All Forum Posts by: Joshua Houchins

@Prasoum Dane zillow is not very accurate in some aspects of its data.   Every state has different foreclosure laws and procedures.  I know nc law but really know nothing about ma law.  But in general the foreclosure process is going to have to pass through the court system some states fast than others. Once the process starts this information is public knowledge meaning it can be retrieved via your states court records which most will be available online other you may have to make a trip to the courthouse.  Maybe pay a local real estate or an attorney that works on a lot of foreclosures and meet with them briefly to advise on your states exact laws.  

A direct mail campaign is another good idea you might not only get preforeclosures but you might get some great motivated sellers.  Also properties that already have been through the foreclosure process you can bid or make offers on these properties this again depends on how and what your state allows after the process.  Sometimes if the property is in pre foreclosure or already been foreclosed on does not mean it's a good deal a lot of banks are getting higher prices than ever on there forclosures.  Also check with some of your smaller and regional banks and get a list of there reo properties.  Hope this helps you out and good luck.

@Tim Shoemaker everyone above has given great advice.  One other thing I do is find all of the reo property find what I can pay for it to make a profit and submitted a low offer on them. In today's economy not all banks will take it but you never know I submit 20-30 offers a month like this  usually will get one or two the take my offer.  along with the other marketing advice listed above.  Fixing and flipping is easy finding a stream of deal separates the pros and amateurs.  You just have to keep pressing and hunting for deals you will find them just takes time and effort.

@Sagnik Lahiri first off if you make money you are going to owe Uncle Sam.....

Second,  I would not transfer the property prior to selling it some traditional lenders might not make loan available to your seller with a pre close transfer.

Typically but I am not a cpa and that why you should hire one to consult but I typically try to roll my profits into other deals and keep your p & l low but obtain more passive income on the profits.  Seems to have helped me in the pass:

@Alexander Flores what is your strategy moving forward after this purchase?

My advice which everyone has there own formula ..,.but if you only have 200 per month in cash flow what if you have to replace a water heater or the hvac goes out? You are now cash flow negative. I typically recommend to have your payments 40-50% of the rent rate.   I also typically want to have a minimum 10% cap rate.  I also focus a lot of my cash on cash return.  Glad you are taking the steps to get into the business good luck any questions please let me know .

please only reply to this is you have actually done a refi on a rental property with the firm you suggest....

I have a business associate who called me today he has a property that he owes nothing on. His credit is a bit shakey and is looking to refi some cash out of it for another deal he working on. I have plenty of contacts for fix and flip loans but nothing for refi's any suggestions would appreciated. 

@Judd Campbell spray foam is rather expensive if this is for a rental property you can rent the blower from lowes or Home Depot but it is not that much more expensive to just have an insulation company come blow it in. They can do it in less than an hour and supply you with a certificate once complete. 

@Brandon G. I am not saying it can't be done but I deal with one of the top real estate attorneys in the state and again you don't own the property you are simply taking over the payments and not all mortgage companies will allow you to pay on the actual owners behalf. Since you dId not actual buy the property how are you going to get title insurance? If you doc the existing policy the owner is still on the DOT. His actions can still be docked to the subject property. I just pre warn anyone who is beginner of handling any sort of creative way to obtain "control" not "ownership" of the property. I personally have attempted a few deals earlier on in my career like this and my attorney strongly advised against them everytime. There is a lot that can wrong. Now Texas might have some sort of miricale law that I am not aware of I am just simply stating the risk you are taking.

@Tony Ngo a "coming soon" sign is always good but a pre sale is a double edge sword. I can go on for hours about it but in general most buyers will use emotion to buy homes in general with that being said if you sell it before you are finished and the buyer decides they want to "change" or "pick" certain finishes etc.  this is the most important part ----make them pay upfront the cost of the change plus the cost of what it would cost you to put it back how you had originally planned it. This money is non refundable if they close obviously it goes towards the sale price. In general the more out of pocket cost they have the less likely they are not going to walk away from the deal. Plus you will have the headache of building a property for someone!

I typically do not presell rehabs unless I am very close to finishing. But coming soon signs and good marketing prior to coming to market is always a plus.  Good luck on your project.

@Brandon G. Not sure I understand your question but I would assume you acquired the property subject to and have found a buyer that is doing a lease option on the backside???

First things first subject to deals are risky..... As I stated many times before lets say this deal actually is ready to close your tenant came through with the money..... Well the property still belongs to your seller ....is the title still clean or was it ever??? In that six month period what if he got sued and judgment was rendered or a tax lien was placed on the property or he went bankrupt,  what if he defaults on the mortgage?? There are a lot of things that could on in that period. I suggest stay away.

Also every good investor has a good attorney..... I am not familiar with Texas law so I would consult the attorney on that exact state law.  Hope that helps.

@Belinda R. I would assume with any property that is on the market that long it is over priced.  First step on your next deal is to hire an agent who will give you an accurate price not just get a listing! Those agents you need to run away from.

As stated above I would take the 50k nonrefundable down payment make them responsible for all repairs Maintience etc set them up on a lease to own so if they default you can get the house back faster than a foreclosure.  Next make there monthly payment interest only and give them 12 months to buy maybe 24 months.  If they default you could essentially sell the house again for 35k and make what you were originally asking. But after 10+ months on the market you should take the deal, lick your wounds and move on to the next one.  Not every deal goes perfect keep your head up you seen well balanced you will do well in the future.