All Forum Posts by: Dave Anstatt

Thanks @Daniel Alegre.  I don't have any specific questions but am interested to know what his general underwriting guidelines are.  I would be interested to learn what comes out of your discussion.  Thanks for sharing.  

Since the only evictions I've had to perform were on properties owned in an LLC, I've had to use an attorney according to state law. It typically costs $250.00 for the attorney to file, appear in court and apply for possession. It's an additional fee if I've gone as far as needing the Sheriff for lockout ($75-$100). In some instances I've filed myself ($29.00) and then just arranged for the attorney to represent me in court. This has not been an issue since he's typically there anyhow representing other clients. When I've done the filing he charges me $150.00 so I save about $55.00 when you include the parking fee for filing at the court house. Not really worth it when you consider the time involved running tot he county court house, but I have found when I do it myself I seem get my court date quicker.

@Rah-sheen Blalock my evictions are in Essex County.  PM me if you need the name of an attorney.

Welcome @Anthony Standard , great to hear you're out there making connections and taking action.  Best of Luck.

I Spoke to attorney who wasn't very comfortable with situation because it could drag in courts for a year.  He did suggest knocking on the door introduce myself as working with the current owners and try to ascertain their intentions.  Not really comfortable with this approach, but it seems like it's better than nothing.  The intent is to see what their position is (i.e fight to the bitter end, cash for keys possibility or possible rental deal).  For the later the idea would be that if I offered them a short term lease to cover my costs that the occupation would transfer from a former owner situation to a tenant situation with the hopes of eviction as a result of lease violation (rent arrears).  In the least I would get it into a landlord/tenant situation, cover costs and perhaps positive cash flow, but most importantly, get a date final on possession.

I realize I'm limited in what I can do or have them sign in terms of a written agreement without having ownership, but the intent is to get a gauge on how long I might be owning the property with these folks still in it.

1.  Has anyone had any experience in reaching out to the former owners under these circumstances?

2.  If so, what was your approach and what was the result?

3. Does the rental option make sense or is it just crazy?

i appreciate any insight you may have.

Thanks Ned.  I spoke with a friend who has done several of these and he assures me that the title company our attorney uses has in fact provided title insurance for such properties. So, that is reassuring.  My other concern is how long it may take to get the former owners out of the property and I realize that's state and county specific.  Thanks again for the insight.  

Hi all, I've negotiated a deal through a third party to purchase a property that has been foreclosed upon by the tax lien holder. The Union County tax records show the deed was transferred in June 2014 to my Seller. It is now more than 90 days from that date. I do not believe there is any chance of redemption at this point but I'm told there is a slight chance a court could reverse the transfer (sale) under certain conditions. Not sure what they would be (?). Has anyone had experience with this in the NJ court system. As I understand it, in NJ, the property owner has 2 years to pay back the tax lien before foreclosure can start. Then there's time during the foreclosure process to pay it back. I really feel the former owners have had plenty of opportunity to pay back the taxes owed if they wanted or were able to. My concern is that they are presently occupying the property. Does that in itself pose any greater risk of redemption?

Obviously I'd like the place unoccupied when I close, but the deal wouldn't be as sweet as it is if that were the case. I'm told there are a number of interested parties ready to buy, if and when that's the case. The present owner has recently filed for a writ of possession. I'm not too familiar with the foreclosure process and rights of the former owner/occupants. It appears to be a well kept property with a good spread for a flip, but the last thing I want to do is tie my money up for many months until the "eviction" works through the courts.

So, my questions are:

1, What if any, possibility is there of the former owners getting judgement in their favor, if at this late stage of the game they come up with money and claim some hardship/right to property?

2. If I close and take over the writ of possession/eviction process how long might I have to wait before they are removed by the sheriff? I realize this is dependent on workloads, but has anyone had experience with this in Union County recently.

Thanks

@Rah-sheen,  Essex County is comprised of many towns with many neighborhoods and sub markets within each town.  Of coarse there's money to be made depending on a multitude of factors.   What town are you purchasing in and what are the numbers you're dealing with.  Is it a hold or are your plans to flip?    

Hi, @Robert Carpener. I just did a tax appeal for a property in Newark, NJ (Essex Co.) this year.  As I understand it the deadline is April 1 for appeals for the previous tax year.  I was able to reduce the taxes on the property by about $4000 which amounted to roughly 30% reduction in the annual bill.  Hire an attorney. They typically get 50% of the annual savings for yr.1 and you get the other half plus full savings going forward.  The process is outlined in the link @Darren Sager sent.  The attorney will hire an appraiser who will typically appraise the prop. using comps.  In my case there was a communication breakdown (don't ask) and it became too late to get a professional appraisal befor ethe hearing date.  My attorney prepared his own based on an income approach (rental property).  This was submitted to the city tax assessor, we came prepared with it, but the assessor apparently "lost our file" and was therefore unprepared.  In waht semed like a harried review they did some calculations on the spot and threw out an adjusted assessment based on that.  We refused, they came back with what seemed like a more reasonable number and we agreed.  I still think we can reduce it more and I will appeal again next year.  The reason I agreed to the number then was that if we didn't it would have been bumped up to the state tax appeal board which, as I was told, is much tougher in their process.  Not sure what the results would have been if they had been prepared, but in my case I didn't have to pay for the appraisal  ( about $1500 ) and walked away saving $4k.  

In your case I would think that if the ARV is $300,000 and the appraisal is done after the repairs have been made it would reflect the comps in the area which is what your ARV is based on anyway. So, unless your looking to hold the property unimproved until the appeal, the assessment would be based on the comps i,e, the ARV.

I was pleased with the attorney I used and I'm sure he'd be happy to discuss your case if you gave him a call.  PM me if you'd like me to give you his contact info.

Good Luck.

Hey @Darren Sager, congratulations.

Welcome Chris, I too am new to Bigger Pockets. Your project sounds great. I'm invested in Maplewood, NJ and Downtown Newark. All properties are within walking distance to the train station and in the case of Newark both train stations. Can't go wrong being within 30 minutes of Manhattan. Best of luck with your project and let me know if you'd like to discuss anything.

Darren, loved your podcast!