All Forum Posts by: Amia Jackson

@Charles Kennedy

Most people are too afraid of failure to even try for success. It's as if they think losing money and a bit of time is the worst possible thing that can happen to you. It's so worth it to just get out there and try to do something.   

@Ray Lai

We found the triplex on Fannie Mae Homepath. For our wholesale deal, we made a flyer with a black sharpie and copied it on yellow paper. We put them up door to door in our target area. 

Actually, if you factor in the ARV it's like we got paid to make more money. Nuts

I seriously love real estate. Where else can your effort pay off to this level?

Our triplex is a full 203k loan. Our total mortgage amount is 165k and our total out of pocket is about 9k, that's closing costs, fees, insurance, appraisals everything. The property's confirmed ARV is 230k and we stand to bring in $500 cash flow while living in the bottom unit.

The 203k is a long process, we started looking for properties in April and didn't get an offer accepted until the first week in June. It took until Mid August to close the deal. In the mean time, we wanted to keep progressing on our real estate goals so we decided to try wholesaling. We kind of putted the idea around for awhile.  Once we finally took action and advertised,  we found a house, put it under contract, and found a buyer within a two week period!

The wholesale deal came with quite a few headaches. The owners had quite some unsavory people living with them and they were hesitant to leave. The house was also facing sheriff's sale and we had to file some court documents and get it postponed.  On the plus side, the seller was super motivated and wanted to leave ASAP. In the end, it took about a month to get everyone out and get the seller ready to vacate and close. We made 10k off the deal before expenses. 

I should add that both of the deals we made were very frustrating. Some people advised us to walk away and find something easier.  But we kept trodding along tackling each problem as it came. None of the issues were very hard to solve though. 90% just required a phone call and some paperwork.

Our next step is to buy properties and wholesale deals in a 1:1 or greater ratio.  So for every wholesale deal we make, we want to be able to buy one property. We're building a postcard campaign to market to the areas we want to hold in. We'll probably sell the "A" and buy the "B" and "C" deals. Our goal is to get a lot of good cash flowing property and then hoard money for the bubble.  

UPDATE! We close on Wednesday. 

The day after I wrote the last post the owner called me hysterically telling me her son was threatening to kill her and burn down the house. I told her to call the police. 

I came by the next day and my husband paid $150 to the rooming house for the older couple. 

Three days later she had a reaction to her medication and had to be hospitalized for three days. The same son was by her side. When she returned home everyone was gone except her nephew and his girlfriend. 

On Wednesday the buyer paid her 4k for her to surrender the property vacant with the balance due at closing. We helped her and her boyfriend pack and put them on a train to NC. 

We go to close on Wednesday. That's when we'll get our first wholesale check. 

Update: Yesterday I went over to the property and told the owners that if the people wouldn't move I would start calling DHS and have them file police reports for their missing stuff etc. I spoke in a really loud voice so I would be overheard.  She called me this morning to say they all have plans to leave by the end of the week. 

I offered to pay for a week at a rooming house for the older couple. That should cost me about $200 I told them I would only pay it to the owner of the rooming house and not directly to them. 

Fingers crossed everyone leaves on time. 

@Gail K. , That's one I haven't thought about. I'll call L&I and see what they can do. 

For the record, 

I'm so okay with fighting squatters. I just want to know what's legal or not. If it comes down to it I can wait it out. I just wanted options other than ejectment. The house is in a booming neighborhood in Philly (Brewerytown) and is a three story building that zoned as a triplex. This house is like drugs it will sell itself. I have built a great relationship with the owner and she'll be down with whatever is necessary. 

@David Dachtera ,

I called adult protective services when I found out about the older man. I just found out about the child today.  I would prefer not to call the police. But it looks like it might happen. 

@Matthew Paul Why run away? There's a lot of money in this deal for me. I already have a buyer and have the contract assigned and I get to help someone. I feel like I should at least try to make to close the deal.  

Here's the deal, I'm wholesaling a property and there are some unsavory occupants. The homeowner still lives there and desperately wants to move. About a year ago, she let an older man and his wife stay for awhile. They later moved in 5-7 additional family members. None of them are making any effort to leave. 

The house is not fit for human habitation. it dirty, hoarded, infested and the whole place needs to be gutted. There is a small child and an older disabled man living there. It terrible really. the electricity doesn't work on one floor, the kitchen is filthy and infested. It's not a good place to live. 

The owner and her boyfriend feel trapped. They really want to sell but no one is going to buy it with these people inside. they don't have a lease they don't pay rent, they steal from the owner and make the house generally unsafe. 

What are my options. I know that I can't evict them because they don't qualify as tenants. I don't want to have to go through a lengthy ejectment process. 

Can the owner change the keys and turn off the utilities? It's her house and they are in her name. She's been paying for everything.  

Will calling child protective and services and adult Protective services do any good? I don't want to have anyone family taken from them but they don't seem to worry about them living in an unclean place. 

I would say no. I know as a former very low-income person, that if you have even a little bit of money, you're going to move somewhere nicer. The people that choose to live in very low-income areas when there are other choices are most likely terrible tenants. There is a level of dysfunction that keeps people in neighborhoods like that. it usually involves a complete lack of ambition or a leaning towards illegal activity or gaming the system.

There's money to be made but you have to understand your tenants. let them paint, check employment history, expect that more people will be moving out than who moved in. know how to leverage high-income season (tax rebates!) make the house as indestructible as possible. if you get a good tenant be good to them. f