All Forum Posts by: Bob Floss II

@Peter Shafik You will probably turn more attorneys away trying to offer something. We don't want the risk of taking payment for something that could be illegal or improper. If you want to get in good with an attorney you need to meet with them and let them know you have cash to close if they have sellers that are in need to sell. Most probate attorneys just want to get the properties sold quick so they can get the assets liquidated. They want to know you are legit and can close if they call you. The other way to get their attention is to throw them some business. 

@Chetan Raj Paragon Property Management. 

@Daniel Purcell You can still close, the title company should have someone that can explain the process to you. They need to get a court order signed off by the bankruptcy judge to approve the sale of the property. It happens all the time. I've never had an issue with it, but it does take time to get the motion noticed up and in front of the judge. Depending on where they are in the bankruptcy process, it could take a few weeks or a month. Also, if the agent disclosed to the title company, it should have been reflected in the title commitment. 

The money you save not hiring a lawyer in the beginning will cost you 10x more when everything goes wrong. 

@Lane Babb It's far more time consuming than you think. 

@Kris Easters If you use a hard money lender, they'll need an appraisal done. Some auction properties don't allow interior inspection. If you can gain access, a good hard money lender can close in 14 days. Otherwise, pitch the property to friends and family and see if anyone will go in with you. 

@Lane Babb Direct mail that directs the person to call a phone number, leading them to a pipeline you manage. The leads are easy, it's the follow up that's hard. 

@Dimitry Peters I love using CAP rate for determining the value and negotiating on a property. First, it's important to know a good CAP for the property area. An 8 CAP might look good until you realize the neighborhood has rent collection problems and most investors won't go under a 10 CAP. You might also look past a 6 CAP as not profitable enough, but the neighborhood and building may very easy to manage and there's potential to increase rent or decrease expenses. Second, once you know the CAP rate you want to hit, pour over the income and expense sheets. I can't tell you how many times we initiate attorney review and the rent rolls and/or expenses were a figment of their imagination. When we get actual numbers, we go back and reflect that in the CAP and sometimes have to renegotiate deals.

@Lisa Eckman A lot depends upon the relationship between the investor, lender, and attorney. If it's a first time deal, I want to just represent the lender and present their loan package protecting their investment. However, if I'm the closing attorney for the investor, I may prepare the loan package for the lender. I've done this many times before so the lenders typically trust me that I'm doing it right. The advice above was correct, I typically prepare the loan package on behalf of the lender, review title and request a loan policy, and charge my attorneys fees on the settlement statement.

@Chris Echols The closer you can be to University of Chicago or Lake Michigan, the better. I like Kenwood, Hyde Park, Washington Park, South Shore, Jackson Park, and Bronzeville. There are different CAP's depending upon the pocket you are looking. Hyde Park and UofC campus will be much more expensive. Start networking with commercial agents.