All Forum Posts by: Chad Shultz

Ronnie,

Yes, there are a few title companies who can help in the Volusia area. I don't know of a company in Volusia specifically, but RTR is okay, Southeast Professional Title, and Equity Title, LLC are all very investor friendly and can close properties in Volusia.

Nicholas - As an active local, hands-on, investor and licensed Realtor in the Daytona area, here's my take:  People generally watch too much television.  With so many home related shows out there, it is like a modern day gold rush of sorts.  The other posters have given some excellent points, like info about the State of FL during and post COVID, etc.  These are all contributing factors, but overall it is more just a new type of "gold fever".  Many so called "investors", especially from out of the area, see opportunities being had and they don't want to miss out.  Subsequently, many will jump in the deep end of the pool with their fingers crossed, hoping they float and things turn out profitable.  This could help explain the recent surge of properties in your inbox.  Those "investors" who pulled the trigger without aiming, or those who were bamboozled by dishonest "wholesalers" are now trying to get back whatever they can before the market slows to the point they may have a vacant property.

If you take the time to understand a property and the potential, making sure to buy it right, you should set yourself up for success regardless of what your end game is.  Don't buy a property because you need a property.  Buy one because it is a good deal for you.

I agree with Paul about the concrete block vs. wood example.  I purchase both, usually as flips, but won't generally purchase anything wood in a flood zone.  On the topic of flood zones, they bring more risk, but can also bring more return.  If you are planning to hold as a LTR, a flood zone will generally give you a better opportunity to buy the same house for less money, raising your monthly net.  It may require flood insurance, but the renter pays that for you.  There are plenty of flood zone areas that are lower risk zones, allowing you to use calculated risk to your advantage.

Feel free to message or connect.  If you are ever in the area, I would be happy to show you some of my personal projects and answer questions, so you can get a better feel for the area through the experience(s) of an actual local investor.

Cheers.

Thank you for the info @Rick H. I figured each state would be different and Calif is always on it's own playing field.

@Joe S. I did not realize BP cut off the rest of my back story.  I have tried to update the post, but BP does not allow changes to the original, so I am not certain how it will display.  If you want to read the whole story easily, I also posted it in my profile deals, so you can review it there.  Just click on my profile and look for the same house pic to find it easily.  I think it is second or third from the top.

Investment Info:

Single-family residence other investment.

** Foreclosure Overage Recovery ** - This one was a bit different.

What made you interested in investing in this type of deal?

I had met these people when they were going through Probate and wanted to sell the property. The big problem for them was they had a reverse mortgage on the property, which had a balance above what the property was worth to an investor. We tried to help them sell, but it would not be. About a year or more later, they went through a foreclosure by their HOA. An uneducated person bought the property at the HOA foreclosure for about $180k+. After paying off the HOA lien, there was $171k left w

How did you find this deal and how did you negotiate it?

I had developed a relationship with the property owners during an initial attempt at helping them with probate.

How did you finance this deal?

No money out of pocket and no money up front.

Investment Info:

Single-family residence other investment.

** Foreclosure Overage Recovery ** - This one was a bit different. I had met these people when they were going through Probate and wanted to sell the property. The big problem for them was they had a reverse mortgage on the property, which had a balance above what the property was worth to an investor. We tried to help them sell, but it would not be. About a year or more later, they went through a foreclosure by their HOA. An uneducated person bought the property at the HOA foreclosure for about $180k+. After paying off the HOA lien, there was $171k left which was available for the probate family. The first mortgage had never foreclosed and the first mortgage holder did not go after the overage from the HOA foreclosure. I helped these folks recover the $170k+ from the court. The buyer of the HOA lien had to fight against the first position mortgage holder who started a foreclosure after they bought the HOA lien. I was able to make about $19k as a fee for the recovery. The person who bought the HOA lien did a $100K+- renovation and had to bring money to the closing table because of the first position mortgage. My clients were very happy and the buyer... no so much. This should tell folks to do their research before buying foreclosures at auction. You need to know what you are bidding on.

How did you find this deal and how did you negotiate it?

I had developed a relationship with the property owners during an initial attempt at helping them with probate.

How did you finance this deal?

No money out of pocket and no money up front.

Alan, were you replying to me?  Your response was not quite clear.

Hello Alan,

I usually keep watch on Eastern Volusia area as that's where I prefer to do my projects. Sometimes I get several at once that come available, so I hand one or two off, depending on how busy I am. I currently have one available in a very desirable Ormond Beach neighborhood. It is a 3/2/2 about 1533 sq/ft. ARV above $400. If something like this might interest you, let me know and I can share more info.

There really is much more to your question than just a simple answer. There are so many other variables involved. Nobody can really give you a solid, definite answer without more info from you. I'm in Florida and my preferred way to do properties is in a land trust. Much better protection, easy formation, and they evaporate after the transaction is over. Your state may, or may not, allow them. Your best approach is talk with an investor friendly RE attorney, or attend your local REIA meeting and find out what the common practice is there.

George,

I would say you should start by getting to know people in your local REIA. You won't know what is best for you, until you know what you might like to do in real estate. Flipping, wholesale, renting, etc., are all different animals and different paths. You cannot just start everything "Willy Billy" and be successful. Find something you like and start there. After you make progress, move into other areas, until you have a nice portfolio of things going on. Remember: "He who chases too many rabbits at the same time, catches none."

 Katherine:  Welcome to the real estate investment game.  Yes, I said, "game."  Basically, it is one large game of "cat and mouse" that we all play on a daily basis.  Sellers want a certain amount and buyers want to pay less.  Each enters into a type of dance until a price is agreed on and the sale concludes.  However, as an investor, you should not get involved in this dance or game with sellers.  You should pay what you think the property is worth, not worrying about what the seller paid or what they may or may not make.  Stick to your formulas and your comfort zone and make offers.  Put the choice in the seller's hands.  After all, every offer you DON'T make will certainly not be accepted.  At least if you make the offer, you put the choice in the seller's hands.  Every seller will get to a point of motivation.  Whether that is price, timing or some other reason, they will all hit that point.  You want your offer sitting there and waiting for when they get to that point.  A you may write a lot of offers, but eventually, your timing will be right with the right seller and you will be successful.  Your job, as an investor, is to purchase properties at a price that is right for you and nobody else.