All Forum Posts by: Jim Viens

A little off-topic but the most interesting legal description I ever came across working in the title industry was a metes-and-bounds description (not platted/subdivided) that included a call-out along the lines of "...then east to the big tree where Billy Bob killed a bear...."

You're correct. IF an owner's title policy was purchased AND it didn't show the outstanding taxes/lien then the title company would be on the hook for it. And if the lien was foreclosed and the owner lost the property because of the error then the title company would be obligated to reimburse the owner for the face-value of the policy (typically the purchase price). BUT if the lien was there and just wasn't pointed out to the buyer by the closing agent or the buyer just wasn't paying attention then the buyer has to pay it or face losing the property.

You could also look into creative ideas like owner-financing or lease-option (if the place is in good enough shape).

Another huge consideration before buying is whether or not the HOA will allow owners to rent properties in that development.

Is this an historical neighborhood? I'm guessing that may be the only case where that much effort could make a difference in a deal. That being said...if you just enjoy the research as a hobby then go for it! Side-note...I geek out on historical research like that too. :) 

@Walt Payne is dead-on. One of the first records you could check is the plat map of the subdivision. It should have the developer's name on it.

Talk to either an appraiser or a really good real estate agent that knows the area inside-out. They should be able to give you comps in the area and (especially the appraiser) should be able to give a ballpark figure for what it would be worth with the improvements you're planning to make.

Seems awfully skinny. Not much room for "uh-oh" kinds of expenses one always seems to run across in rehabs. You also have to account for holding costs during the rehab (taxes, utilities, insurance, etc). Figure in for that and then if the house sells for even 10% lower than you expect and you're potentially looking at a net loss. That's probably why your instinct is to pass on it.

Sweet! I'm just getting started wholesaling myself. I just got word from the company doing my yellow letters that my order is printing. Doing 1000 letters in an area of south Kansas City going out over 3 weeks. Getting anxious to start answering calls! I'm also sending some out myself manually on the Kansas side (where I live) as I'm having to compile my own list (can't buy lists for Kansas).

I'd reach out to a good real estate agent (maybe get a referral from an agent you already work with) that works in that area to make sure of the comps and market conditions. They should know the area pretty well to get you some good info.