All Forum Posts by: Todd Powell

@Justin Lee Taylor I also know people who thought they bought a first lien, but bought a second!  Research and confidence is paramount if you decide to do this. @Jay Hinrichs could def weigh in on this one as he is a PRO

@Justin Lee Taylor I am a pretty seasoned investor, and my first time buying a Sheriff courthouse sale two years ago in Linn County, Or was quite the problem. I don't know about your state, but here in Oregon there are redemption rights, and the owner has many months to redeem on you. Further, there are massive companies contacting these people losing their homes and buying the rights for as little as $500 or $1000. So, when you think you were the lucky one at the auction and start working on it, you can lose it all. They have to pay you your purchase price! They can wait up to 6 months to surprise you with this. Lastly, there is NO title insurance and my people missed the $26,000 state tax lien, as their lawyers were smart enough to excuse themselves from the Sheriff sale, although no one could actually discover this.  A judicial sale is much cleaner than a Sheriff sale in Oregon, so buyer beware! I netted out at cost after months of rehab and selling the property outright with NO realtor! I got lucky

@Marko Zlatic  Great video you put together! I watched it yesterday and thought you nailed it! How did you build your RE and what and how many unit do you have? I noticed in your video you were advertising a finance company, but you said you have made it in RE so I was wondering as you seem very young. Good for you!

I have to admit, I was enamored these last couple of years watching Clayton Morris on his YouTube videos. I even told my son and others about this out of state phenomenon! I am not easily sold, but his convincing approach was quite compelling. Mind you, I never pulled the trigger myself. I own and manager 20 plus units, and have ownership in a 72 unit building, so I had some reservation about how easy this was. But, I watched his MANY videos where is basically saying, "Let Morris invest help you, we help with the rehab and get you great cash flow properties." He is absolutely SELLING is *** off for the good of the people? That is what is 51 minute new release YouTube video On March 27th is stating! Talk about double talk. I realize he wants to now distance himself from Oceanpointe, but at least own up that you were in bed with them, taking their kickbacks, and benefiting in every way!

As much as I want to believe they were the same victim as everyone else, I do not buy it. They claim in the recent video that buyers should know better and be aware that they were buying from another company. "We are not gurus, just helping along the way," they are claiming. They are supposed mouth pieces just stating their passions to help people. Again, they have played both sides of the fence clearly on this. I totally get that they probably did NOT start out trying to fleece anyone intentionally, but please step up today and state that you did mislead people intentionally, rather than just state you were the same helpless victims as everyone else. Clayton, you sold your *** off and got in bed with the wrong guy, a guy who was a felon and had known issues previously.

You tell me you can vet your future tenant, but you cannot vet your contactor and rental manager? Something is very wrong with this picture, and I have spent countless hours watching all the Morris videos. He has got to be accountable!  

I have done many deals, but never a flip with a partner. Here are some questions, if someone puts up all the money and I find and manager the flip, do we need to close 50/50 in escrow for tax purposes? Further, why would someone putting up all the money want my name on the deal legally for same interest?  I am curious how others have done paperwork and split the profits fairly for accountant and IRS and the end of the year.

@Julie Doran The ship sailed on past late fees, and you should have definitely not been as forgiving as you were. I would not trust anything this tenant says based on your post here. I would also keep any and all security deposit towards back rent and damages. Smoke smell does not get covered well with just paint from my experience. I had to use shellac once and bought a mask and eye protection as its pretty smelly stuff. In the future, post for every violation, every time. I have paid the price many times for being too nice, trust me.

@Joe Diaz well, the RE rules are always  location, location, location.  Long term appreciation and quality renters will arrive from best locations.  All that said, I would look at the numbers as far as cash flow as well, but I like looking at the total picture. I would not be afraid of a older building if you can make the numbers work, but I would not buy a newer building in a crime invested area. That's a bad deal.

@Dulce Beltran Interest starts the second you begin to draw the money out. They want to make their money :)

I have leveraged my personal home equity for the last 15 years, and has been the best source of cash. I started in 2001 with a $60,000 HELOC with B of A, and today have a $421,000 HELOC with KeyBank. The terms are a 15 year draw period, 90% LTV and prime -.25% rate. It was the best I could find two years ago. I know some would say I have been risky, but it was the safest and cheapest money I could find, and I have never used hard money at those outrageous fees and points. It helped me flip over 30 properties, and now holding 22 doors and ownership into a 72 unit building with partner. I have washed, rinsed and reused the money many times and now have that line maxed into solid investments. I am now using another HELOC to flip and pay down and off my home HELOC. Just my thoughts! Best of luck

@Will Gaston I am learning today that if one year of less, I can give proper notice 90 days before and not have to renew. It changes my system a little, but I can make that work. The 60 day no cause is a game changer for me with rehabbing old units and increasing rents. Oregon is now the National front runner of change, just not changes I am looking for.