All Forum Posts by: Wendell De Guzman

Shawn Dandridge, yes you have to buy the HOA lien and what your mentioned earlier is the Protecting Tenants in Foreclosure Act (where the bank has to honor the lease). But it's not that simple. Matt Devincenzo is correct in saying that some mortgages have assignment of rents.

In Florida, a HOA lien is a "super lien" (sort of equal to the 1st mortgage). The HOA can file foreclosure vs. the 1st mortgage holder. In other states, I am not sure.

You need knowledge of foreclosure law in your state as well as rights of HOAs. In some states, they get right of possession. How it conflicts with the PTFA, I do not know right now. I suggest you talk to a foreclosure attorney in your state.

I have some money coming in and would like to be a transactional funder. Do you have any advice? How do I ensure the money is lent out every month? How do I compete with a plethora of transactional funders out there? What are the watch outs? How do I ensure the money is safe (say when the deal does not close)?

Thanks in advance for your help!

Here's the script that I use for motivated sellers. The acronym is WOWPReLo so you can remember it.

W - tell me, what do you think houses in your neighborhood sells for or what is your property WORTH? (now for vacant properties with out-of-state owners, you may want to skip this question and just find out based on the address how much the house is worth because most likely they do not know what they are worth)
O - how much do you OWE? Are you behind on your mortgage?
W - WHY are you selling? WHAT will you use the money for? (these 2 questions are critical in understanding the seller's motivation)
P - tell me more about the PROPERTY (number of bed/bath/square feet/how old is it/etc?)
Re- does it need any repairs or renovation?
Lo - "If I offer you all cash and close in 2 weeks, what is the Lowest price you will accept?" (always follow it up with: "Is that the best you can do?")

Motivated sellers are easy to spot. If they have no issue telling you how much do they owe and they tell you they need to sell because of urgent reasons, then they are motivated.

If they want full price, they don't tell you what their loan balance is, or they are just testing the waters to find out how much they can sell their house for, they are NOT motivated sellers.

Hope this helps!

Rhonda E. and Linda B., thanks. I've decided not to use them based on your recommendations. You have saved me good money.

BP rocks!

To return the favor, if you want to learn wholesaling real estate or how to evaluate multifamily apartment buildings, let me know. I have some experience in both areas and I can help you and other responsive members of BP.

Thank you guys for your opinions.

Our set up is correct and legal. To generalize that all law firms can't save people's homes through foreclosure defense strategies is not fair. We have helped a lot of homeowners save & keep their homes from foreclosure. As far as I'm concerned, we have happy clients over the 5 years plus we are doing this.

It's apparent you have your own niche that works for you...and we have our own niche that works for us. Thank you.

At minimum, the tenant-applicant should have:
1) Income that is 3 times the rent
2) No eviction in the past 5 years
3) No felony in the past 5 years

BK may be acceptable and tenant may need to put more $$$

We go with a POINT system where they can increase their points if...
1) they can show they pay their utility bills on time (because if they are willing to miss or be late with their water bill, there's a good chance they are willing to be late on the rent too)
2) they have stable employment (1 year, or preferably 5 years or more)
3) their income is not based on seasonal or unstable sources (e.g., commissions, child support, cutting the grass, shoveling snow, etc)
4) low debts (except mortgage)
5) if they submit our requirements readily or they are easy to work with, they get additional points

The applicant with the highest points while meeting the above minimum gets the house. Of course we verify their employment and rental histories. We run credit, criminal and eviction checks.

This is the ideal rehab deal. This 3 bed/2 bath home is in a nice neighborhood in a Chicago suburb but it needs a lot of work. Here are the numbers:

After Repair Value - $210,000
Repairs - $30,000
Yours for only $99,900

Email me at [email protected] asap before this deal is snatched up.

Apartment buildings - the bigger, the better. I did more work managing my single family homes than my 100+ unit apartment complex.

The bigger property can afford a full time property manager and full time repair guy. Over-all the percentage I pay for PM & repairs &maintenance are lower than what I paid for single family homes.

In my opinion and based on experience, multi-unit apartments are better buy-and-hold assets vs. SFHs.

Of course you have to buy right. Only look at acquiring apartments (B,C properties) if the cash-on-cash return is at least 12% (in B & C areas). They are hard to find but they exist.

Of course use leverage..specially with today's low interest rates. Then 1031 exchange your way to bigger properties with more cashflow.

Mike B., ***********, Kevin Lochen, Steve Burk, hello my fellow "neighbors". It's good to see smart guys from Illinois :-)

Kevin, why do you think you have to start with residential first before going commercial?

Matt Whiteside, nice deal, lots of learning and thanks for sharing. By the way, I am not too far from you.

I love wholesaling as well and I have my share of difficult deals that almost did not turn out to be deals. I like your determination in making the deal work.