All Forum Posts by: Leo B.

Hi Carol-

Thanks for replying!  I'll be sure to check out the DVD.

So it sounds like all liens (ie. mortgage, contractor, HOA) except liens from the government (ie. IRS liens) get wiped out after the sale.

I understand the 1 year period to challenge the sale until I can obtain title insurance.  I've read that some do the quiet title route.  What would this protect, where would I get this, and what's the average cost?

When you go to the County Recorders office, do you just ask them to perform a title search or is there something else you ask for?

Thanks again,

Leo

Question on CA tax deed sales.  If you purchase a property in a California tax deed sale, do all liens get wiped out upon sale of the property at the auction?

How do you perform your due diligence prior to purchase of at a tax deed sale?  Besides liens, what else do you look for?

@Dave Foster @Bill Exeter

Thank you both for the response.  It is very helpful.

If I decided to rehab and hold a property but could not locate a tenant and had to sell, is there a minimum amount of time required to hold the property before the property can be qualified for a 1031 exchange.

I had another 1031 question.  With the net proceeds from 1 home of $485K in the above example, are there any limitations to the type(s) of property I purchase from the net?  For example, would I be able to purchase 3 single family homes or 1 triplex with a purchase price of $485K?

@Patrick H.

Awesome!  Your living the dream working for yourself!  Best of luck and keep us posted on your transition from Corporate 9-5.

What's the max ltv on a primary residence?  You mentioned 50% of equity. If there is $300k in equity after a first mortgage, then that would allow for $150k line of credit? Credit score, dti, reserve amounts required?

Nice work!  Oh the joys of nailing down a motivated seller.  The seller was not only willing to come down on price but was really flexible on terms with seller financing.  How did you come across the seller in the first place?

@Steve Cook

Hi Steve-  Would you also be able to provide your PM reference to me as well?  I'm looking at the Indy market also.  Thanks! -Leo [email protected]

@Brian Eastman

Thanks Brian for clarifying.  This is very helpful.  How would a ROBS help defer taxes on the gains?  I've read that a ROBS account fees are higher than a solo plan.

I've contacted a number of non-recourse lenders.  The minimum down payments are between 30-40% and I am looking for alternatives that require a lower down payment (20%).  Hence, the post.

@Mark Nolan

 Thanks Mark for the input.  I was under the impression I would be exempt from UBIT when using a Solo 401K.  Is this if my business claimed under the solo plan is for flipping real estate?

Hi Ria.  Welcome to BP!

I had a 3/2 condo rental off of Tuolumne in Vallejo awhile back and received a decent rent for it and decent ROI. I haven't invested in Vallejo for quite some time and it is one of the few cities in CA that claimed bankruptcy during the downturn. There are pockets of the city that you want to stay away from but there are some decent areas also. Ultimately, if you are looking to buy and hold, no matter where you invest, make sure you or your PM screen the incoming tenant appropriately. A properly screened tenant will lead to a good tenant with on time rents, lower turnover, and someone that will hopefully take care of the place. Look up Krystle Property Management if you are looking for a good PM in that area. They should also be able to give you what market rent is for homes in a specific area in Vallejo.