Bryant I would look for hard money lenders in your area. Yes, you would borrow at 10-15% a year, but the idea is to take out a traditional loan as soon as you get the property, to pay off the high-priced hard money lenders who lent you the money. I believe, that within the 1st half a year of ownership, you can get the traditional financing from a bank based on the delayed financing exemption principle, which allows you to take out a traditional loan with the first half a year of ownership.

@abi since you don’t know in what condition the unit was is, when she moved in, it’s obviously hard to assess the damages that the tenant has caused. Of course, it’s always good to receive a walkthrough report from the sellers, which would indicate in which condition the unit was presented to your current tenant. Re: raising sec deposit: if the rent roll that you got from the sellers and your experience with the tenant, indicate that she is responsible and always pays her rent on time, I probably would not be raising the sec. deposit. However, I would gradually raise rents to bring them closer to the market rents.

@Jay Hinrichs alrhough I haven’t been to Cleveland, but you have to do real due dilligence, before putting your money in. Cleveland, just like many other good cities, took a huge plunge during the 2007 recession. Spend at least a week there and literally drive around every neighborhood in the day and at night, to understand what’s good and what’s not and to really assess your risk tollerance. That, paired with economic statistics of the city, occupancy levels on particular blocks where you wanna buy, should help make an educated decision on this.

@Jackson Howell If you are looking to ease yourself into the market, higher price point will insure you a better neighborhood and less headache with tenants, assuming your strategy is Cashflow/ buy&hold. In my opinion, the first deal should always be a little easier, before you increase your tolerance to something more risky with higher reward potential.