All Forum Posts by: Ryan Hoffman

Hey everyone, I have a question about an individual I met who says they he "owns" over 200+ properties by way of Quit Claim deeds via pre-foreclosure sellers. 

In other words, home owners facing foreclosure, $1 deed the property to his LLC and he now has the controlling interest of the property even though the bank has not begun the foreclosure proceedings. He then cleans up the properties, and rents them out.

His business model is built around the acknowledgement that at some point, the bank will begin the foreclosure proceedings, and his interest in the property will be lost when the home sells. 

Now I understand that a QC deed is not clear title, since the bank has an outstanding mortgage on the property. This guy does not have to pay the mortgage obviously, but what he did tell me that was interesting was, he claims he doesn't have to pay the taxes on the property either. 

He says that the bank continues to pay the taxes on the property through the pre-foreclosure/foreclosure process. He also says that his tenants on these buildings are never put out when the home is foreclosed because in some cases, the bank will pay the tenants $3,000 to move out when the foreclosure process is finalized. 

Now, I understand the meaning of the QC deed, and understand that the new "buyer" is not held liable for the mortgage, but how can he be able to avoid paying the taxes too? And getting the bank to cater to his tenants at the end for $3,000?

Basically his business model has him in control of 200+ properties using QC deeds as the instrument. He cleans out the homes, and advertises them for rent, making easy money without paying a mortgage. When the bank foreclosures and lists the home for sale, he just walks away.

But saying the bank is paying the taxes? No other repercussions? Seems like a cash cow business that is too easy. 

He was looking to hire a property manager for some of these homes, and one thing that stuck out to me was part of the job duties states he expects the property manager is to "keep him up to date on the foreclosure process"

Can this be a true depiction of his business model? If so, how could he possibly avoid paying the taxes? And what happens when the bank forecloses? His deed goes away?

@Kadeem Howell, North Central Troy, better known as Lansingburgh, has been performing decent over the past 2 years. Right now, average sale prices are around $115,000 for single family, and there are a lot of multi-family (mostly 2-Fam) homes as well. The Burgh is actually a big geographic area, and has had it's ups and downs over the past decade with a generational swing and uptick in crime. Overall through, they had a solid 2016 campaign, and this year is performing average to good as well.

Let me know if you want some PM help. I shoot Prof Photog. and Prof Videos plus Prob Websites, all in house, by me. Tru Tour Realty LLC