All Forum Posts by: Calvin N.

I have reached an agreement with a company that is holding a non perfomring note. It is the first mortgage on the property. I understand that I will have to file the foreclosure on the home and have an attorney that I am meeting with Friday to handle that. Do you use a standard real estate contract to buy a note or just a bill of sale? Thank you for your helpful input.

As in most real estate deals that are worth doing this one continues to have unexpected delays.

First, the attorney working on the title was not able to identify the holder of the note, based on names that I had given her. It was filed under a parent organization's name. I was able to get a clarification and had the note holder call my attorney to give her the details she needed. The title for the first note is now clear.

There is a second note that I had not discovered. No payments have been made in over 18 months, no foreclosure filed and the note is still held by the orginal note holder, Suntrust, the bank that gave the original loan for the 1st and 2nd mortgage.

There is a tax lien that we will pay to clear it up, plus penalties and interest.

After we purchase the note we must initiate the foreclosure. I have a foreclosure attorney that I talked to today and will meet with Friday to start this process. He said we have to get the paperwork in by next Wednesday in order to foreclose on the 1st Tuesday in April.

The city is set to demo the property on 28 March. I have to appear before the city municipal judge on 10 March to request a delay. The City Manager is working with me and since he is the "plantiff" he is very agreeable to delaying the demo so that we can save this home. As long as I present the progress we are making, show we have funds available for the rehab, contractors ready to work and a resonable timeline for completion we believe the judge will give us the time we request.

A lot wrong can still happen. I still feel that this will work and all the extra headaches for this flip will be worth it.

Nicely done, Kracker. Your flip and the numbers are very similar to the one my wife and I did last year. It feels great to complete it on time and on budget and then for it to sell so quickly. Ours sold in just two weeks. Your contractor does very nice work, too.

Best of luck in your next flip as I am sure you will do another one. Once you get hooked it is hard to stop. My wife and I just signed the contract on our second house to flip last week. It has the potential to make a lot more money than our first one. I know I will eventually get one that is a money loser, but hopefully not anytime soon.

Thanks for the information, Eric. You are correct...I don't have one! I think I will let the attorney handle it. They get paid to be the experts in that sort of thing. IF this deal works out, it will be the best deal I have found in my area. I hear people finding deals like this but have never seen one or heard of anyone getting something like this in my town. I will know in a few days if this is as good as it seems.

I am not even sure what a pacer account is! Tuesday the attorney should have all the details. Will post more then.

Thanks for the suggestions, John. The attorneys are checking the title and preparing the paperwork. I am still not clear how the bankruptcy was handled. I should have a clearer understanding of the details by Tuesday. I received all the documents from the note holder today and passed those to the attorney. More to come....

Well, it has taken a while but we were able to come to an agreement on price and terms with the note holder. My attorney is preparing the documents and conducting the title search today. I was calling and talking to the company that holds the note each week, keeping them informed of the city's plan to bulldoze the property. It looks like we will be purchasing the note for 30K, orginal balance is 135K. The orginal homeowner filed bankruptcy and turned the property back to the mortgage company. There are back taxes owed but no lien yet. I am in contact with the city and they are aware of my intentions to purchase and may require a bond to stop the demo in case we fail to rehab. More to follow!

Thanks for the suggestions, Kathy. I have tried contacting the owner with the information that I have. I found where she used to work but they would not provide any other information other than dates of employment. (I understand the legal reasons they don't say more.) I am still working with the note holder on purchasing it from them. Right now it is tied up between two different companies and their legal departments.

If I get closer to making the deal on the note then I will work hard to find the owner. I would much rather purchase it than have to foreclose.

Flipper, I agree that there are GA properties that do cash flow well, but where are they finding them at 30-40% of ARV, minus repairs? I am not seeing that kind of prices here in Georgia.

Thanks for your help.

I agree with Flipper about spraying on a knockdown finish on the paneling. One thing you need to be sure before trying to fill the groves is that the paneling is solid against the wall. If it will bend and bow the filler will crack and fall out.

Make sure there is sheetrock behind it. We remodeled a house last year with wood paneling. We started removing it and everything was going fine as we moved down the hallway. Nice, finished sheetrock was behind it. Before we got to the bedroom doors the sheetrock was there but it was not taped or mudded. When we got in the bedrooms, there was no sheetrock at all!

Best of luck.