All Forum Posts by: Ken M.

It's time to talk to the closing attorney to see what your options are. If you already have a note & mortgage, I'm not sure what value going for a second promissory note would be. It is likely your best solution will be a foreclosure or deed in lieu. Enforcing the "waste" clause (neglect or destruction of part of the asset backing the note will simply lead to foreclosure anyway).

1 Vote

Destin, Florida

Quote from @Faris Wright:

Do you believe mortgage rate will start to decrease? Do you believe home prices will increase? Are we expecting a recession? I would love to hear everyone's thoughts!

I don't think mortgage rates are the problem. People carry too much debt and even if the debt was forgiven or paid off, incomes don't match affordability. This is a long term problem not likely to be resolved anytime soon. Home prices can go as high as they want, but if people can't afford them, they won't sell. The real price is determined by the market. What a willing buyer can afford to pay to a willing seller.

1 Vote

Raleigh, North Carolina

Quote from @John Perkins:

Investment Info:

Single-family residence fix & flip investment in Success.

Purchase price: $55,000
Cash invested: $25,000
Sale price: $119,000

Bought at around $50k
Fixed up at around $20k
Sold at $120k

What made you interested in investing in this type of deal?

Fix & Flip opportunity.

How did you find this deal and how did you negotiate it?

Word of Mouth.

How did you finance this deal?

JV partners.

How did you add value to the deal?

Renovated

Good job! Love to see success.

1 Vote

Quote from @Elaine Ericson:

I sold a mobile home giving Owner Financing (OF) (never again will I offer OF). The buyer had the mobile home demolished. Crazy I know. She is now in arrears 3 months and has agreed to deed the land back to me and take a Promissory Note for the balance 30K. I think this arrangement is better than nothing or me taking her to court to only get the land back. I know she can stop paying on the Promissory Note as it attaches to nothing. Any ideas appreciated? She is a real estate agent but rents so no property to place a lien on.

Need to know a couple of more details first: Is/was the mobile personal property or real property? What was the value of the mobile? Did you have a note and mortgage or just a sale agreement? Did you include a clause for "waste"? Why doesn't the note cover the land?

Your answer is first in the paperwork you two agreed to, then in any options available if no paperwork was done.

If the mobile was not "legally" tied to the ground, you should have two contracts. One for the mobile and one for the land. They are treated differently.

1 Vote

Destin, Florida

Quote from @Sophanara Khoeun:

As titled, I am new to the property rental scene. I am ready and will be starting with property number one sometime, hopefully, quarter one of 2025 with a possibly 2 bedroom and 1 bathroom single family home; as this is within my current budget. The goal is to build a portfolio along the way.
1. I found a house that I like to purchase in a great neighborhood and the exterior looks great for a 1922 stick built house. The problem is the foundation is sinking, the outdated polybutylene pipe is leaking in the crawl space and the electrical is outdated. The interior is decent and also requires updating . I have two questions that I would like to ask the community:

1. Is there a point of contact person/business that handles all home investor concerns (general contractor, engineer, etc.) OR do you call each individual specialist (plumber, electrician, mold expert, etc.)?

And

2. With a 9-5 job too busy to catch a breather, being that it will be my first rental property would you recommend finding a property management company to oversee the investment property OR create a profile on a property management platform, I am thinking about Avail unless there is a better platform, to collect rent and hire specialist as issues arise from tenants?

I have many questions that need answers so I will likely be a regular here in this chat. Thank you all in advance!

Foundations actually can be fixed. Doing so usually cracks the walls and can make door jambs out of alignment. The interior will need to be repaired and repainted.
I've done several 1900 - 1920's and while they usually have good bones, the electrical can be underpowered for today's needs, and the water lines can be corroded galvanized or even lead. Not good things. You have things like gutters and downspouts to worry about replacing. You have to consider insulation and heating/cooling too. Usually there are rats nests in the attic that have to be dealt with. You may have asbestos in the ceiling, floors or siding and you may have lead in the paint. It all depends on how the house was treated before you. I would definitely have an inspection done first. If you want to keep the architectural attractiveness of the house, it usually runs a bit more expensive.

1 Vote

Greensboro, North Carolina

Quote from @Julie Muse:

Investment Info:

Single-family residence wholesale investment.

Purchase price: $100,000
Sale price: $147,000

Contributors:
Peter Vekselman

Partner Driven and Debra Cottom teamed up to purchase a home at Bayport Dr, Lancaster, TX, on 12/10/2024, for $100,000. With no renovations needed, we leveraged strategic pricing and marketing to sell it the same day for $147,000. This successful deal highlighted our ability to act quickly and capitalize on market-ready opportunities, delivering impressive results with speed and efficiency.

What made you interested in investing in this type of deal?

The Bayport Dr deal intrigued us due to its market-ready condition, favorable purchase price, and high potential for profit with minimal effort. The opportunity to collaborate with Debra Cottom on a deal requiring no renovations made it a perfect fit for a swift and profitable transaction.

How did you find this deal and how did you negotiate it?

Partner Driven identified the Bayport Dr property through our extensive network and partnerships. With Debra's expertise and keen negotiation skills, we secured the home for $100,000, ensuring it was positioned for a profitable and quick resale.

How did you finance this deal?

This deal was financed using Partner Driven’s capital resources, allowing for a seamless and efficient transaction. Our established process provided the financial backing to secure the property, enabling Debra to focus on the resale strategy.

How did you add value to the deal?

Partner Driven’s marketing expertise and network connections were key to this deal’s success. By positioning the property effectively and highlighting its strengths, we attracted motivated buyers quickly, ensuring a successful sale without the need for renovations.

What was the outcome?

The Bayport Dr deal closed successfully on the same day of purchase, selling for $147,000. This transaction demonstrated the strength of our partnership with Debra Cottom and our ability to capitalize on quick-turnaround opportunities.

Lessons learned? Challenges?

This deal reinforced the importance of recognizing market-ready opportunities and leveraging strategic partnerships. By acting quickly and aligning efforts with Debra’s expertise, we achieved success with minimal challenges, showcasing the power of collaboration and decisive action.

Nice work. Love it when people succeed.

0 Votes

Quote from @M Amin:

Does anyone have a good inspector recommendation in Chicago northwest suburb ?

A good commercial real estate agent should be able to point you to one. Don't leave out scoping the sewer lines. That' a very costly mistake.

0 Votes

Chicago, Illinois

Quote from @Gene Jung:

Hi,

Assume there is no cost for mortgage requesting for my lender. Assume my marginal income tax bracket is very high, and mortgage rate is 5.25%. If I have lump-sum free cash, should I just apply it to my mortgage to recast so that my monthly goes lower? Or should I just put them into stock market? If mortgage rate were < 3.5%, then there is no need for recasting...but 5.25 seems like a border line. To beat 5.25% mortgage rate....the corresponding, offsetting stock market return would be at least double that...

It depends on what you think the future brings. Typically real estate is long term, has tax write off advantages and you can borrow money tax free to invest in other opportunities. The stock market is at an all time high. Does that mean it's on a roll and will go a lot higher or is it likely to do what it always does and correct? I would run numbers in various scenarios over at least a 5 year time line. Don't leave out tax liability.

1 Vote

Foreclosures usually have a lot of "hair" that goes with them. Like deferred maintenance, (bad roof, worn out water heater/AC Unit, warped flooring, water damage) etc, unpaid utilities, unpaid taxes, a second loan, unpaid HOA fees, a bad pool, bad reputation, sometimes squatters, sometimes they were drug houses, and so on. The problem is that you don't get an opportunity to do an inspection before you buy.

If you buy pre-sale from the owner, you have arrears to bring current, getting the owner to move after you have solved their problem and taken the pressure off, along with the previously listed concerns. You can wind up with title issues if you are not careful. Make sure you buy it low enough to make it worth the trouble. If you buy it too low, in some jurisdictions they will call it "equity skimming" which is illegal.

It can be very profitable, I've done many, but you really need to know what you are doing.

0 Votes

Westchester County, New York

Quote from @Jeff S.:

This preliminary injunction has been stayed. The CTA is reinstated, and we are back to being required to register.

According to Doss Law:

As of December 23, 2024, the U.S. Court of Appeals for the Fifth Circuit issued a stay of the nationwide preliminary injunction previously granted by the U.S. District Court for the Eastern District of Texas in the case of Texas Top Cop Shop, Inc., et al. v. Garland, et al., No. 4:24-cv-00478 (E.D. Tex.). This decision effectively reinstates the Corporate Transparency Act (CTA) and its Beneficial Ownership Information (BOI) reporting requirements nationwide, pending the Department of the Treasury’s appeal resolution.

Click here for the full article which includes the new reporting deadlines.

Good catch. Appreciate it.

1 Vote

All Forum Posts by: Ken M.

Ken M. has started 66 posts and replied 891 times.

Post: Promissory Note - how to secure or any ideas to help in this situation?

Post: Any housing prediction for 2025?

Post: 1 of my Properties

Post: Promissory Note - how to secure or any ideas to help in this situation?

Post: New to Investing: Repairman? & Hire or Not to Hire a Property Management Company

Post: Quick Turnaround Triumph: Bayport Drive Success in Lancaster, TX!

Post: Apartment building inspector recommendation

Post: Mortgage recasting ...when to do

Post: Would like Suggestions on Foreclosure Buying

Post: Corporate Transparency Act (CTA) under PRELIMINARY INJUNCTION