All Forum Posts by: Bruce Lynn

@Abel Teklu Same Eddie Speed...he is based in Dallas area last I knew.

I found one .pdf he produced... http://noteschool.com/wp-content/uploads/2015/04/Making-Money-From-The-Meltdown.pdf

@Abel Teklu

I'd be surprised in most cases if there is any impact to credit score.  I'd be surprised if the government agencies report to credit bureaus.

Look up Eddie Speed and contact him for a referral.  He is probably one of the more experienced note buyers in Dallas area.  He also has a .pdf book around that he would probably give you that is a good reference to buying notes.

Two ideas... one is the mortgage gets wiped out....that's one idea.

Second idea is this almost never happens....for a couple of reasons....one is that most people escrow taxes and insurance...so the lender pays.   If they don't escrow and don't pay, the lender will often step in and pay...and then foreclose on the owner themselves.   

Interestingly enough if the home does hit the tax foreclosure list, it seems like most often the lender will pay the taxes the day before or the day of the sale....so those disappear and never hit the actual sale. 

Probably still worth a look and some research....as maybe they miscalculate and don't pay off before the sale....but then again maybe they will redeem...or better yet challenge you with a lawsuit saying they weren't properly notified before the sale and ask for the sale to be voided.

I'd be interested to know if anyone has good stories where they bought at auction with a mortgage that got wiped out and they ended up getting the house?

Some loans will allow you to rent it for a couple of months before you have to occupy it as your primary residence.  Could you buy one with leases in place, but almost at the end of the term.

Keep them until you are ready to move in.

Tricky I know, but just a thought.

Or rent it to a friend or family member for a couple of months.  Rent it AirBNB for a couple of months, something like that?

Sometimes the trick is finding a duplex with one side empty or even both sides empty to buy.

There are several challenges..... really they need someone with power of attorney to sign for them.  Ideally that should not be you.  They need to set this up way ahead of time.  So they need to get the notarized document from the title company you plan to use....they need to get that notarized at an embassy or consulate.  Sometimes that is easy sometimes it is not.  Sometimes you may have to make an appointment 2-3 weeks in advance to get that document notarized.   Typically someone at the title company likely needs to speak Chinese or your client English to verify the document is still in place on the day of closing.  The title company typically likes to call the client and ask them if Power of Attorney is still valid.

The other challenge is that the money needs to be on hand for closing.   If they are convinced the want to buy, I would have them wire money to title before you contract or to a bank account in the United States and outside China.  Crazy things happen in China with FX transactions and they seem to be cracking down even more now.  Some people seem to be able to get money out no problem and others have trouble.

You may want to check with your broker and the E&O insurance to see if you can sign with Power of Attorney. If you are somewhat risk adverse you probably don't want to sign. You want someone else they know to sign on their behalf...friend, family, lawyer, etc.

Did you sign anything at title that said you were willing to fix clerical errors?

Remember CAP rate does not tell the entire story. It might be like looking at PE ratios on stocks.

You might get a super cap rate on a $50,000 60 year old house that rents for $750 in a tough neighborhood...or 8% on a newer house in a hotter neighborhood with great schools that will appreciate more.

CAP rate really is a way to compare income returns on properties with different prices and different rents. It doesn't take into account things like location, risk, condition, likelihood of appreciation, type of renter, turnover, repairs, etc. So it is not the end all be all the only way to evaluate property. Just one tool of many.

Lots of people moving to Texas...from NE ...Midwest...and California.

Nice prices, better yields...newer properties in many cases.

I'd say spend a bit more in areas that are growing and with good schools if you can.

In the bad neighborhoods you typically will get the least appreciation, but yield might be a little better on paper.

The very best school districts in some cases have seen both great rent increases as well as great appreciation.  It's always a balance though of growth, price, rent and some other factors.

#1....go to the tax authority and ask for a payment plan.

#2...if they won't do it, then look for a property tax lender.

#3...someone will give you a loan based on your equity, I'm sure. Go to a REI club in your area.

#4...you can sell it and pay the tax at closing if you can do it quick enough.