Opportunity for a quick flip and how to negotiate deal

3 Replies

My partner and I are from Las Vegas, Nv and we just got our first rehab property. While doing that rehab, I ran Into the neighbor (who Is a renter) and they saId they were leaving because the owner of the house is behind on the mortgage and has 3 liens, whIch Is true. (mortgage, water, hoa. I called the owner and “yes” he’s selling it and hasn’t paid the liens. With that information and knowing what the house is worth, Arv: 165k, homeowner owes approx: 116k with all three liens. How do you go about closing this deal other than the traditional way and what paperwork is needed. Any help would be appreciated. Thanks

You said the after repair value is $165k, how much are the repairs? 

Sounds a little fishy. Why would the renter know that the landlord had 3 liens and was behind on his mortgage? Why would the water department have a lien on the property? The renter should be paying it. They still wouldn’t have to move. Unless they are month to month, nobody can kick the renters out. Any “real” lease must be honored. 

if the repairs are sub $10k you should be able to get a regular mortgage. Make sure you get title insurance if there are “3” liens on it so the 4th one doesn’t bite you. Anything sub $200k should be a easy/tiny house unless it’s in a real shady neighborhood. I haven’t seen a decent 3/2 under $200k in quite awhile. You can’t go too wrong for $115k barring something obvious the title company or an inspector should catch. 

If you’re already doing rehabs in the neighborhood you should be golden. 

@Brian Sachs

Awesome, sometimes it’s super hard to find a deal and then walks up to you. GJ. 

Be careful with the sewer lien if you’re in North Las Vegas, that is actually water, sewer, and garbage. So it’s going up every day. And it’s a lien from the city. Tenant either didn’t pay it or bad landlord practice of including it in the rent.  If it’s Las Vegas proper ignore the warning and title company should be able to sort it out.