All Forum Posts by: Roger Blankenship

When you place a property under contract equitable title has passed. Equitable title is not the same as actual title of course, but does come with certain rights. I doubt Illinois law prevents "for sale by owner." But to be properly careful wholesalers should always market their contracts, not the properties. That's true in all states. 

Angel Oak stepped in to help me when I had a complex project that was nearly completed when a contractor walked off the job. I needed more time as my previous loan was about to expire. They approved the loan, agreed to provide more cash than I requested to complete the repairs, and then disappeared. I found out 3 days before the other lender was foreclosing that they had decided not to fund me. This was a shameful way to treat a good borrower. I will do all I can to avoid this lender in the future. 

Please do not spend the money. Everyone needs some information and training, but the most important thing is to just get going. 

No I haven't but that's because I'm more of a bottom feeder when I purchase. I buy distressed or foreclosures and there usually aren't many of those around college campuses, especially big schools. However, my daughter rented a house while she was at GA Tech and I analyzed her landlords numbers and it looked like a good thing. I also have a friend who does this exclusively - he just buys whatever he can find near an SEC campus and rents to college kids. He almost doesn't care what he pays - he says he is doing very well. 

I have bought dozens of homes in Clayton County and still own a rental there. I would sell it but I'm crazy upside down on it. With one exception I haven't purchased anything there since 2006. There are problems with the schools, problems with almost everything related to governance, but mostly the problem is home values. Except for the area around Lake Spivey and near the Fayette County line, it's just a tough place to sell - especially to owner occupants. Here's my one exception: I bought a short sale for 15k, fixed the house up and sold quickly for 50k to a rental investor. Knowing that was a rare find, I don't spend any time looking for deals in Clayton. 

Buy something near the USC campus and rent to college students! 

My answer would be modified perhaps by the specific county where your house is (not that I'm asking). In some counties in Georgia where I hold rentals, the local magistrate judge is predictable and abides by the law. In other areas, judges are sometimes much more lenient with tenants and knowing this makes me more interested in working something out with the tenants.

In general, people rent because they haven't done what it takes in their personal lives to buy a house. I say this as an observation, not to be judgmental. In 10 years of rental home ownership I've yet to meet one tenant with any significant cash reserves. Therefore a death in the family, lost wages, or almost any unexpected expense can put them behind. Assessing late charges and expecting payment in full seems to them like "piling on" even though it isn't your (the landlord's) fault. One approach that has worked for me (with tenants that have a good history) has been to offer to allow them to catch up deficiencies over a 3-4 month period with slightly higher payments. It is important you get any agreement in writing and imperative that you understand local tenant laws before you do something like this. But if it works out, you have 

1. Helped some people out who probably really needed it.

2. Saved yourself the expense and trouble of eviction.

3. Saved yourself the expense of preparing the home for new tenants.

4. Sown a measure of "good will" with the tenants. 

Best of luck!