All Forum Posts by: TJ Nowitzki

For an older mobile home parks what are people typically using for the repair/cap ex per lot with no park owned homes? I read some older posts that mentioned $200 per lot. Geographically the park is located in the Sacramento area (in case location/weather is a factor)

Hi,

I have a deal I am looking into where the numbers make sense. The complication is that it looks like the seller acquired the property via a subject to deal.

1. 1. Property was going through foreclosure until subject to deal was done 2 years ago
2. 2. The property is now being foreclosed on again
3. 3. There is a combative tenant so financing is unlikely
4. 4. Mortgage is still in name of original owner but they did a grant deed to transfer title 2 years ago

My main issue is it looks like the "new" owner bought the property via a charitable corporation and then subsequently granted the property to their LLC (same person runs both). My main concern is the original seller getting screwed over or having been mislead.

If I don’t buy the property it will still go to a foreclosure auction (relatively soon) so I am still evaluating if I should come in with a cash offer and pay off all the liabilities.

1. 1. Not sure how excess proceeds from foreclosure would be split?
2. 2. Would letting the property go to foreclosure benefit the “original” owner more?

Thanks

Investment. I am aware that certain people can bid on it again. (My question was more clarifying if these types of properties get re-auctioned if a reserve is not met. My understanding is that this is not the case for court house step auctions) 

Hi,

I am looking into California courthouse step foreclosures and had a few questions:

1. If you are the winning bidder at the courthouse is it true that bank cannot decline the winning bid? They just credit bid up to the amount owed plus legal fees or bid as any other auction participant would if they want to buy the property in excess of the amount they are owed?

2. If you determine the home is not occupied after a successful bid at auction do you typically change the locks and secure the property prior to the deed recording? (I have read some do this the day they win the bid)

3. Can you take out a vacant property insurance policy the day you successfully bid? (Do you need to wait until it records?)

Also want to mention I am aware there are many other variables.

Thanks

The steps above are also assuming that I have cleared all known title defects and waited the 45 days.

I am aware I have to wait 15 day wait to get the trustees deed.

1. I buy the property at auction

2. I get the trustees deed mailed to me 15 days later

3. I take position

4. I renovate

5. I put property up for sale 

When I put the property up for sale will the buyer be able to get title insurance?

If I bought the property at auction as an LLC, waited the required amount of days, and then renovated and listed for sale. Once escrow is opened with new buyer will that buyer be able to get Title Insurance even though I don't currently have it?

SB 1079 basically gives certain people the ability to bid on the property after the trustee sale is complete. 

High level I think this explanation gives a rough idea (got info from private lender link)

“Eligible Bidders for Post-Auction

After the auction sale, any of the following types of bidders can out-bid a real estate investor:

• Tenant occupying the subject property
• Persons purchasing the property to make it their primary residence
• Non-Profit Organizations that promote affordable housing
• California state government entities”

“Here is the process created by SB 1079, after the auction sale:

• Within 15 days of the auction sale, Eligible Bidders must submit to the Trustee a non-binding Notice of Intent to Bid
  • If no notices are received, the Trustee transfers the deed to the auction’s winning bidder on Day 16.
• After the 15-day period, Eligible Bidders have 30 days to submit an actual bid along with a cashiers check for the full bid amount
  • Trustee will issue the deed to the highest Bidder.“

Thats correct I am not an eligible bidder (I don’t see how you can be an eligible bidder if you’re flipping the property as a business). The homes I would be buying are single family homes. If you can’t find title insurance how do you go about reselling the property to a retail consumer after rehab? Do you just provide a warranty deed to the buyer?

Hi all,

I am about to start buying properties at foreclosure auction in California. Does anyone have a recommendation for a title company that provides title insurance once the deed is recorded and I take possession? I am going to flip the properties so I am mainly concerned with the ability to resell the property to buyers who are using conventional financing. 

I’ve talked to a few title reps and cant seem to find what I am looking for.

Thanks