Advice on Buying and Flipping Bank Owned Properties

[Ken Webber]

Hey everyone, I've invested in 3 rental properties, and the investments have been great! 

However, I've been approached by a GC that I trust, who wants to partner with me on flipping properties. 

This will allow me to continue to work my W-2, while he is the GC, we have a JV put in place for profits and expenses.

As I research which properties to target, I see bank owned properties as options. However, other than buying the property AS IS, what other concerns should I be aware of and or factor in targeting these properties? Old Property taxes would be an issue right? 

[AJ Exner]

Hey Ken,

Yeah, the two big things I see with bank owned are Quiet Title issues and closing timelines. 

Sometimes the bank owned stuff requires that you have the financing up front which hinders options on the financing side of things. So I would check with that first and see if you should look into some 'Delayed Financing' options.

Quiet title being a big one. If there are any mechanic's liens or tax liens, then obviously that is going to make it really tricky to do anything with. In that sense, its a bit more high-risk, high-reward.

Plenty of opportunities though! Happy to chat about financing strategies if you decide to jump in that direction.

Good luck!