All Forum Posts by: George C.

Rick,

I bought an REO off a bulk buyer / reseller a year and a half ago. It was a quit claim deed transfer, I of course had a title search done while in contract before close & got title insurance. It was one of my best deals. I'm sure the fact that it was a quit claim transfer scares off most people, even though you have a chance to title search prior & buy insurance... That's ok, more for us :)

Stephen Dillard,

I was wondering if you went any further into the process with the subject to deal. I know a couple multis in my area that may fit with a subject to, owners owe about what the property is worth and are looking to bail. The subject to idea is new to me as well, it is a cheap & easy way to get into a property that you might not have enough money, credit or time to qualify with a new loan & the added expenses of a normal purchase.

I can see over buying some, as long as the numbers work and your ultimate goal is achievable.

I wonder if you had or wanted to refinance into a new loan, say after two years to prove rental incomes, how will a new mortgage company look at the subject to situation? Would it even be an issue?

Real estate investing sounds great, most people can't handle being a landlord though. One professional deadbeat will kill all landlording ambitions for most, and these folks are probably the first in line to do a subject to deal.

I do all my own repair & maintenance to keep cost's down. I don't have a 9-5, so I have time & it keeps me from getting as big as a house. For wear & tare, I fix at my expense , an accident by a tenant I'll fix at my expense because it keeps good will...Abuse they will fix or live with it.

When I buy a house that will be vacant for reno or clean up, I make it not look vacant. Two reasons for this, I don't want the insurance company to think it's vacant and charge me through the nose & don't want low-lifes thinking it's vacant to steal, destroy or party in.

I put cheap mini blinds up on the windows, flower pot(s) on the stoop/porch, if elect on leave lights & radio on a timer, you can leave a car in the driveway, put up a mailbox or newspaper sleeve and stick a paper in there. Borrow some kids toys like a tricycle & leave it by the front porch.

When something bad goes down, everyone gets sued, or at least gets threatening letters from a lawyer demanding a settlement. Any lawyer involved by the buyer would list anyone involved in the sale, if the seller ate a Big Mac at the closing, the lawyer would probably list Mc D's as a defendant too. I've seen where agent/brokers have been sued, or just threatened with a suit and payed up for things like, listing a Jacuzzi tub, were it wasn't the name brand & a buyer squawked and got a Jucuzzi brand tub, or stating new water heater when buyer finds out it's three years old and broker pays to replace. Septics in our area are the latest issue. If you list a house as a 3 br because it has 3 br's, it better have a 3 br septic. That's because 2,3 br homes sometimes have extra rooms that were turned into extra br with out updating the septic system. As an agent you have to do your due diligence when taking a listing, CYA because innocent people do get sued & loose money. The other thing is that lawyers know who has the deep pockets, not the agent or the broker, lawyers know there is an insurance company behind the agent that will most likely settle to make things go away.

When I would take a listing for a house on a septic, I would go to the county health Dept to find out about the septic br limits. Sellers don't all know & sometimes lie.

Agents are held to a professional standard, they should know, they should double check sellers info, especially on investment property where reported income & expenses are the backbone of the sale. Even if the agent wasn't a part of any wrong doing or had any knowledge of wrong doing, I wouldn't want to be in that agent / brokers shoes having to defend myself.

Agents here on BP, this is yet another lesson to CYA...

I bought an REO for $3,000 in 2003...and made a $500 commission on the sale, thank you very much! Agents won't turn down money too often.

If there are r/e agents involved, they have errors & omissions insurance, might be able to go after them. Eitherway it smells like fraud. I'd find out from the tenants if the leases were forgeries, if they were *I would* be contacting the district attorneys office to see what charges could be filed. A call or visit from one of those guys would make your seller be more inclined to do the right thing. If it was a short sale & the owner was insolvent...you might not be able to get blood from a stone. That's where criminal charges might at least give you some form of satisfaction.

I owned one for a year+ in PA, it was my best deal but sold it. It was a foreclosure and the other side was owned by a couple in their late 70's. Needless to say my side of the house never got cold, the heat from the other side kept the house warm enough that the pipes never froze, no peeling paint, etc for it being empty for five years. It's funny going down a street with double houses, usually one half has a different look, paint, siding, even roofing from the other. When I bought mine, my side of the front needed painting bad due to a gutter/leader leak. I offered to paint the front of both sides to keep it looking uniform & clean, the neighbors agreed, it was a win win for both of us.

My tenants loved the heat from next door, they saved a lot in oil.

I wouldn't worry about buying a half double, especially if you got a great deal on it. Where I bought, the houses were 120+ years old and survived being doubles, they'll probably last another 100 or so.

Zach,

They do build modular multi family homes. I've seen multi unit town homes, two family ranches, even concrete jail units all built modular.

I've seen 7000 sq ft homes done modular, they will build whatever you want and will customize their plans to your liking. They aren't just plain bi-level homes & ranches. My own home is a 3300 sq ft colonial on a raised foundation that is finished for a total of 4800 square ft. My last 3300 sq ft modular was $106K delivered & set on my foundation. Included in that price was 9' first floor ceilings, recessed lighting, a wood burning fireplace in the family room. You can always add or customize on site, too. Plans are included in the price of the homes & they charge a one time $60 to make changes to their plans. Do yourself a favor and start getting ball park prices from local builders for a 3200 sq ft home, then call a modular company for a price. Modulars are in the low $30's a sq foot.

A generator might be the easiest way till you get to the point that the electric in the house would be safe to turn on, you might need an inspection if the meters were pulled, depending on the power company & city.