All Forum Posts by: Bob Floss II

@Account Closed If you are still looking for referrals, please reach out.

@Elizabeth Calleja If the judge has concern over the value of the property, they will order a third party appraiser to submit a valuation to the court. In my experience, as long as there is enough money in the estate to pay the bills, the judge and attorneys don't concern themselves to much with the sale price of the property. When a probate attorney works with a cash buyer, their incentive is to liquidate the estate, get cash in the account, close out the estate, and get paid as fast as possible. 

Keep in mind the obvious hurdle in these situations is getting the heirs of the estate to sign off. Some families don't care and just want the property sold and estate closed so they don't have to deal with it or revisit old wounds. It only takes one heir that thinks grandma's house is worth a million dollars because they have happy memories and won't let go. If the attorney rejects your proposal, it may not be the attorney, but the heirs that are preventing you from finding a good deal. Be polite and try to build a relationship with the attorney so they remember you when that perfect scenario pops up.

@Demjan Van Der Kach I’m sure you’ve already heard this, but you need to get your own attorney. Find someone local that specializes in real estate and they should know how to put together a loan package to protect your money.

CoC return is something I look at when projecting how to structure a deal and giving investors options on how to use their cash. However, for me at least, CAP will always be king.

@Peter Betlejewski I'll be available after 2:00 today if you want to give me a call.

@Kellen Driscoll Call a few local attorneys and ask how much they charge. It may not end up costing as much as you think and it can save you pain later. If you are 50/50 in everything, how will you handle if there is a disagreement?

@Michael Clay You should absolutely make the purchaser go through a credit and background check before you lend money. Contact a local attorney that does real estate and have them draft a loan package on your behalf. You need to have a Note and Mortgage signed at closing and have the Mortgage recorded on title by the title company. 

In this scenario, I would want to see some type of verification from the buyer that they have funds to make the down payment and execute the rehab. Request a scope of work with expected expenses for each line item and find out how the purchaser plans to fund the work. Couldn't hurt to get a cma from a local agent on expected value of the completed project. 

It doesn't happen often, but I've seen investors purchaser a property with no rehab plan or funds set aside and the property ends up sitting for several years.

@Jorge Ibarra Assignment of contracts is taught in law school. If they don’t understand, meet with a different attorney that only does real estate. It’s a pretty basic concept. 

@Sebastian E. It can be done but only under certain circumstances. Auction requires you to take the property as is with no guarantees of possession and you cannot access the property. That makes doing an appraisal for a conventional or fha loan almost impossible. If you use a rehab lender and they are fine with a drive by appraisal, you can maybe get it done. 

@Shachar Hess Well I'm obviously going to be biased but I love Chicago and the surrounding suburbs. It's such a large city you are always going to be able to find an opportunity. 

There are many ways to create a plan or partnership to start flipping houses, it really depends upon you and your goals. Have an idea of what role you want to play in the process.