All Forum Posts by: Jay Miller

Adrian,
I love your idea here. I was just wondering if you ever go an answer to the SEC issue? I would also like to know if you are still doing these type of deals and if so are they still working for you.

You can ask the HOA if they would take the land in lieu of the payment. If you don't want it that is. It doesn't heart to ask.

If they agree make sure you have it in writing that they will remove any derogatory credit reporting if any.

Sorry for the delay in my response. I have been away on a working holiday for the last two weeks.

I have had some homes that only needed a few hundred dollars in repairs all the way up to 6-7 thousand dollars. I have turned all of them in to profitable rentals or sold some of them off. It is not too hard to make a profit on such a small investment.

These homes are not in the best areas so you know what kind of tenants you get. It is a niche that I have fallen into but if works for me.

How do I find them so cheap. Well there are cheap homes all over this area. But to get the super cheap deals I network with anyone I know that might be able to offer a lead. There are mostly bankers, auctioneers, insurance agents, etc. I have people calling me on a regular basis. You also have to be able to ask for what you want and be willing to wait until you get it or there is no deal.

I find them once in a while but I do not know where you can buy twenty at a time. Sorry.

Last year I bought one house for $600 and cleaned the carpets, fixes one plumbing leak and painted the walls and rented it out for $375 in a month. Also I bought one house for $75 and one for $50. I wholelsaled the $75 house for $5500 and still have the $50 one. All in all I have purchased more that 20 housed for less than $4000 each and have them all rented. Most needed a lot of work though. Keep looking they are out there if you are in the right area. Good Luck.

About a year ago a local investor that got in over his head approached me to purchase a few or his properties. The prices were extremely high and I told him so. I did finally purchase one of them last summer which wasn't such a good deal but I worked out some creative terms that I could live with.

This investor continued to call me every so often trying to unload the last two of his properties. I told him he was too high and he said he could not go any lower due to loan payoff. Finally last month he called me and said the bank would be willing to accept a short sale offer on both of the properties. I called the banker to see what he had to say and submitted my offers.

To my surprise the bank accepted one of my offers and countered on the second. I told the banker that I was not interested in the counter offer but would go ahead with the accepted offer.

Here is the deal. 3 bedroom house in OK shape, good roof, vinyl sided, rented for $400 per month with tenant responsible for all maintenance on the property for entire lease term. My offer $2000. The outstanding loan was $12000+, back taxes of $1500, county appraised at $33000 (a little high). I went into closing with $2057 for the purchase and left with a check for $740 for rent proration and deposit. So my total cash into this free and clear property is $1267. The back taxes were paid a closing.

I guess the point of the story is you don't get anything unless you ask. The worst they can say is no. And every once in a while you get a yes. Get out there and make it happen.

You could try http://www.scriptlance.com/ or http://www.elance.com/ or other freelance sites. I have had some good stuff done from scriptlance.com.

Well everything worked out. The seller brought the new deed in late Monday and it was perfect.

I did not pay the seller costs just out of principle. This deal did not matter to me. If it did not go through I really did not care that much. I also was not worried about letting the seller create the deed because the title company was insuring title so it was their responsibility to verify the deed and make sure it was correct. If not then they would be on the hook for correcting it.

All in all it worked out so now I have another project to add to the list.

Its not a bad idea as long as your know exactly what you are buying. Go inspect the property and make sure you have a title report done by a professional.

Most eBay property is junk. It is in poor condition, has back taxes,liens, etc. I have looked at some properties that have nice pictures listed and when you go to the property the place is bombed out. The owners claim that they are out of state and have never seen the property.

I have sold a few properties on eBay and the transactions worked out just fine for both the buyer and myself.

Never buy site unseen.

No the bank I work with is only in this local area. That is the type of bank you should be looking for. Ones that only has a few branches in your local area. They also should be portfolio lenders meaning they keep their loans and do not sell them off.

In my area I have three banks like this to choose from. You can just call up a bank and talk to the lending department and ask them if they sell their loans or keep them. They will answer this question for you. It they say they sell them off move on to the next one. Once you find one that says they keep all of their loans then ask them if you could come it to discuss your business. Brian A. has a couple of blog posts that relate to how to aproach the small banks. The posts can be found at http://www.biggerpockets.com/blogs/1361. The posts are at the bottom of the list. You might find them useful.

The title company closer went over all of the requirements with him. I am sure he will have to do a few drafts. The title company is going to do all of the recording so I would assume they will check everything over to make sure it is correct but I will read and check myself. What a joke.