All Forum Posts by: Eric H.

@Raymond Hunce What are the credit qualifications for the business line of credit? Do you mind sharing the financier?

Thanks in advance.

Eric H.

@Robin Prettyman No you do not have to do cash deals only. Check out @Brandon Turner's book on Low/No Money Down Investing. The book goes into more detail and you can also use the search function to learn more about the following strategies.

1. Seller financing

2. Wholesaling

3. Private Lenders

4. Hard money lenders

5. Lease Options

6. Acquiring Subject to Existing Financing

7. Birddogging

8. Self Directed IRA or Self Directed 401K

I'm pretty sure I missed some but this can get you started.

Hope this helps!

Sincerely,

Eric H.

@Alisha Decoteau I would start by walking and driving the neighborhoods at different times of the day. I'm not sure what your ultimate goal or strategy is but typically you are looking for the worst house on the best block. If you are brave enough, start talking to neighbors on your walks. Absolute great source of information. Other strategies include linking up with a local real estate agent and/or local investor that knows the area well. He or she may be able to answer some of your questions. How will you find that individual? Well BP is a great place to start. Set up your keyword alerts for neighborhoods, zip codes, jurisdictions that interest you. In addition you can attend some local REIAs. Identify the champs from the chumps and see what you can offer them in return for some knowledge. Invite that agent/investor to lunch on you and pick his/her brain. To identify upcoming projects you can subscribe to your local politicians' newsletters and local jurisdictions' websites. Or visit the planning office for your jurisdiction and they may be able to help.

Happy investing!

Sincerely,

Eric H.

@Ehab Tadrous It's not logical to get a title search on a house you are bidding on at tax sale because you will be bidding on thousands of properties. Furthermore, if you are looking to foreclose on said property the tax lien wipes out all other liens against property. The title company I use does not insure properties acquired through tax sale. The person you sell it to can get title insurance though. Ex: I buy 123 Main Street in Maryland at tax sale and foreclose on it (Maryland is a lien state). I can not get title insurance on it. After foreclosing on it I sell 123 Main Street to you. You can get title insurance on it.

Wholesaling is nothing more than buying low and selling high. Walmart does it. Target does it. Carmax does it. GameStop does it. So technically, purchasing at tax sale can be wholesaling if you buy low enough to make a profit. But the lien price is not all that needs to be taken into consideration. You still have to pay a lawyer for the foreclosure process and you have to pay all the back taxes and municipal fees that will accrue while the property is going through the foreclosure process. Wholesaling real estate can be done by going through the whole purchasing process and then reselling or assigning your purchase or option contract.

Hope this helps!

Sincerely,

Eric H.

@Ehab Tadrous

The Baltimore City Tax Sale is next week, Monday May 16. The deadline for registration was this past Friday though.

Wholesale criteria??.....not sure if you mean the property criteria.....if so there is none. Pretty much everything is wholesaled, even in the service industry. A HVAC company pays the technician $30/hr but charges the customer $125/hr. Buy low, sell high. The only criteria I am looking for in a wholesale deal......1. is there equity in the property? ..... 2. is the seller motivated?

Wholesaling is an exit strategy. No you do not have to perform a title search to wholesale. This is the responsibility of the end buyer.

Hope this helps!

Sincerely,

Eric H.

@Ehab Tadrous I am not really sure what you are asking......did you buy at a 'traditional' auction or tax sale? If it was a tax sale, is it a tax lien or tax deed? If it was a tax lien, you will have to pay that overage at the time the title is transferred (when you complete the foreclosure process). If you bought at a traditional auction or if it was a tax deed sale, the answer is still no. The overage is for the individual that owned at the time the property was auctioned off.

Hope this helps!

Sincerely,

Eric H.

@David Kramp Welcome to BP!!!!

I would highly recommend getting a competent attorney involved asap. Business is business and keep it that way. I don't like advising on relationships but you and your wife need to find some sort of common ground. Compromising and communication is key in any relationship. Men lie, women lie, but numbers never lie. The tenant living for free is costing you both $$$$$. Present it to the wife in this way and see what she says. I have some tenants right now that absolutely have to go. Good people but have to go because they are negatively impacting my business model. No harsh feelings but Mr. and Mrs. Tenant yall got to go.

Hold your head! Calculate your next move wisely! I wish you the best!!

Sincerely,

Eric H.

@Travis Whited Welcome to BP!!! Yeah I wish it was that simple....and im not slamming on turnkey products because you can find some good ones out there. But it will take some knowledge and due diligence on the investor's part. Furthermore the rental game is a marathon not a sprint. I would recommend that you learn how to run the numbers on a rental property to decipher the 'real' from the 'fake'. BP has quite a few calculators on the site. More importantly you will need to learn your local market/farm area. Where are the rental areas vs. homeowner areas? What are market rents in those areas? What are Section 8 rents in those areas? What are renters looking for in their property? Questions that can be answered here on BP by setting up keyword alerts for your areas of interest or attending local REIAs or linking up with a local landlord or linking up with a competent local real estate agent.

I wish you the best!! Enjoy the journey!!

Sincerely,

Eric H.

@Kim Coleman what @Account Closed says is true but I would recommend managing your property yourself while you only have one or two because it provides you with the competency needed to deal with property managers. I would argue that finding a good property manager is just as difficult as finding good contractors. And the logic applies in both situations. Know enough to be dangerous. Know enough to not be taken advantage of. That knowledge will come from being on the front line, taking shots, brushing them off, and keeping it moving.

All of which you have heard here is good stuff. I am a new landlord myself and getting that on the job training that I need to be successful.

I wish you the best!!

Sincerely,

Eric H.

@Arlen Robinson Welcome to BP!!!

The most assured way is to have a title company perform a title search but this is going to cost you $200-$300. Or you can visit the local jurisdiction's courthouse website or physically go to the courthouse to look up liens. Tedious work though.

I hope this helps!

Sincerely,

Eric H.