All Forum Posts by: Yi Lin

Hi Cynthia,

Currently, all my properties are single family and we also self-manage but lately what we are finding out that it is getting difficult to scale with just SFH and we are working more, almost like a second job. Therefore, we are considering getting into multi-family. I think the answer to your question really rest with what you want to do. Also, even if you don't go into multi-family now, you might find youself one day that it is needed to grow faster than current rate.

Thank you so much.  Maybe I can use this as a way to stand out among the crowd!  I just hope that they haven't got so used to "Licensed lying" that they start to think they are really saving thousands of dollars.

Dear BP family.

I'm thinking about doing direct mail marketing.  I got like a stack of them from other investors and have been studying their messages.  Some are obviously doing a 1031 exchange.  What is interesting is that they all have three things in commons.  They offer seller no fee, no commissions, and no closing cost.  

1.  How are they able to offer these features?  Do they just buy at a such deep discount that they could offer these features?

2.  What is the "fee" that they are referring to?

3.  Even if they are realtors, wouldn't they have to share their commission with the broker?  

4.  How am I suppose to compete on their level when I'm not a realtor?

5.  What is the reasons behind offering these features?

Thank you in advance for your help!

Thank you all for the reply.  @Ron, I like how you answer my question about redemption rights.  I definitely need more education on foreclosure and glad there is biggerpockets and members like you!  Too bad you are in Paradise, otherwise I would buy you a beer or whatever you like!

Hello BP Family,

I have been doing research on how to properly buy trustee sales in Midlothian VA. There are great pieces of information but i'm struggling to find a location where all risk associated with their mitigation strategy. With that said, I will listed all the risks associated with buying trustee sales that I gathered.

1. Liens on the property.

2. Occupancy permit yanked or condemned.

3. Buying a 2nd position mortgage.

4. Evict occupant? or maybe even tenants?

5. Limited ability to inspect before purchase.

6. Some states have redemption rights.

7. Close within 15 days or forfeit deposit.

I'm not trying to over analyzed or over thinking trustee sale but the terms requires cash and close within 15 days so I'm just trying to understand what I'm getting myself into.  

1. This one is fairly easy?  Just get a title company to do a title search?  My issue with this is after spending the money to do the title search but when i go to the auction that house is no longer available, didn't I just waste my money or is this just part of risk of doing business?  Any way to mitigate this?

2. If the property are single family, then will this still be an issue?  What's the reason for occupancy permit to be yanked or condemned?  How do I find the code enforcement people?

3. How do I know if I'm bidding on a 2nd position mortgage or not?  I understanding sometime it is no big deal to bid on 2nd position mortgage if 1st position mortgage amount is small.

4. Is this any different than evicting someone who don't pay rent?

5. Any creative ways of seeing the condition of the inside other than just looking from the outside windows and doors?

6. Does this mean after I bid and won the house, the owner could still get the house back??  How do I find out if my state have redemption rights?

7. Never done a cash purchase before.  How soon can closing happen if it is a cash purchase?  Not worry about this one as I can check with my settlement company.

Sorry for all the questions but I figure it is better to ask all in one go than multiple questions.  

Thank you in advance for your time and for sharing!

Hi Aaron,

Thank you for your reply. No, not recouping title. The way I understand trustee sales is that bank has appointed an attorney as the trustee to sell the foreclosure properties for the banks. After doing some researching here, there seems to be 3 major things to watch out for when buying trustee sales. They are: liens on the property, not seeing the inside condition of the property, and paying cash due to fast closing. I'm asking for a recommendation of title companies in Midlothian, VA or Richmond VA for helping me with understanding liens on the property and close the property If I do decide to buy trustee sale properties in my county.

Thank you again, Yi.

Dear BP Family.

Which title companies would you recommend for purchasing distressed properties such as trustee sale?

Thank you for your time,

Yi

In the beginning I was managing the properties and I quickly realized that tenant would try to get away with things if you befriend them.  Now, there is another school of thought that argue that good things came from tenants knowing the owner.  It probably is the case depending on the location, type of tenant, and type of your own personality.  Now that I have tried both, I like maintaining a business relationship with them but no befriending them.  It just didn't work for me.  I think it is worth to try to both, assuming you only have yearly lease, you only have to put up with them for a year.  

I would let them do it and do what you mention.  Also look into material selection, as not to install something that would make the next tenant not want to rent there.  You are lucky to have someone who improves the properties!

I know this is replying to an old post but but did this meeting become official where I can attend?