All Forum Posts by: Helen Zhang

Thanks for all the help everyone! 

I felt much safer on my investment now.

For everyone's information, I'm purchasing a property on auction.com without seeing the property. However, I did pay someone 30 bucks on craigslist to take pictures of the property just to be sure this property isn't a condemned property. 

@Account Closed You all seems to be very experienced in Texas Area. Would you happens to recommend a contractor to me? The type of contractor that can take care of all the remodeling without me watching him? 

I have contractors that I trust in LA, but it is not very realistic to ship them to Texas. Any advice would be helpful. I have been thinking about using turnkey property management (such as MemphisInvest) but I know the cost is going to be a lot higher. Let me know what are your thoughts about it. 

Thanks, god I love BP community. 

Helen Z

@Account Closed, Thanks for your attention. I have send you a private connection. 

Hi @Greg

Thank you very much for the response. The property has been vacant and it is being appraised same value as all other properties in the neighborhood. 

However, I did notice on the tax bill stated: 

Because of action by the Texas Legislature increasing the amount of the residence homestead exemption for school districts, your tax bill is $.00 less than it would have been.

and on the tax due, it also stated:

What does "Frozen" mean? I started to worry only because it seems like this property has been vacant for a very long time and yet there are people living in this neighborhood still. Anything shady that you think I should know?

Helen Z

Hello BP community,

I am in the process of purchasing a property in Dallas Texas, and it is a REO property.

I am cleared with title insurance and received title commitment. However, when I looked up the tax history on this property, it worries me a little bit. 

So how is it possible that wells fargo is only paying 1.17 cents on the property since 2015? Does anyone have an explanation for this?

Thanks,

Helen Z

Like previous comments stated, the 2% rules seems only applying to the problematic market. 

Rental vacancy is a much bigger problem compare to the 2% rule. If vacancy rate is 30%, then even the property returns 5% per month, I would not purchase that rental property. Here are the rules that I go by:

Rent Vacancy < 6%  ---> 0.8 % rule

Rent Vacancy between 6% to 8% ---> 1% rule

Any property below 0.8% rule is not being considered. Any property that has vacancy rate higher than 8% is also not being considered. 

This website may help you find out vacancy rate: http://www.bestplaces.net/

Good Luck to your research =) 

Hi @Mark H.

Thanks for the feedback. Surprisingly, the property I'm purchasing is actually vacant!

I paid someone on craigslist 30 dollars and asked him to drive by take some photos for me. And he took a picture of the door post mentioned that it was vacant. Although this doesn't mean there is no intentional damage before the previous tenants left, at least there will be no hassle for cash and keys. I'm slightly happier. 

In the case when the owner filed bankruptcy, what does it mean for your investor friend?

I have confirmed with auction.com that the property is owned by Wells Fargo bank. 

Thanks for your recommendations.

Helen

@Peter Chevalier, Interestingly, your contract agent has just replied to me minutes after I reached out to you. I wonder if this is related. 

@Peter Chevalier, I am experiencing similar issues as @James Bell. 

I had my attorney read over the contract and signed within 24 hours. However, it is been for almost 3 days now and no contract agent has reached out to me. 

Auction.com phone line is consistently busy, and I am unable to reach out to any agent if I call any time after 8am. So I have decided to wake up early at 6am every morning to reach out to your customer service. I am proactive, and I am hoping with my productiveness I would be able to speak to your contract agent. 

Unfortunately, no luck. I have been leaving voice mail, email, and your customer service have been posting notes to your contract agent, I still have not received any return phone call/email from your contract agent. 

I have also reached out to the escrow company and they have mentioned they don't even see my property is listed as a property that they should provide service for. 

Can you advice me what I should do next? I would really appreciate your help.

Thanks,

Helen Z

@Daniel Ahern I'm so glad to hear that. Please do keep me updated with good PMs. 

@Todd Plambeck I had a title company to do title research for me with commitment for title insurance.

@Wayne Brooks How are you able to tell whether it is a REO property or Trustee property? My way to identify is to read the contract. A REO property would grant warrantee deed as always, and a trustee property will grant either warrantee deed, special warrantee deed, or quitclaim deed. Please educate me.

I am in the process of purchasing my first trustee sale. (This isn't my first property, but it is my first trustee sale). The property is located in Dallas, Texas. I have won the auction, signed the contract, and wired deposit. I'm prepared for the following horror stories on the list:

1. Bank denies my offer even though I am the winner.

Less likely but possible, I read trustee minimum acceptance number is exactly what I have offered.

2. Getting a quitclaim instead of a warranty deed.

Less likely but possible, I have performed preliminary title report and obtained commitment for title insurance.

3. Bank denies me for random reasons and I am unable to get back my deposit.

4. Unable to complete transaction on time.

Less likely since I am doing cash transaction.

5. Cash for keys fails

6. Eviction Fails

Is this even possible in Texas? 

7. Occupying tenants destroys house completely.

8. House burns down before I take it over

Knock on wood but what if this happens, then what? 

9. Contractors are bad

Yes I need recommendations for contractors in Dallas, please!

10. Property Managers are bad

Yes I need recommendations for property manager in Dallas.

What other horror stories that I should prepare for that I should add onto the preparation list from an auction.com trustee sale?