All Forum Posts by: Chinmay J.

Chinmay J. has started 51 posts and replied 1181 times.

Originally posted by @Mark Rosario:

My situation is pretty simple.

I'm currently 39 years old. I'm single with no kids or girlfriend. I've been busting my butt over the past several years and now have my home paid off. I have 3 bedrooms rented out and collect $1700 a month. My total expenses including HOA, Prop taxes, Home insurance, Car insurance, Gas, food, eating out.. EVERYTHING come out to $1100/month. This leaves me with a cash surplus of $600 every month. I also have $50k saved up in the bank along with another $34k or so in an IRA. A lot of the people close to me say I should keep working to save even more money to build a better retirement but I'm a man that likes less. A perfect day for me is waking up, watching TV on the couch all day and going back to sleep? As far as health, I'm healthy enough and plan to seek health care in a country where it is cheap when the time comes or even getting citizenship in another country and getting health care completely free? Can I retire? It seems pretty straight forward but since I work so much, there's hardly any time to even think. Thanks in advance.

Boy !! You have mediocre dreams.. But hey... mediocrity is your goal, who can stop you from achieving it. I think yes, you should retire. Perhaps your job can be used by someone who truly wants more, as a stepping stone to a better job and better career.

I think people close to you are bats**t crazy.

0 Votes

Originally posted by @Brian Pendergraft:

I don't buy tax liens myself but I do help my clients foreclose and can explain the legal process. So any expenses you incur after about 4 months from the date of the tax sale become reimbursable (attorneys fees, title search fees, etc.). At that time you can hire an attorney.

First thing I do after getting hired is perform a title search to see who has interest in the property. Then I send them the required notices to file a complaint.

Then, after the notices expire (after about two months) I can file the complaint to foreclose the right of redemption.

In my experience most people actually redeem the property by paying off the lien and my client's expenses before I can file the complaint to foreclose.

Owner's have the right to stop the foreclosure by paying off your expenses and the lien up until the final court order. Which they often do.

For the complaints I've filed last December I still haven't had a court date yet. So the owner's can still stop the foreclosure.

I still think it's worth doing. But I'd only do it if I could buy lots of liens so hopefully 1 or 2 actually result in obtaining a property.

Thanks a lot Brian for responding. I would love to talk to you over the phone. Do you have any idea what is percentage of redemption rate? Is there a difference in Suburban vs Rural vs Urban properties?

So based on your post, the strategy seems like buy a whole bunch with doing minimal research on the property, because most of them will pay. I guess you are screwed (for lack of a better word) if the owner doesn't pay or it can't be foreclosed. Would you mind sharing some of the reasons that would stop you from foreclosing the property altogether?

Would someone who has actually bought the lien and foreclosed on the property mind sharing what minimal research they did before putting in the bid at the auction?

1 Vote

Originally posted by @Albert Stancato:

Maryland is a bit similar to Indiana in the process.

I bid at counties which have several thousand certificates at each auction. Because of such a strong economic environment, there are Many of the best properties pay just before the auction. Therefore, much of the research you will perform is in vain.

However, research you must. You cannot legally go on to the property. Furthermore, occupants of the home get very agitated with people creeping around their homes for weeks prior to an auction. I am a realtor who has access to the MLS. I use Google Maps and the county GIS. Then I drive and personally examine each and every property. I take pictures of each one and research them on the MLS. It is impractical to perform a title search on each property. That is done later in the process.

Good investors are all performing their due diligence. Even still you could end up with a property which is crap inside.

The redemption process in Indiana is one year. I implore you to involve a seasoned attorney. If you make any legal mistakes, you could forfeit your entire investment on a legal detail.

I pay my attorney a flat fee for a title search and to notify everyone remotely having interest in the property before the six-month mark. After one year, my attorney will petition the court for the property.

Bankruptcy can be highly problematic and happens more than you think. In Indiana, you have only three months to petition the court. There is not a bankruptcy trustee I know who would release an asset just because you have a time frame. Therefore your attorney must petition the courts for additional time and consideration.

Tax Certificates are very risky and very rewarding. Finally, you must get a title more marketable than a tax deed. We can use a title company to create a tax certification or petition the court for quiet title.

It is a game of patience and perseverance. Not many investors will invest here. Take your time and study your market and process. Start by finding a "Seasoned" attorney, not one who wants to learn the process on your dime.

Thanks a lot for taking the time to answer the question.. So here is the one thing that bothers me the most.. In what situation the investor can lose all the money?

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A group of investors that I am associated with is considering investing in Maryland Tax Liens. I know the basics of tax lien investments, but wanted to gain some insight in two things:

a) What is the qualification process one has to go through beforehand to ascertain whether a particular tax lien is a potential good investment or not. My understanding is that a tax lien will wipe out majority of junior liens, except for say IRS debt.

At one point when I inquired about this, I was informed that a basic title search is necessary on the property to see how cloudy the title is for the investment - especially when it comes to chain of ownership, and whether the potential investment would qualify for getting Title Insurance.

Who are the players in Maryland who can help out with this.. Are there title companies or real estate attorneys who specialize/ assist with this.

b) How complicated is the foreclosure aspect in Maryland if the taxpayer doesn't pay during the redemption period. How do bankruptcy laws interfere with one's ability to foreclose on the property? My understanding is that it can severely delay the process. Who are the players in Maryland who have experience with helping investors with this kind of issues.

Any thoughts from the experts who might have knowledge of this topic. @Ned Carey @Russell Brazil

1 Vote

How much will it cost to pull permits and split everything, so each unit is self sufficient and independent. Given the fact that your property is in Brooklyn, I am thinking it would be worth it as a percentage of actual sales price, even if it costs you say $10,000.

I recently sold one of my Richmond, VA units, and the price to split water was $6000. I had to give a little bit of credit to new buyer, to push the sale. It's definitely worth it in the longer run to split these costs, and let the tenant pay their own bills.

1 Vote

Originally posted by @Clint G.:

@Chinmay J.

I'm working with a realtor, and she didn't say why it's been on the market for so long. I suspect it's the foundation. I'll ask that question specifically.

No not your realtor. It needs to come from the listing agent, not selling agent.

1 Vote

Originally posted by @Clint G.:

@Chinmay J.

This one has been on the market for 155 days. Seller is offering 1100 credit to fix the issue so it's possible they've had someone look at it already.

I'm also worried about 20 years from now if I want to sell it if the issues will only get worse. I believe the house was built in the 80s.

As and investor and realtor, I have dealt with many houses that were built way before 80s. (I reckon you mean 1980s and not 1880s). I would do due diligence. Have you talked to the listing agent to find out why the house has been on the market for so long? Are the issues that big that has scared seasoned investors away or is there something else going on here. If the house is rightly priced, and there are no issues with getting clear title, it should have been sold by now. You really need to find why the house is on market for..hmmm half a yr now..

Please proceed w/ caution and with help of seasoned professionals.

1 Vote

Originally posted by @Clint G.:

I'm looking to invest in my first property. One SFH I liked today has some foundation issues. I'm not sure of the extent yet but I have a foundation company coming to quote it tomorrow.

I don't have it under contract but should I even consider it? Everything I've read says "no".

Anyone have experience here?

Not all foundation issues are alike. They can be fixed. Minor issues can be remedied under $1000, while some big ones may cost tens of thousands of dollars. I would put the property under contract with 10 day due diligence period, during which you can get all the inspections done.

The company may come and look around, and give you a ballpark quote or general idea, but I wouldn't expect an official report unless it's under contract.

How long the property has been on the market, or is it off market deal.

I would not run for the hills, but proceed w/ caution.

2 Votes

I sometimes post sober. Rarely tough.. lol

5 Votes

Originally posted by @Derek Morrison:

Thanks everyone for the feedback and advice! I suppose what I was trying to ask is: "how do you find apartment complexes for sale?" Is there an MLS-type service for this? Or do you just happen to see for sale signs as you drove around?

We know what you are asking.. Plain and simple. Your question cannot be answered in the format that you are looking. Unless you mean small multi families, like duplex/triplex/quad etc, you can't just drive around looking for 15-20-50 unit MF apartments. A lot of these apartments are sold through brokers, so good relationship with brokers is must.

But even before that, what is it exactly you are looking for. What is your experience in real estate. Have you ever done a deal. Most people go from Single Family House to Small MF to Large MF. Yes, there are a few who have gone directly to large MF houses, but the learning curve is going to be steep. And given the fact that you are asking such a naive question, tells me that you might not be ready for prime time.

Once you can narrow down your question to something more specific, people can answer it better. Until then you need to do lot of homework.

2 Votes

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All Forum Posts by: Chinmay J.

Chinmay J. has started 51 posts and replied 1181 times.

Post: Can I retire at 39 years old?

Post: Tax Liens in Maryland.

Post: Tax Liens in Maryland.

Post: Tax Liens in Maryland.

Post: First Property in NYC! How would you handle?

Post: Foundation issues: Run for the hills or repair it?

Post: Foundation issues: Run for the hills or repair it?

Post: Foundation issues: Run for the hills or repair it?

Post: Drunk posting on Bigger Pockets

Post: How do you buy an apartment complex?