All Forum Posts by: Ken Brevett

Thanks Chad and Rehab702. Your suggestions/advice is highly appreciated.

My wife and I are planning to venture into rental property investments. Someone suggested that we start with a multi-family home.

Our Broker found a property with the following specs:

List price: $369,000.00
# Efficiencies: 1 ........... Average monthly rent:$495.00
# One bedrooms: 1 ........... " " " $450.00
# Two bedrooms: 2 ........... " " " $750.00
Total units: 4 ........... Annual gross income $29,040.00
Gross month rent $2,420.00 Annual expenses: $2,670.00

My questions:
1. Is there a set strategy to determine rentability of property before buying?
2. How much is considered a reasonable income after expenses?
3. Is proximity to home a critical consideration when deciding on where to purchase rental property?

Blessings to you

In my newbie introduction I mentioned my expertise in pre-purchase research of delinquent properties (Tax and Foreclosure). This thread has evolved into discussions I believe would be more appropriate for this area of the Forum. Is there a way to continue the discussion here without terminating the thread?

Thanks and stay blessed

Yes and no .......

Conditions of sale are almost always unique to each jurisdiction. In some cases State laws dictate these conditions. I find this scenario among the most favorable because every Municipality in that State has a consistent policy. When Municipalities enjoy autonomy it's difficult to keep up with the conditions for that State. Either way, if I may say so myself, there is absolutely no substitute for in-depth research.

I have seen enough successes (and failures) to be able to say with confidence that the conscientious investor can make very good money in delinquent real estate.

BTW, is there a way to continue this thread in the section of the forum that focuses on the topic being discussed here?

Stay blessed

Here is a direct quote from Washington DC's Office of Tax and Revenue:
"Legal fees due and owing to the Tax Sale purchaser should only be paid after the taxes, assessments, fees, and other costs to the District of Columbia have been paid".

Stay blessed
Ken

This may not be an accurate understanding of the process.

If MD and Baltimore City is anything like other municipalities, the percentages you mention are the legal limit. Because it's a bidding process (and in this case the winner is the lowest bidder), what started out as 24% could end up significantly less.

However low it goes however, the ROI will almost always be higher than traditional sources. You should however bear in mind that large investment managers are now focusing on Tax Liens so you are up against bidders who by reason of their purchasing power can live with a lower interest rate. Put simply, if you purchase five $100.00 liens at 6%, your return is $30.00. If Mr. Deep Pocket purchases fifty his return is $300.00.

Regarding Tax Deed, many people use my service because of the "Buyer Beware" clause in Tax Deed auctions. Again, I cannot speak with authority about your preferred jurisdictions. I do know however that most municipalities expect potential bidders to conduct their own due diligence.

There is a significant difference between Tax Deed auction and Tax Lien auction.

Many people don't know this and end up purchasing worthless information.

Are you sure Tax Liens are what you want to purchase?

Thanks for having me.

It's hard to explain the personal satisfaction I feel when the information I provide prevents someone from:
[list]Paying too much at a Tax Deed or Foreclosure auction,
Buying a vacant lot that is not buildable
Buying a property that's loaded down with all kinds of encumbrances[/list:u]
Information I provide also allow a bidder to continue bidding when others stop because they don't know the market value of the property and correspondingly, stops while others continue bidding because the bid is beyond market.

In some cases the information also allows the investor to contact the delinquent Tax payer and offer to take over the property before it gets to the auction. On many occasions the tax payer sign a Quit Claim deed just to make the problem go away or accept a token cash settlement.

Finally, PLEASE, PLEASE BEWARE OF THOSE LAND AUCTIONS. MANY HAVE ENDED UP BUYING WATER LOGGED PROPERTIES.

Stay blessed

Online research, data collection and analysis involve far too many areas to mention here. This is why this type of service is exclusively needs specific.

The beauty of what I offer is that the service goes way beyond the boundaries of real or perceived limitations. In other words don't let your perceptions of what's possible and what's not limit your ability to take advantage of my services.

Stay blessed

Blessings to everyone

I am a retired data mining expert. For years I mined and compiled data from the Internet for major Foundations, Non-profit and Corporate clients.

Two years ago I started providing free research information for friends who bought properties at Tax Deed and Foreclosure Auctions in Marion, Broward and Palm Beach Counties. I was asked to help because they like many, realized that the information provided by traditional sources was at best not current.

They were simply blown away by the level of sophistication and thoroughness of my research.

I am here to offer my expertise to those who understand and accept the importance of research in purchasing delinquent properties. Be it Tax Deed or Foreclosures.