All Forum Posts by: Diya Shenme

Well, I do not know too much about KC aside from the fact if you throw a rock you'll hit an investor/investment property!

In general, for Turnkeys, I would suggest reading:

The Best Types of Markets for Profitable Turnkey Properties

and

What to Ask When Working With a Turnkey Provider

Hi Ron, and all,   I've  been using propstream for several years.  I've also been using listsource, buying private brokers leads etc.  I've talked to many private data/list brokers.

Its a not talked about secret in the leads market;  dirty data.   If you go to yellowletters.com (picking a letter service at random, not picking on YL);  and buy their list of absentee or vacant you will find lots and lots of those post cards return undeliverable etc.  If you check those lists there will be data points not meeting the criteria of the list.

Why?

Every data source "buys" their data from counties, individual MLSs, other brokers.   IE did yoiu know there are 1100 MLSs across the country.  How many counties?   Each has their own computer systems.

Ron, it may be, you're seeing bad luck that your MLS service has a poor data feed and PS can't fix that. Same with county deed data, so many of my states counties are just poor at making divorce, BK, late on taxes data available.

I've had other services and its my view that PS is the best. I'll agree that users will have bad area due to the county or local MLS issues. In general PS puts alot of effort into only storing clean data. But as said dirty data, stale data, wrong data is an industry wide problem.

Ron, try other services and report back?  We'd like to find better services too even though I'll defend PS per my own looking at other services.

Oh it occurs to me Ron,  you may be (like me) searching for low equity owners to look for subject to deals??   There's a race track in county deeds being filed that will falsely trigger addresses to be low equity but it actually is a recent sale with a NEW mortgage.  The mortgage security deed typically gets filled much faster then the new warrantee deed.  POOF you have a lead with low equity, yeet its just sold or due to stale data its still shown in PS as active.   Look at the mortgage history and y9ou'll see a recent loan transaction and I don't know how to filter those?  PS offers years of owner ship (warrantee deed), but no filter on age of the debt (security deed).    There's no fix for this race track that I know of.  The problem is at the county level AND just how banks/attorneys rush filing the security deed.

Best of luck Ron and all,  curt

Sean

Bexar County's (along with several other TX counties) list can be found here:  http://taxsales.lgbs.com/

You can also go to Linebarger's offices downtown and purchase a paper copy of the list for $5 cash.  It will sometimes give you a little extra info regarding other liens that may be attached to the property.

I think a lot of your questions can be answered under their FAQ (http://taxsales.lgbs.com/faqs?state=texas)

How much a property sells for varies from property to property and month to month.  There is a minimum bid amount that is set for each property based on the past due taxes and attorney's fees.  There can be deals to be had from time to time - you just need to do a lot of due diligence.

Go downtown next Tuesday and check it out.  It's an interesting experience.

I am not sure on the current process for code violations list as it's been about 10 years since I last requested it.  Please post here or DM me if you have any luck.

Question for those of you who market to Tax specialty lists:

I may not have all the terms correct because it's a bit confusing to me still, but do you market to the Tax Delinquent list (Properties up for tax sale soon due to two or more years of delinquent taxes) or do you market to the Tax Sale List (Properties whose taxes were sold at a recent tax sale, and are currently in the redemption period)?

Why would you say one is beneficial over the other? Should I market to both?

Just trucking through opening up some new marketing channels, and thought this one would be good to get feedback on.

Thanks!

@Kisha Lindsay your sales contract can be the exact same as a normal purchase except under sales price you want to put see special stipulations then you want to show in special stips that you are taking it subject to. If you are going to flip it then there are several other major important things your buyer will need so make sure you get them. blank Limited POA from seller, notice to release, copy of drivers license, etc.

If this is the first one you've done then contact me and I'll email you an example POA. On subject to's you have to be thinking about how you/the buyer will interact with the mortgage company 10 years down the road so having the right paperwork up front is critical.

Your still in Seller financing.  No bank will want to take 2nd position on them as collateral.

Option 1:  Recommend, work with your parents since there are 3 properties, to Refinance with them first.  See if you have enough paid down (not likely, since you just bought in 2019), to take one of the properties out of their loan to you.  This property then is unencumbered and you can use it for equity on your next deal.

Option 2:  If they are nice (not a business concept), if one of the houses is worth $350k ($850k less $500k); see if they will release the lien against that house, if they are willing to give you a Zero % collateralized loan on the last two houses for the $500k debt.  Talk with a Tax accountant to make sure the IRS does not view this as a taxable Gift, given this is only two years later.  Or an avoidance of Inheritance tax.  Basically substantiate the price they sold to you was the same as third party appraisal.

Option 3:  Do a traditional loan, lets say at 25% down.  If $850k, then 25% = $213k collateral needed.  You would have $850k less $500k existing loan= $350k less $213k= $137k cash out refi. New interest rate would be %?? and loan term would be ??.

Option 4:  Same as 2 above, but 40%.  $850k at 40%=  $340k collateral needed.  $850k less $500k = $350k.  $340k vs $350k, you don't have enough equity to refi at 40%; and you would get $0 cash out.

Issues:

A.  If you refi to the $850k, will the three properties cash flow now?

B.  Will the next property cash flow support this added debt.  Assuming you get a Market rate deal on the 4th  property, it probably won't help support the added debt on the first three properties.

C.  Do a Risk analysis.  If you take on the 4th property, what conditions would have to occur to make you go under water?  Lets say you end up with 6 "Units" at the 4 properties, how many would have to not pay or be vacant to make you miss your P/I payments?  Just about 15 years ago, you could have bought lots of Florida properties cheap.

Make sure the added Cash can support itself.

Happy New Year everyone!

Does anyone have an Excel spreadsheet for analyzing seller-financed deals? I'd want to be able to do a quick analysis that includes the following:

• Agreed-upon purchase price
• Finance details: amount the seller would carry back vs. the amount the sponsor brings to the table, interest rate, term length, etc.
• Monthly payment amount we would owe to the seller
• Balloon payment owed to the seller at the end of financed period
• Refinance details (ARV, long-term debt interest rate and term length, LTV ratio, etc.)
• Cash on cash return during the financed period

I'm creating one but I'm not sure if I have the formulas to make sure that I have the formulas correct, so I wanted to double check. I couldn't find anything on FilePlace either. I'd be happy to share my final spreadsheet when it's ready if anyone wants that.

Thanks in advance!