All Forum Posts by: Hal Thompson

@Christian Wathne

What price are you trying to rent this at?

@Chris Bennett I don't see the rationale for selling at a loss at this point. Also, what is a "mp" house?

I would work on trying to get the rents up. All the rest of the hard work is done. If you sell now, you basically hand someone else all the fruits of your labor, without getting to enjoy them yourself. I see little reason to do this, unless you are just done being a landlord and renting this house is ruining your life in some way.

If rents were to crash 20%, and it would ruin your life/credit to have negative cashflow on this unit for some number of years, there is perhaps a rationale for dumping the property. But if it's me, I would just hold on and wait for inflation to get you back to even at the very least.

@Mark Buskuhl I'm not a lawyer, and I don't buy in Texas. But I do buy a lot of properties that fit in this type of category. This sounds to me like someone picked this unit up at Sheriff's Sale (HOA Foreclosure) to rent it out until the bank foreclosed. You didn't really elaborate on who is foreclosing now, but I assume it is the bank? You say "Default judgment for plaintiff" for example, but you don't say who the plaintiff is. Is this timeline all part of one action, or multiple (i.e. hoa foreclosure, eviction, bank foreclosure?). The title search is going to be less helpful here than the court filings... that's what you really need. Time to take a trip down to the courthouse, or get a courthouse doc puller to get them for you.

@Darren Fettik That's certainly one way to play it. Florida's court system is slow to process foreclosures, and the banks are so slow to initiate foreclosure, that this strategy should work, as long as you don't pay too much. The resigning of the one year lease every month seems kind of shady... if the bank wants to fight you on that, the court might throw out the lease. Also, probably not a great idea to be posting about that publicly, if that is what you're doing.

@Racquelle Jensen you're kind of late to the party. also, unless you're prepared to fight the banks in state or federal court, or both, you might want to hold off. there are people who are gambling in this rodeo and could win big, but it's not a good option for the casual investor.

@Ryan Kennedy Kind of a nasty house. What's the play here...renovate it and flip it? What do you think they'll get on the flip?

@Ryan Kennedy Can you post the address? Would be interested in doing my own analysis.

@Ivan Correa We are in the midst of a historic property bubble fueled by low interest rates.

Want to know what happens when interest rates rise? Prices will go down.

Just consider that by refinancing your property, you are effectively buying into the house again at the current market price. If you then go make other investments at current high market prices, you have greatly increased your exposure to a downturn.

Of course, it's possible this bull market in property continues indefinitely. That was the theory last time in 2007, remember? But of course, this time it's different...

Hi Backpagers-

I am currently in the process of trying to buy a distressed SFR from the wife of the deceased owner. The property is in pretty bad shape, and will need a lot of work. There is a first mortgage for approximately $240k, and a second for approximately $150k.

Whether the house is a good deal or not will depend largely on its structural integrity. Because it has been abandoned for a long time, it is possible it must be torn down.

I have been in these types of workout situations before, but my success rate has been low. My "bedside manner" needs some work I think. I also could use some advice on how others have approached talking to distressed homeowners about workouts. For example:

1) Do you offer some cash upfront, regardless of whether the workout succeeds or not, in order to get the property under contract and do an inspection?

2) Do you have a script or specific approach to explaining the workout to the homeowner?

3) Are there things I should say, or avoid saying, to the homeowner?

4) What is the best approach to getting the property under contract so I can inspect it without fear or someone taking the deal from me (but also giving me outs in case I want to bail)?

5) Do you have any specific releases that allow you to discuss the outstanding loans with the bank(s) that are known to work? (most banks require authorization to discuss loans).

6) Any other thoughts that you have found helpful in this situation.

I have an introduction to the homeowner, which is often the hardest part, but I want to pre-plan next steps.

Thanks for your help!

Hal

@Steve Babiak Ah...good point. Tax sales are so competitive these days. A lot of them have moved online, making it even more crazy competitive.