All Forum Posts by: Tom Kentop Jr

@Kellie Alkayam

I've noticed people tend to sell in the end if they are expecting to lose the property.

You could either tell them that you need them to pay up to complete the deal and adjust your offer accordingly or you need to close before the auction date.

You may also be able to try contacting the county and see if the parcel can be removed if you supply them with a signed contract.

Depending on redemption rights etc you may be able to place a lien sighting the contract to purchase if you can't stop the auction or have the ability to close. Then either attend the auction and see if you can buy it for a steal or claim redemption rights if someone else wins.

Just a few ideas both in and out of the box.

Looking to connect with anyone who has had experience with purchasing at a tax deed auction in NY.

There is one coming up and I've identified properties of interest. (I have drove them, searched county tax info and requested for any violations from the town)

I will wait with this narrowed list until about 1 week prior to auction to reach out to the county to confirm parcels are still available and have not been paid up. (Eventhough the county waits 3 years to bring to auction) I will also be confirming the redemption period for lein holders.

I think it would be prudent to perform a title search for each property prior to attending. My thought is the $75-150 it will cost is better than bidding and laying out the 30% down before starting the process..$100 for the search seems better than $3-15K for a lost deposit.

Plan is to narrow down to 2/3 parcels, have the due diligence research completed, go to the auction with firm maximum bids, Win (at least something), either recoup my bid plus interest if a lien holder wants to maintain interest or wait the redemption period, go through quiet title process and either sell the property or keep it for CF.

Any additional advice would be greatly appreciated. Everything I am considering are non owner occupied multifamily properties.

I am in the process of purchasing my first investment property (Triplex) which I plan to live in for the short term. I plan on purchasing with a primary residence loan rather than investment loan for the favorable terms.

I am also in the process of selecting and building a modular home which WILL become my primary residence.

Here are the questions...

-How will the first "primary" mortgage be looked at while applying for my build loan(which will be converted to a primary loan apon completion)?

-Will me getting that first loan as a primary be an issue considering I plan to receive both loans within months of one another?

Should I just forget the first loan all together and purchase the property for cash and refi after completing my construction loan to get my money back..??

@Arif Siddiqi

If you really want to move everything into an LLC but individual values are too low to refi(or can't be done in the LLC), have you looked into a portfolio loan?

You'll need to ask around to see who can do it around you. The length of time of ownership etc will come into play but may be worth checking out.

Looking to connect with anyone who has had experience with purchasing at a tax deed auction in NY.

There is one coming up and I've started identifying properties of potential interest.

My next step is driving the properties to further narrow down parcels to focus on.

I will wait with this narrowed list until about 1 week prior to auction to reach out to the county to confirm parcels are still available and have not been paid up. (Eventhough the county waits 3 years to bring to auction) I will also be confirming the redemption period for lein holders.

I think it would be prudent to perform a title search for each property prior to attending. My thought is the $75-150 it will cost is better than bidding and laying out the 30% down before starting the process..$100 for the search seems better than $3-15K for a lost deposit.

Plan is to narrow down to 2/3 parcels, have the due diligence research completed, go to the auction with firm maximum bids, Win (at least something), either recoup my bid plus interest if a lien holder wants to maintain interest or wait the redemption period, go through quiet title process and either sell the property/ keep it if it requires little work.

Any additional advice would be greatly appreciated. Everything I am considering are non owner occupied multifamily properties.

@Randy L. Baab

I don't know if there ever is a time.

My opinion would be to make sure you estate plan for the future so that your properties/ income can transition to family or charity of your choice with as little tax as possible.

All properties which cash flow enough can be transferred to a PM while you still make residual income. If any don't then I'd sell those and use the proceeds for a RR Cullinan.. or anything else that makes you happy. At that point when you're ready you deserve to reap some benefits.

I am in the process of purchasing my first investment property (Triplex) which I plan to live in for the short term. I plan on purchasing with a primary residence loan rather than investment loan for the favorable terms.

I am also in the process of selecting and building a modular home which WILL become my primary residence.

Here is the question...

How will the first "primary" mortgage be looked at while applying for my build loan(which will be converted to a primary loan apon completion)?

Will me getting that first loan as a primary be an issue considering I plan to receive both loans within months of one another?

Should I just forget the first loan all together and purchase the property for cash and refi after completing my construction loan to get my money back..??

Love to hear if anyone has been through this themselves.

Will

@Jaysen Medhurst

Good idea. I noticed a lot of 1 bd units had electric heat but not many with 2 bedrooms.

I'll ask my realtor specifically about that.

In our initial conversation she agreed rents could be increased on this particular property so it'll be good to find out some more specifics.

@Frank Geiger

Management around me is 8-10%

I calculate it at 5% because I plan to manage myself.

As I type that I think I should bump it to 10% in the event PM becomes more favorable it is already calculated appropriately.

@Frank Geiger

You're probably right, CapX could go up.

My justification was, It isn't a huge property. Only 1 roof and uses electric heat so no boilers etc..

5% is my generic amount calculated for something in good condition. Should I consider higher?