All Forum Posts by: Adrian G.

90% UNUSABLE, Good thing you did your research.

This is very true, well said Michael.

I would do exactly what Michael says, it could be more then effective.

Cash doesnt always have to be an issue for this to work. Im not saying this is what I need to do but (big picture) if there were more contractors willing to share the risk with us the flipping game would be very different today.

Thats it, Im coming to a town near you Bryan haha.

Wow are you for real? How long did you live there for?

Bryan & Justin are both correct, DO NOT jump in blind. I did that and luckily the market covered my *** because if I jumped in now I would be singing a very different song. Read all the books you can, take advantage of all the free advice you can, and dont be afraid to ask for help. Dont forget you also need to have a team ready, agents, financing/banker, savings, back up plan, back up plan #2, etc.

I like the way you think Steven.

As you are probably aware, each municipality has different guidelines. Here in Maryland, for example, tax liens are not converted into tax deeds. Instead, the tax lien holder must initiate the foreclosure of rights of redemption of the property. This is an extensive procedure completed by attorneys. If you have any interest, you may read about it here: http://www.montgomerycountymd.gov/apps/taxliensale/ - scroll down to "ACTIONS TO FORECLOSE".
Makes sense?

Umm no it doesn't make sense, can you please show me where it says "This is an extensive procedure completed by attorneys." ???

What it does say is "The holder of a certificate of sale may at any time after the expiration of six months from the date of sale, file a complaint in the Circuit Court to foreclose all rights of redemption of the property to which such certificate relates. These are papers you can file on your own for a fee (usually a small fee but depends) or even online. Majority of the counties do it online and YOU never step foot in a court room or have to hire a lawyer.

So back to the question, why are you complicating it by getting an attorney? Are you investing that much in to a deal that you need an attorney to walk you through it? Im not trying to give you a hard time but many of us here including myself have done tax liens in many different states and know how it works. If you wanna spend the money to get an attorney go for it, knock yourself out, All im trying to say is that its not really necessary.

You know what...I will do that. Good idea! I should have done that in the first place.

Ahh OK, thanks for the response. I like how the bank would give loans for that tax credit haha. Im assuming the same tax credit applies to units that are for sale and not for rent, is that correct?

Well I did google it, but I dont need the definition of it and I didnt find any real world answers regarding it. Im wondering if someone here could tell me.

Cheryl,
You dont think a contractor who will do the work without getting paid upfront is a good deal? Do you know how much contractor costs are for a rehab? What if the REO doesnt sell right away, he wont get paid. If people are doing 1-2 deals a year and you have the means to sit while your money is tied up in this 1 project then yeah dont do it, but if your a person who does multiple houses at a time those expenses/holding costs can add up like crazy.

Its not about the workers, coming up with cash, or "finding" the deal. Its about making a deal while minimizing your risk as much as possible and in my opinion using the least amount of your own cash as possible. A contractor who is willing invest his time and money with your project deserves to be compensated for it. (If the deal is suitable).