All Forum Posts by: Jason Krawitz

Thank you! 

Update! 

I've continued knocking on doors each week since this original post. Many of the doors I knocked on the first week are nearing their foreclosure auction dates. About a week or so ago, I made an offer on door # 1 from this post. No response. On Tuesday evening of this week, I received 2 calls and 2 texts from owner of door # 1. Long story short, they were ready to sell because their auction date was Monday 3/26. While they were ready to sell, they wanted to negotiate. I was willing to pay more than my initial offer. However, because I didn't do a good enough job prior to this point, I didn't have enough information to feel comfortable and confident proceeding. My initial offer was $106k. I had 3 exit strategies and all were winners. Yesterday, they texted me and said they had an offer from another investor for $115k and asked if I would counter-offer. I would/should have countered and paid up to $119k but didn't get clear enough information on exactly what they owed (from the banks vs. just from their guestimates) before this point. They sold (or at least entered contract) to the other investor while I was still asking questions. Next time, when I'm sitting in their living room for 2 hours, I'll do a better job of getting ALL of the information I need to act quickly and decisively. 

On another property from my original post (don't recall which door # it was), I had an appointment to walk-through the house and was stood up. The following Sunday, I was contacted by a wholesaler asking if I as interested in that same property. He had it under contract!!!!! I immediately called the owner who answered and asked what I could have done differently to have convinced him to work with me. He said it was 100% timing and had nothing to do with what I did/didn't do. 

It hurts knowing I just let my first potential deal(s) slip through my fingers but it's also encouraging to know I'm barking up the right trees. Thanks again for all the encouragement! Best of luck to all of you. 

Greetings BP folks. I have a property with 3 tenants on the lease. Only 2 are renewing. How would you suggest I handle the security deposit for the 1 tenant that is leaving? Would it be too simple to just refund 1/3 of the total deposit to her and move on? Should I make the other 2 tenants pay the portion of the deposit being refunded to the vacating tenant? 

Thanks!

Thank you all for the replies. Practically speaking, what would the first step be? (I'm a newb!) I have a good relationship established with the home-owner. Should I just do a 3-way call with the home-owner and the lenders and ask "hey... would you consider short-selling" ?  If the lender believes they will secure a bid @ auction that exceeds my offer, would they still consider accepting my offer? 

@Justin Hammond

2nd mortgage is with HUD from a debt restructuring plan the homeowner went through.

@Justin Hammond

Property needs 40k to flip or 25k to make into a rental. It’s livable as is but needs a full interior cosmetic plus exterior siding.

@Cathy Svercl

My understanding is that since the owner is in chapter 13 bankruptcy, a subject to is not an option. Correct?

@Patricia Steiner this is exactly the kind of response I was looking for. Thank you for taking the time to offer you detailed thoughts!

If I am managing funds/project for a friend's profit sharing plan, using those funds to pay Contractors on a rehab project owned by the profit sharing plan, am I legally exposed should something happen on the job-site? 

My role will be to open a checking account in my name DBA Book Keeper, arrange the sub-contractors contracted to do work for the profit sharing plan, and pay them from my checking account.

Would I be recognized as a GC and exposed if someone is injured on the job-site? 

Thanks!

Have any of you ever negotiated a short sale with HUD? I'm trying to help a home-owner stop their foreclosure. They owe 95k on their first mortgage and 25k on a second mortgage. Second mortgage is with HUD. The first is foreclosing with an auction date of 3/26. I'm wiling to buy the property for 105k. (15k less than total amount owed)

Any advice on how to convince HUD to accept 10k buyout of their 2nd position to make this deal happen before 3/26? My understanding is that HUD stands to lose all of their interest in the property if it does go to auction. Is that correct? If the house sells at auction on 3/26 will the 2nd position lender get anything?

Any advice? Experience? Thoughts? Thanks!