All Forum Posts by: Robert D.

my local experience : judgement amount has nothing to do with the opening bid. bank may open the auction below/at/over judgement amount. true : in many cases opening bid is around the judgement amount...but in general the key is to know what the opening bid will be so that you don't waste your time on due diligence.

 it's not the insurance company that has a problem with it. the question is : if an independent contractor gets injured ...can he claim more than just WC statutory benefits ? can he go after you for overtime, SS benefits or other nonsense just because you used insurance product designed to cover employees? I hope the answer is NO.

you need to know what you are buying on auction. there are various types of auctions. some will give you clear title  some will leave it up to you to secure title. they will give you the deed and wish you good luck. if you don't know what you are doing you might end up buying 2nd mortgage and once the 1st one forecloses week later you are out of luck...

those who can't do it .....teach. it is that simple. 

all the knowledge is here. its up to if you want somebody for 25 large to school you ...or you want spend your time diligently researching information on various forums on biggerpockets.  

 not sure there is such a thing as galvanized black pipe. you either have a steel pipe that is galvanized (coating of zinc) or steel pipe that is black (no coating of zinc) for e.g. gas

 got it. I am just concerned about the following scenario : your guy gets injured. he cannot sue you because you have WC that covers him. he submits a claim to WC. WC office asks him or you about the payroll information to make sure he is really your employee. W9 and 1099 is used for independent contractors not employees. then he files a lawsuit for you not paying his SS when he was your employee etc ...it might quickly snow ball into some big mess - I have not idea.... looks like you are covered from injury standpoint but exposed on IRS, employee/employer side

I was thinking about WC but I am just too scared to be "employer"

my line of protection is well written independent contractor agreement, W9, 1099. I dont give them any tools, I dont pay them per hour, I dont tell them when to work. here is a code to the lockbox, here is he project. the price to remodel the bathroom is say $1000, tiles, grout, glue, durrock is on the jobsite. when you do it is not my problem. it cannot take more than 3 days. all that is written in the contract. they do not have their own insurance, I have a builders risk insurance to cover myself. will that work in case he fells off the bathtub and brakes his leg ? I hope so ...can they sue me for anything else then work related injury i.e. SS, future benefits etc ...not likely

First of all, congrats that you stayed strong and did not follow some of the “advise” to solve the problem out of court. ! what a nightmare. Speaking of nightmares : ….today I will have a little chit chat with an owner who was foreclosed on. The topic is “monetary compensation” for the current owners to move out after confirmation of sale. The scenario is the following: the property was sold on auction in July 2014. I bought it and deposited the money with appointed selling officer. I have determined that the people who live on the property are the owners who were named in the foreclosure lawsuit. The confirmation of sale is set for October 30th 2014. At that time if everything goes according to the plan I should get order for possession and deed couple of days later. First mortgage was foreclosed. There are couple of credit card judgements that will be wiped out due to foreclosure deficiency ..in other words there should be no title problems …now what about the actual possession :

So far I have established a civilized relationship with owners. I told them I work for the company that bought your place. The company is willing to pay you if you move out after October 30th. I did not want to push them and offer them money to move out in e.g. 2 months. I would not be the owner of the property (no deed) prior to Oct 30th. I could possibly negotiate the deal with the owners sooner, ask an attorney to file motion to intervene (add me to the case) and set a confirmation of sale sooner at a default call roll (as opposed to contested call we have it now). I decided not to feed the system though ….I have other projects going ..let this one wait. Hey plaintiffs attorney paid the 4K in taxes. I am happy camper…

I have gone to the house couple of times, took pictures, sat at the table, had a conversation, I was sympathetic, compassionate etc..tried to do everything so that they like me and perceive me as an employee of some evil, greedy corporation. I show up in beat up car, messed up pants etc ;-) finally …I asked them ..what's your $$$ number ? They told me 4K. the house was purchased for 32K, once rehabbed (40K easily in rehab costs) I could sell for 90-100, or just sell it on MLS to an investor or handy man family for 42K..so there are exit options. so today we want to talk. They have their attorney, who ocassionally sends me some updates about the cash for keys agreement I sent them months ago. Attorney said "they wait for their client to make up the mind" I have no idea what they plan. It might be a rodeo just liked yours. So …today I will help them to make up their mind.

My plan is the following : lets agree that 4K is the number. At the confirmation of sale I expect their attorney to show up and tell the judge that possession is instanter as opposed to statutory 30 days, we meet at the house the same day and I give them cash. They move out, there is no furniture in the house, nothing that can show me ..”we aint be moving out”, I have relocking company change all the locks right after they are outside, install the alarm system, notify the local police about the agreement etc. I don’t want them to move back in over night..I would have to start everything from scratch, regular eviction, etc. yes they broke in, yes they changed the locks ..so what ..this is their house for the last 10 yrs and police would probably see that as a civil matter at best. what brake in .."we don't see any signs of brake in, we see them in our church every week..what you talking about" .. Can I sue for breach of contract, of course …;-)

My case is a little different. The house was sold on foreclosure, …eviction should be as easy as handing over order for possession to the sherrif..well ..I do not want to test crook county legal system…

Sounds like a plan ? last thing I want to do is piss them off. All it takes is open the water on the 2nd floor and let it run for a week….if it takes 6K to have them out so be it …I just make less profit..