All Forum Posts by: Katharine Chartrand

A nice family living in an $800K home, now faces eviction and homelessness by heartless landlord ... unlikely what is going on here. These people are not dealing with something.

Whatever the facts and circumstances of this situation, kick these people out. 

When they tell you they have nowhere to go, recommend the local Motel 6. 

And then direct the incredible charity and compassion you've been blessed with to those who actually need it.

http://malalafund.org/

Giving to those in NEED is wonderful thing.

>KNC<

@Philip Williams 

great job

@Tom Krol 

This is a great post.  Really gives a sense of what it takes to work with motivated sellers.  They are in crisis. You have to meet them where they are, although you are not in crisis.

They took the full value. ?!?

>KNC<

@Nick G. I haven't done the credit card thing (neat trick).  But I have shown them my current retirement accounts even though they aren't eligible or what I intended to use.  It was just a convenient way to show the bank with one statement the number they wanted.

The proof of funds for REO's is a pretty soft requirement.

@Grant Kemp 

Thanks.  I did miss the deposit. 

I currently do fix and flips. Comparatively speaking, subject to's are money for nothing even with a 7K marketing investment.  

Looking forward to talking with you as I get into this.

>KNC<

@Jay Hinrichs 

thanks, it's very helpful to understand the ways this may play out. 

the bottom line is that, at this point, i can't count on either owning the property outright or getting my funds back until 30 days AFTER the judge approves the sale.   the investor may or may not seek to redeem the rights up to that point. i can't get them at this point.

and who knows when the judge will approve the sale.

now, of course, i regret not approaching the owner for the redemption rights prior to the sale being approved. 

>KNC<

I bought a house at a foreclosure auction on May 27th.  I decided not to contact the foreclosed upon owner (who lives in the house) about moving and redemption rights before the district court approved the sale. 

The NM first district court has still not approved the sale.  Yes, it's been 1 month and 2 days.  $160K sitting in escrow at the district court.  No action by the judge.

An investor called me last week to tell me he had approached the foreclosed upon owner and purchased the right of redemption.  So I approached the foreclosed upon owner this week to confirm that she had sold her right of redemption... she confirmed.

But the investor has not filed the petition for redemption.

And of course the court has not approved the sale.

I am bummed about losing the deal.  I am wondering if I still have any angle here, or do I just have to wait till the investor calls the right of redemption and let him have the house?

The second issue is that I have $160K sitting in escrow in District court waiting on a judge to do something... and I don't when that is going to be. And then, presumably, this investor has 30 days from the judge approving the order to redeem.   I have a considerable amount of cash tied up for possibly more than 2 months.  Is there anything I might do to accelerate the release of the funds?  

And when does the 10% interest payment on these funds begin?  That's actually a meaningful silver lining.  Does it begin from the date of the auction, or the date the judge approved the sale.

I did run into a restriction on moving a Roth IRA into a roth solo 401K. There was no restriction moving a traditional IRA into a regular solo 401K. Not sure about SDIRA's but it is something to get clarified.

I love the money in my 401K because it grows tax free. I maximize the funds in my 401K.  If you are making a six figure income and you only have 20K in the 401K, you are not putting away enough, IMO.  You should be putting a lot MORE in there if you are planning to be self-employed in 5 years.  When you leave the employer you can move those funds to a solo 401K at that time and invest it in your real estate activity.

Thinking in terms of a 5 year plan is really smart. Think ahead about what a well stocked 401K can do for you in 5 years.  In the meantime, as @Russell Ponce suggests, what will be most valuable to you in 5 years is experience.  Hook up with people that do this.  There are some very low capital ways to get into real estate that will allow you to learn. 

I am just finished my first year seriously investing. With the help of strong relationships with people who know what they are doing and some luck, I made some money, I know a lot more than when I started and I see a path to a decent return from this activity.  There is a lot of learning before you really make any money to understand what type of activity suits your risk tolerance and skills.