All Forum Posts by: Gabriel Smith

I'll I'll keep looking for deals. I don't like the idea of quick claim deeds. That's why I posted this because it made me uncomfortable in the first place. I'm still not going to go sell ice cream.

Thank you ! 

I appreciate everybody having my best interest in mind. It's definitely such a small margin for-profit it doesn't take much to see that it's a lot of work for not enough pay off. If the bank would take less that might be a different story and it may not take that much in repairs but the numbers would have to change drastically. 

The guy only owes 330k on the property. It seems like the agent wants the equity , wants me to pay off the arrears,  and if I profit anything that's what I'll get.  I could see the sub2 working because of the equity but not with the agent. I'd be better off trying to work directly with the bank. I think I'll just walk away.

I like what you said about net profit Mike!

Is $60k what you make on flips? I figured 20 - 30K would be decent (not that this deal in particular fits the bill) . All of the figures I provided were basic rough estimates to give a sense situation. It's only the listing agent so 3%  and we can negotiate the lien because it's about to forclose. 

This is honestly the first deal I've even looked at and haven't done all of the numbers. I am mainly trying to find out if the strategy to get it in the first place. 

Based off all of the feedback so far I will most likely be running the other direction but I would like to know how people feel about quit claim deed transfer as a low money down strategy.

Thank you for all the honest feedback! The only way to make it work is to get it for less than $325,000. It's in pre-forclosure so I don't think it will happen. 

I was really hoping to here someone who has used a quit claim to get a deal though... Is this uncommon? What added expenses will there be?

Hi everyone! I'm looking to get started investing and I have some cash to do it. I'm interested in a home I found through an agent at a Meetup and I think it has some potential. I'm still running through the numbers but I think it's going to be a narrow window for profitability. It needs carpet and a few patches in drywall. nothing too major other than the driveway and front porch have settled a little so I may need to do some concrete work. other than that pretty much three to four months job I think. The property is listed at $365,000. based off comps from two different agents the arv would be about $410,000. I'm thinking about $35,000 or so for repairs. I may be able to get into the place cheaper if the seller quit claims the deed to me. He owes $330,000 on the home and needs $26,000 to become current. Then I would be making his $2000/m mortgage while doing the repairs. The home also has an $11,000 lien against it but the agent is supposed to talk to them about a settlement. Obviously the cost of the home is the same either way but I wouldn't have to put down the 20% down payment to purchase the property. I could do everything with the cash I have now, I think. I don't know much about the quit claim deed process or how this can get me into trouble. I this process common? Any Horror/ success stories to a similar situation? Thanks, Gabriel

@Jeff Zinsmeister , That's cool! I will definitely have to look into that! It's Wells Fargo so who knows but I will definitely try! 

Tonst of great info on this thread. Thanks!

Yeah that was years of mistakes I'm leaning on. It has put us in a better opportunity for success but on paper it's ugly.  

All these guys posting thier insight from experience is extremely beneficial. I look forward to looking into recasting the loan. I've never heard of it. I thought I was stuck unless I refi. 

Thanks again!

Oh yeah! They we're all rolled right into the loan. I didn't say any of the other times were smart! I was just looking at the end # per month then and scraping by. We honestly had no business even buying a house at that time but we were able to jump in and the next few years were pretty rough. I think I made 40K a year and had a $1400 mortgage at least 8%!! We are finally getting to where we can get ahead and start to invest. 

No I'm not sure what rate I got when I first purchased the home . It was terrible. over the years I didn't know what I was doing. and scraping by. The first mortgage was $1400 /m then we got to 1200 and now we are at 899 4.25 % FHA. I wanna say the first was 7 or 8%

Awesome! Thanks @Russel Gronsky. I will ask about recasting and see if we can conjure up some deal. The best part of this is my wife keeps asking why we don't just wait till it quits so I guess she's right again. I can't let her see this forum post. It was really just my assumption that after 33 years it was on it's way out and it was more for "peace of mind". I get it inspected every year and the HVAC guy never tells me to replace it so really there is no reason to do it now. Do you generally work your cap ex #s a little higher if you purchase a rental with an older furnace? What %?