REIA-NCI - Buying HUD Homes & Landlord Horror Stories

2 Replies

  • 10/26/17 06:30PM
  • South Bend, IN
  • Free

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The Real Estate Investors' Association-North Central Indiana (www.reia-nci.org) gears its education and community building efforts toward real estate investors in St. Joseph County, Indiana with a focus on South Bend, Mishawaka and Granger.

For our October meeting, we will host a "Landlord Horror Stories" night. There will be prizes for the most harrowing narrations of life in the spooky lane as a landlord.

We will also have a short presentation by Julie Swinehart who is a HUD Registered Listing Agent (i.e. she lists homes on behalf of the Department of Housing and Urban Development) on how to buy HUD homes. She will address the new changes that have taken effect within HUD due to issues with abuses of the system by "overly creative" buyers.

The meeting is free and open to the public and will be held on Thursday, October 26th, 2017 at The Sanctuary at St. Paul's, 3602 S. Ironwood Dr, South Bend, IN 46614 from 6:30 p.m. to 9:00 p.m. EST. 

Non-members can attend one meeting for free and if they choose to remain a non-member, they can attend additional meetings for $10.00 at the door. An annual membership to the REIA is $50.00.

Please call 574-742-2456 with any questions or visit our website at: http://www.reia-nci.org

Hi @Anthony M.

I just went on line and joined the REIA. While I can't attend in person, I do want to share a scary Real Estate Investment story. Sometimes bad things happen to good people.

Two years ago I found a woman on Bigger Pockets that had just put a property under contract. She couldn't close and needed capital. She and her son had a remediation business and were contractors, so they could do the work. I had an investor that lent the cash. A partnership was born and she and I split the profit on the fix and flip 50/50. 

I went and found two other properties for fix and flips and a couple for buy and holds. I borrowed the funds from investors here in Ottawa and my partner was to conduct the rehabs. Little did I know, but her son developed a weakness for meth and drained my account to feed his habit. Now I had four properties, no money and investors asking questions.

In order to pay back the investors, I exhausted my HLOC. They didn't lend me money expecting that I would give them pennies on the dollar, so I paid them back every cent. I used the profits from 1 fix and flip to fund the other projects and slowly crawled out from under the mess. 

I discovered that whatever doesn't kill you, makes you stronger. Now I have processes in place to ensure that future projects are properly managed and issues identified early.  

Just a reminder about the REIA meeting tonight for anyone interested in attending.

@Stephen Fryer Thanks for sharing your story. Hopefully the meth was being "processed" for consumption off-site.....away from the fix and flips.

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