All Forum Posts by: Christina R.

Congrats!!!

Kevin,

I am very new to tax lien investing, buying one over-the-counter lien after the main tax sale in Baltimore this past May. I know tax lien/deed situations vary by county/city/state. If I proceed with the foreclosure - which is the point at which I am now and have to decide what to do - it could be 1 to 2 years before I get the house if the owner does not redeem (which could happen right up to the last minute and possibly 30 days past judgment). The interest rate where I am is 18%, I believe. It takes patience, that is for sure, but if you strategize and have a great deal of luck, I think, you can pick up some absolute bargains.

There are several people on BP that are very notable on tax liens. Do some searches and you will see a lot of information.

Thanks to all in the BP nation, I do feel much better today. It's amazing what a good night's sleep can do. I am going to keep on moving forward. Thank you for all the wise, sage advice. That's why I love BP. This website is awesome!

@Ned - the same lending source said what you and I looked at Sunday would be supported by comps to be funded. So count me in for that. We can discuss details later.

In the meantime, my immediate next step is to increase sources of funding and pick everyone's brain about creative financing, private lending, hml, you name it. Talking to people so I have my ducks in a row for the next one.

Welcome Jay - there are good meetups in Arbutus and Columbia as well as BREIA in Towson and MAREIA in Owings Mills where you can meet fellow investors. The Columbia meetup is next Weds off of 175 and it's free and very informative. I don't know how to post the link but @Ned Carey does or just go to meetup.com and search for the bwimeetup

Yes, as my husband point out walking out the door this morning that we have learned so much in just the last 3 weeks. I know the sun will come up tomorrow it just kills me that this great opportunity is now gone. I had no time to scramble today to get lending. I thought I had that lined up but I didn't and it's my own fault.

If anyone has suggestions for private lenders, HML lenders that lend in Baltimore City, I'm all ears. Same for small banks, etc. I've tried our credit union (NFCU), forget our checking account bank (Bank of America). Anyone have success with Sandy Spring Bank?

Since I didn't sleep much at all last night with this on muy mind, I think after a good night's collapse tonight I'll feel better tomorrow.

Daniel,

I live in MD. What city is the property in? that will influence your rehab costs to some extent. Good luck!

@Shawn Holsapple

-Shawn, yes this was to be a buy and hold - with the intent to refi out as soon as possible into a conventional. The lender is saying that based on the comps (see my post to Nicole above), I wouldn't be able to refi out of the hml. I'm not sophisticated enough in real estate yet to know if that is really true or if because I'm an unknown quantity to this lender they are just not going to risk it.

@Nicole A. - This was a rowhome in 21223. 2 beds, 1 bath The purchase was 21K, the rehab would have been 15-20K. Now, it very well could have been rehabbed for less (structurals and systems were all new or in very good shape - I had a full blown inspection) but I went with a recommendation of a good, reputable contractor that costs more but is excellent quality (which to me means less expense over time - I could be wrong but that's my current thinking). The other thing is that there would be some level of lead abatement but we didn't get to the lead test - definitely present in moldings, around staircase, trim, etc.

The section 8 rent will be at least 900 if not 1000 minimum for a 2 bedroom with den, which is how I'd have to market it for section 8 with its layout. There were 3 sold comps within .5 miles from NOVEMBER for 55-75K. However, the hml lender determined from sDAT what the sold prices were for that exact block (and yes, now I know how to do that too and should be doing it) and determined that the ARV for this lending group would be based on those sold prices . . 7500 to 22K in the last 3 years.

This block has one board up. Everything else is occupied - or at the very least you'd never know it was empty. Well maintained.

Typing this makes me frustrated all over again. I take total responsibility for blowing this deal. I needed to do more upfront - negotiate price harder, get more quotes for repairs, investigate more lending sources. This is not an excuse; it's hard when it's your first deal and you are trying to put all you are learning and networking into action to pull the trigger.

Ok BP Nation, I need some mental boosting today. After 6 months of reading BP, going to meetups and REIAs, finding a super-sharp investor-friendly realtor, investigating money sources, etc., I made an offer on an MLS listed property that needs some rehabbing and ended up getting it under contract. This is in Baltimore City in an area with investor activity for buy-n-holds. I thought I had the MLS sold comps to support the amount requested but came back from Thanksgiving week in Florida to discover that my lending source was using specific block data that was on the opposite spectrum of the comps within a 1/2 mile radius of the target property.

I did have an inspection contingency in the deal as my realtor recommended it with this being my first dip into the investing pond. Termite damage is extensive as well and long story short . . .I'm going to be backing out of this deal.

This property would have exceeded the 2% rule. The issue is that we just didn't have quite enough to come out of pocket and feel comfortable. Even if I went to renegotiate the price the HML still wouldn't probably wouldn't have funded me. I know logically that this is probably the best thing as I feel this lender is reputable and honest. My thought is there are deals out there and if this was meant to be, it would have . .. to keep plugging along and saving cash . . .

Emotionally I'm just upset and want some reassurance that this is not the end of my real estate world (I know it's not, just boo-hooing today) . . .

AND - please advise me on things to do the next time around that I may not have thought of this time.

Thanks for your support,

Christina