All Forum Posts by: Dan Koch

Was the 10k tax lien because of the previous owners property taxes on a personal residence of theirs? If so, it is not too dificult to get the tax lien transferred to their new residence.

About 1 out of every 7 deals I work has either an IRS lien or some other Junior Lien holder behind the second. If you are creative you can get the deal done.

Was the original loan an FHA deal and are you going to try to attract and FHA buyer?

If so FHA is going to want the net to be 88-90% of what the BPO came in at.

They will also put stips on the sale side if it is within 90days of the first transaction.

It's like any other short sale. The contract is contengient upon lender's approval. If you stick to your guns in negotiations you will have 30 days after the Payoff Demand Approval Letter is issued to close on the property.

In Wisconsin you can start to market the property before you take title and become owner of record.

Depending on how your paperwork is set up on your end you are either going to have to go into this with an option contract (which the lender will shoot down 99% of the time) or go in on a State Realtor's contract.

On the other end you can get a limeted power of attorney from the homeowner (borrower) that allows you to remarket the property before you take title and become owner of record. So you can start marketing for your cash buyer before you take title of the house.

Make sure you file your notice of contract so you are protected in this.

Do your own market research on the property. Determine the range that the BPO is going to fall into. You can do this by comparing this property with other REO's and Short Sales in the area.

Once you find out where the low end of the BPO is going to be, then depending on who the lender is they will discount that number anywhere from 5-15% and that will be their rock bottom number.

The battle lies in the fact that the lender will want to determine the value of the property based off of other "RETAIL" sales in the area. As an investors we know that this is not a retail situation, but a distressed situation and this needs to be accounted for in the price.

Without having any control of the negotiations it will be difficult for you to get the price your looking for. Not impossible, but difficult.

Hope this helps.

Dan

There are two options that I have used in the past with people. 1 is either the self-directed ira or 2) is the Solo 401k.

The Solo 401k has some weird rules and stipulations and from prior experience the self-directed IRA is a much easier option.

When you use a firm such as Equity Trust or others out there, they typically handle all of the heavy lifting for you as far as getting all the Trustee's "ducks in a row".

Something similar as in: the bank that has been taken over by the FDIC will have their REO's liquidated in auction style format just like all of the NPN and other assets that are liquidated?

Jon,

Great point! There are so many folks that enter into retirement with nothing but a paid off house. A lot of them have lived in that home for 30+ years and have put a lot of blood, sweat, and hours at a 9-5 into that house if you know what I mean.

If the reverse mortagage was not an option then these folks would end up living off of the little amount of money that SS pays and making sacrifices because they want to stay in the house that they have worked their whole lives to pay off.

The reverse mortgage lets Seniors live out their retirement years in the house that they have known and loved along with providing them enough cash to make those years great!

I def don't think it is a good option for everyone, but it is a great option for those who don't have a large retirement fund and want to stay in their home!

Depending on the reason for low occupancy @ a 7.5% cap and 71% occupancy there is a big upside for capital improvements and having a great deal.

If poor management is the reason for low occupancy then @ 1.6mil I would say it is a good deal.

If it needs a lot of Capital improvements and $$$ out of pocket to bring the occupancy rate back to a respectable/stable percentage 90-95%, then you are going to want the owner to carry more.

I am willing to look at any commercial deal that you would like to partner on. I have a lot of pieces in place and have been successful on several commercial short sales.

I'm a wholesaler too and have never made anyone sign a NDA. He just doesn't have the property under contract if he is making you sign that. I would just make sure that another wholesaler doesn't have it under contract and this guy is trying to act as a buyers agent by brining you into the deal.

I know there are always a few bad apples like this floating around!

Hope the deal works out!