All Forum Posts by: Kevin Martin

@Brandon Temples I've just started to research this investment strategy so Im not really sure what I need to be concerned about mostly besides the not knowing the full condition of the property before you buy. Looks like a tax deed squashes alot of previous liens but there still may be certain liens that stay with the property? Do most investors run a title a search before they buy or is that just part of the risk involved? Also, I do understand the concept of a quiet title to get clear marketable title but why would a buy and hold investor care? 

@Jay Hinrichs

I'm sure there is an infinite amount of situations to worry about getting sued for that are completely out of our control but I do get your point. Having good insurance to cover these things is your best line of defense. An example for personal liability would be driving your car. The car insurance will only cover you up to your max limits then if there are any damages beyond that amount you are personally liable right? Another example in my situation is being a licensed engineer and being an owner of the company. On every project I stamp I have my personal license(my name) attached to it even if I am technically an employee of the company and protected under our E&O policy.

However, if you do have significant assets and others suspect you do (because you are a big bad real estate investor) does this increase your liability to some point? Kind of like the people who like to go to the big box stores to slip and fall to get paid off

looks like a typical push pier/pin pile with a grouted core. Plenty strong enough for residential...should be between 1k to 2k per pier depending on how many you need, access, and other factors. Could be a bit less or more too; just depends on local standards and practices.

Have to hit the pavement and start talking to GC’s. I used to be an active GC and I wouldn’t partner with someone I didn’t know off the street. You might need to start off with hiring a GC for a few projects and build a good business relationship so you know he does good work and he knows you pay and are serious. Have to build some level of trust and set responsibility in a good partnership that goes both ways. Good luck!

So it doesn't really matter what type of asset protection you have; you will get named personally in a law suite regardless. Whether you have a LLC, trust, Corp, ect. It doesn't prevent you from personally getting named right? Sounds like being a ghost (trust?) would be the first line of defense then just make sure you are insured right?

@Carolyn Morales thanks for the insight. Been looking at the few past months of tax deed sales and it looks like you can pick up some “decent” properties. Probably have to deal with a lot of competition and obviously you don’t know the current condition, but for the sale prices they are going for as long as it’s not 100 years old and falling down it might be worth the risk. Besides buying a tear down for too much on tax deed I wonder what are the other big risks to look out for? Hope your motorcycle crisis gets resolved smoothly and quickly!

unless you have volume you will have a tough time finding quality subs that can get it done quickly. Maybe you can try one of the bigger plumbing/electrical companies that typically do service calls. They are going to charge you hourly but if the job isn’t too big and you provide the fixtures, you can get the work done quickly for not too much more. Tried it once and it worked out ok, I paid about 50% more but got it done within a week. Time is money!

Looking into tax deed sales in Jacksonville to acquire properties for long term rentals. Have no experience in tax deeds but do have experience with rentals, flipping, and new construction. The MLS is depressing right now and it's tough to buy properties from wholesalers when I just don't think the value is right. Anybody have some words of advice on whether this is a good approach to finding buy and hold properties at a good value? Obviously this is a very general question about tax deeds but any feedback would be much appreciated.

In a perfect world: (in no particular order): 

Square/rectangular shape, 1-story, open floor plan, lower pitched roof fully trussed, slab on grade monolithic foundation, 24 o.c framing everywhere, T1-11 plyw. siding, minimal windows, minimal doors, minimal trim, minimum code electrical/HVAC/plumbing, carpet everywhere, avoid tile, laminate countertops, Home Depot cabinets, basic fixtures and appliances, no fencing, no trees or old stumps, minimize landscaping, minimize driveways and walkways, forget pavers, cleared flat lot, no fill, utility hookups available in front of house and best case they are aleady tapped, inspectors are easy to work with and pass everything the 1st time, subs show up when they need to and actually care. Neighbors are nice, nothing gets stolen or broken, you sell your spec pre construction, you own the land, you can fund your own construction, get a C.O. in 90 days or less and close with your buyer the same day, no warranty calls ever! 

I'm sure there are a lot of other items missing but this is pretty much the cheapest and easiest house anyone could build. (Good luck selling this beauty!)

So don't buy anything because we are at the top of the market? Yes if we knew that then for sure hide in a whole with all your cash and wait till the dust settles so you can gobble up houses for pennies. But is buying a house for 40-50k and renting it out for $800-900 now not a good deal anymore because you could of got It for $15-25k in 2011?