All Forum Posts by: Jimmy H.

@Brandon Sturgill This is still ongoing.  The seller is mulling over the proposal so we shall see.

@Eric Tait That's an option I've been considering but it still all comes down to the fact that in the event I can't force a sale and have to foreclose, the cost and time would've been troublesome.  So getting title is still the number 1 focus and if it fails then I'll have to find other ways to go about it.

@Jesse T.  Yes I'm in contact with a real estate attorney to figure out what's the best structure if the owner still wants to keep title.

@Christopher Telles I agree there's the risks if I don't have title that's why I'm working hard to get it.  I see that you're in Irvine, CA and here in Houston the prices and margin would be a different ball game from what you probably are used to.  If I can get control of title there will be enough margin to make it a decent deal I believe.

@Kevin Wood The agreement would be all good and all but it still comes down to the cost of foreclosure and holding time should it comes to that since I legally can't force a sale without the title.

The negotiation is still on going and I'll see how it goes from here ... but I am trying to find a way to make this deal work since besides the profit it also serves as good experiences for these types of situations.

That's why I am still going to negotiate for title ... having that control of title make things so much easier.

@Cory Boren The Deed of Trust you proposed can only foreclose, but can't effectively "Force" the sale, right?  I can't think of something that can force a sale should he backs out, can you?  I would much rather sell the finished product than foreclose though. 

For the REIs and realtors in Houston, have you noticed, or do you know if the market values for the areas and neighborhoods where homes that were flooded were negatively affected?  Area's like the Galleria, Meyerland, the Energy Corridor etc.?

I would like to know if that is something to strongly account for if doing comps in those areas with sales prior to the Memorial Day flood.

Adding the keyword Houston for inputs from fellow Houston REIs.

@Linda Weygant I already have a licensed GC that I work with that will be taking on this rehab, so I won't be the GC in this mid to upper end deal.  But yeah I agree with you that working on something I do not own can be tricky.  Hence my preference is to get the property under contract, but if that is not something that can be done, then I would like to see if there are other creative ways to do this other than to just walk away.

@Brandon Sturgill That is not what I said I would do ... I am just asking for options and solutions that I can employ to protect my interest from undesirable things that can happen (such as those you mentioned.)  

Obviously I would want to take title, but in the event that is not an option, I am seeking to see if there are other options someone had used before to combat this scenario.

Valid point @Larry Turowski .  Basically if the owner changes his mind and decided not to sell anymore after seeing the beautiful transformation made, the only recourse I have is a mechanical lien against it and that would only prevent him from selling himself.  

What you're saying is that I can't even foreclose on it to force a sale. What other solutions can anyone think of (besides the POA suggestion.)

It's a seller's market.