All Forum Posts by: George Nyquist

@J Scott Hello J, I came back to this post to see if you had found an attorney in the area and who others had suggested. I see that you have, congrats. I also see the offer for an electronic copy of one of your books. If that still stands I would love a kindle copy of,  “The Book On Estimating Rehab Costs”. Thank you in advance and good luck on your SF project. 

P.S. I was unable to find the email you referred to in your sig. might you be able to PM me a link?

The rest is just the basics based on your chosen exit strategy. A general rule of thumb is...

Max bid = 60% of ARV, minus repair costs and outstanding liens (the ones that won't go away). Your mileage may vary depending on your market and the competition.

The very short version, try to buy them at the tax deed auction. Perhaps buyout the tax lien investor’s position on number 2.

The first step is to read every bit of information that the county puts out regarding the sale. Pay careful attention to the registration procedure to make sure that you are not disqualified before you even show up. Make sure you bring the proper payment method in the time period noted by the county. Talk to LOCAL agents/investors/property managers who may have done these deals before. They can let you know what to watch out for that is specific to your area of interest.

There is no such thing as doing too much due diligence in tax deeds.

The non-governmental and non-HOA liens will be wiped out (HOA May get wiped in VA, I haven't looked into that state). Add up the remaining liens that may be on the title from the utilities, state taxes etc. and subtract that from your final bid. Don't worry about the IRS liens. 99% of the time they will sunset as Jay mentioned.

I like to check if there are outstanding code violations. I also physically go to every property I might be interested in to gauge possible repair costs. 

If you win and want to sell with marketable title, you will need an attorney to do a quiet title action as you will receive a limited warranty deed, not a warranty deed. If you want to keep it as a rental you don’t HAVE TO do it, but I still would.

Bonus tip: Sign up with PACER to check if the homeowner is in bankruptcy. If so I would drop that property from my bid list. Getting tied up in court is no fun.

After that it’s back to the basics of running your business how you see fit.

Best of luck and let me know how it goes!

I’m hoping some San Francisco Bay Area lender, loan officer or other finance folks will chime in here.

Thank you for your reply and your concern over the idea @Kerry Baird. The meeting they had with the FA is how they came to learn of their projected monthly deficit. They specifically want to stay in SF and use the equity in their home to invest.

Good evening BPers,

My parents are in their late 60s and early 70s, both are looking to retire in the near future. Their retirement income/expenses projections show them running a $4k/mo deficit. The idea is to secure a HELOC on their home (I'm open to other suggestions) in order to invest in income properties out of state.

I'm hoping someone can direct me to a product that meets our needs. 

The stats: 

My parents have a duplex in San Francisco. One side is their primary residence, the other side is a rental. 

At the end of 2016 we locked in a VA 30 yr fixed at 3.25%.

The current balance is $462K. No other debt, secured or unsecured.

The appraisal came in at $1.158MM.

Credit is over 820 for each parent.

Combined gross income is enough for most products available.

Please let me know if you have any suggestions, referrals, strategies etc.

Thank you!

SF Planning’s short term rental policy is that only the property owner can offer the unit for short term rent and only then for a limited amount of time per year. I would imagine that if there was some provision in the lease barring the tenant from any short term rentals it could be enforceable as breach of contract (search the 15 just causes for eviction in SF).  I also believe, but am not certain, that the tenant would be entitled to a three day notice to cure.

Best of luck to your family member.

@David B. message sent

Yes, I have worked with all 3. They each have different approaches.  Personally, I prefer working with Dave but the other two are also excellent attorneys. Andrew and Daniel are a bit more aggressive than Dave and some situations call for that.