All Forum Posts by: Christian Lincoln

@Ned Carey The Tax Certificate he sent me a copy of has his name on in stating the City is selling the property to him for cost of back taxes two years ago.  So I believe the original owner had liens, then it went to foreclosure and then auction and current seller bought it and is offering it to me.

The property was sold at auction by city for cost of the back taxes due to the current seller, two years ago, ( a tax/forclosure guy).  He says he doesn't have time for it, dumping it out of his portfolio, willing to sell it for his cut (3,500) acting as a wholesaler i guess, and for the cost of the back taxes owed the city, now at 11,000 dollars.  He says it will require an Article 15 proceeding but this isn't a big deal, he does it it all the time.

My attorney and title company don't seem to understand this or don't like this or don't seem inspired to want to move forward with something like this (title company says we can't really insure this without an action to clear title), I think mostly because they seem unfamiliar with it.  I've ordered the title search anyway. Can someone walk me through the pitfalls of this, or maybe how something like this happens?  Can I still make an offer contingent of clear title and just pay the taxes with city (if this is the only obstacle on title as he says) and then proceed to close?  

Title company says this:  "Being that this is a tax sale property I will most likely not be able to insure without an action to clear title. I presume you will be taking a deed from the holder of the tax sale certificate? If you could get a deed from the person who lost the property that may make it insurable also."

@Mike Flowers,  I'm just the buyer.  A wholesaler/tax foreclosure specialist is selling to me for the owner, so it's being deeded or assigned to him I guess.  The house is only 3,500 bucks plus about 11,000 in tax debt, so I assume he only wants to make the 3,500.  I'm paying the tax debt.  But my Title company, so far, is dragging their feet.  Maybe I just need a simple way of explaining to my title company so they realize it may be a double closing but I'm not "flipping" the house necessarily, i'm going to keep in and fix it up, etc.

I'm not a wholesaler (but an investor), but my title insurance company doesn't like insuring anything from wholesalers. I don't know a way around this. New York State has a law about discouraging equity grabs from homeowners, so they stay away. Anybody have thoughts on this? I don't want to NOT USE wholesalers.  Is there a way to smooth the process, especially since in this case its an all cash deal?

thank you for your thoughts gang!

I'm not a wholesaler (but an investor), but my title insurance company doesn't like insuring anything from wholesalers.  I don't know a way around this.  New York State has a law about discouraging equity grabs from homeowners, so they stay away.  Anybody have thoughts on this?  I don't want to NOT USE wholesalers. 

Need a conversation with a CPA about LLC, S-Corp, depreciation, partnership agreements, etc. Anybody know an expert for this conversation.

Thank you!!!

Can anyone suggest someone to help set up my 2 or 3 properties into strategic tax structures?  My current accountant isn't a real estate expert.  Some good with partnership agreements, Inc. and management company etc?  thank you very much.

Okay. Whew. Bank is definitely easier. Thanks @Jon Holdman 

Looking for my first HML. I have two investment properties already (trad. financing) and I'm a contractor. Have cash, have a decent credit score. I could almost - but not quite - do a cash deal. Not ready to hit up wealthier investor friends until the 2nd or 3rd one. And I can nearly, but not quite, go to a traditional bank, if I hadn't done quite well in my last business and taken two years off - which ruined ability to qualify until next tax return.

The few HMLenders I've spoken with want all of the following. (Would you  - OR DO YOU share all of this info?). I'm fine with most of it, but...

-They want an LLC, very few seem okay with DBA.

-All bank statements, including daily transactions, every page for 5 months. acct numbers on each account, etc., provide full and complete itemized bank statements for the past 5 months.

-Full loan application of course: Assets, Liabilities, Net worth, Full S.O.W.,

-Titles and Deeds on each property I own

-bio

-references

-Licences, (even though not required in upstate NY) and all proof of insurance.

-Operating Agreements, Articles of organization for your business

-Copies of identification

-A portfolio of before and after renovations

-Pay for their appraisal and credit check (5 or 600 dollars)

-List of subs AND copies of their insurance...

I could keep going...At what point do you start to wonder what is going on, and if all of it is necessary.? Is this safe, when you are trying to develop a relationship and learn about them as well? Trust goes both ways. Not all these HML's exactly on the radar. Half the time they seem to be just two people with a lot of money. Is this typical for a first HML? I am only asking for 80k on an amazing flip I just had an accepted offer on (a farm house in the Hudson Valley, commuting distance to NYC for only 100k (ARV from certified assessor 190k).

Thank you,

Elizabeth, That is fantastic advice.  Wow. I think that's the way to go.