All Forum Posts by: Maugno M.

You are wholesaling. What you are doing is perfectly legal in Texas. Idk about Florida, but what you are doing reassigning contracts shouldn't be illegal. 

14k is an inflated price. I'd be able to fix that stuff here in Texas for less that $1500 easy. And that is giving a high number.

This guy John is hilarious. Chill out. Move on. Nobody likes people like you honestly. Make another deal go through period. I am doing just that. I am stuck in a debt position right now, but i am not crying about it. I am proactively looking for 1 or 2 real estate deals that can help me out. You should TOO !!!!

Hello BiggerPockets ! I am writing this post with the out-most trust in this community and want to get different points of views on my financial situation. I love this platform and have been following it since 2015 as i have came down the real estate investing world.

In 2014, when i was only 22, i bought my first property at a tax sale auction. 2 acres and a mobile home. about 8 months later in the summer of 2015, i flipped it and made 10k profit. I instantly fell in love with real estate.  I made a big mistake at this time of my life though, i got into buying and selling cars. I got my license for salvage cars, and started flipping cars. All went well for the first couple cars but i bought one vehicle that i put alot of money into and ended up selling for a huge loss. About 3k plus of a loss. I stopped selling cars at that point.
that same summer in 2015, i also bought a vacant lot from the court house steps which i flipped. I ended up getting a 2008 Gmc crewcab out this deal. 
I also bought a really run down brick home for only like 3k with a quitclaim deed. I made the mistake of holding on to it and fixing some things because i thought i was going to move into it eventually. I held on to this till this summer 2017 which i ended up selling to my Girlfriends dad for a small profit.
In the beginning of 2016, i bought 6 acres for like 10k. I got a really cheap deal because it was really messy and i think other investors overlooked it. I was initially gonna flip it, but i ended up developing it,getting utilities in there and putting in 2 mobile homes. I just got done developing in October/November of 2017. I just got my first two tenants and they will be moving in January 1st. I already have their first months rent and deposits. One mobile home will rent for 600/month and the other 550/month.
I used collateral ( 2004 bmw/2008 gmc) to get a personal loan this Past October for $25,000 to purchase a SFR on auction.com. I love the property. The tax district has it appraised at like 57k but i know with fixing, it can be worth a whole lot more. It is 1300 square feet home but it also has a detached apartment that is like 700-800square feet with meter and utilities of its own. I plan on living in the home and renting out the apartment or vice versa.I have already started work on the home. I completely cleaned out the mess it had and looks a whole lot better but it still needs a lot of work inside and money to make it appraise high. I dont have enough money to finish this rehab at this point :/

And, i have racked up a lot of debt i don't even know how !! I have 5 credit cards and i have a balance of about $11,000 i just added them up.  one of them is a home depot card that i use to do some repairs on properties. But thats only 2k out of all of them.
Over the course of all this I went to college. I graduated with my bachelors in business in  May of 2016. I owe $30,000 now in student loans. Maybe i shouldn't have even gone to school, most people at my job dont even have degrees.

I owe $25,000 on a personal loan which i mentioned i used to purchase the property i just got. It is just an interest only loan for the first year, which i pay only interest and after 1 year i have to revisit this if i plan to extend the term but i have to pay down atleast 5k in the principle to extend the term after one year.

Two weeks ago, i got engaged to my girlfriend of 4 years. It was time. I wanted the wedding to be in the summer of 2019. She says that is too long and possibly wants it September of 2018.

I am 25 years old. I do not have any kids. I have lived with my parents all my life up until I finished the mobile homes on the land which i ended up moving into but now have to move out since i rented them.
I kinda want to do the BRRRR strategy with the house i just bought and pay off my cards and pay for the wedding. But at the same time i feel like the BRRRR strategy is for growing my business and acquiring more homes not wasting the money on debt.
Now im feeling like SELL IT ALL, and F*** it. Get a big cash pile,pay my debt and start over acquiring real estate.

I live very frugal. I am very cheap. I like good stuff and looking good but i dont spend heavily. i TRY to watch every dollar that goes out but it is very hard with so many payments. I bought the BMW when i was 19 before i started with housing. I know it was a mistake that thing has caused me nothing but expenses. But well now i was able to use it as collateral for my last home purchase.
I have worked all my life since i was a freshman in highschool. Literally i have had about 15 jobs in the course of 10-11 years. I have busted my butt for what i have but i yet to see  a big savings account under my name. i currently probably have about 2k to my name.  I think my debt is over 63k right now. I currently love my job and make fairly decent money. I do commercial sales for our local cable company. While i was going to school i was actually installing cable for them at peoples homes, but as soon as i graduated i went straight into the actual company and into business sales. I work monday through friday 8to5 so its not bad. I made this year about 55k gross and 40k take home. Weekends i work at my land or house.

What have i done wrong? why am i not seeing my savings. what is the advice you all would give me to move forward? Should i sell the properties, should i keep and see how the rent will turn out? Possible BRRRR strategies? what would you do in my situation? I know there are alot of successful people on here and i aspire to be one. Any advice would be greatly appreciated.

Sorry for the long post.

Maugno.

Yes the info Tom just stated will be used by the title companies to do the search. I am sure they also have their own other tools they use as well. They will do the work for you and it's probably more trusty worthy. Ive always done my own searches just using the public records from the county and Tax accessor. Only reason I don't use a title company is because of the expense associated with it. For a big purchase price it will probably be better. Tom ... do you how how to check for IRS liens ? Or would those be filed on the county clerk as well ? Good luck with your purchase from auction.com. I just closed on a house with them last week. I went through there title company, Servicelink, and closed in about 3 weeks pushing 4. So that was a good experience despite the negative reviews people have on here of them. I received a special warranty deed. So I'm pleased. Hopefully everything going forward is good as well once I sell.

You over here talking about 1031's and idk what else, yet you haven't even done your first deal. Worry about finding a Deal FIRST, making a PROFIT and then you can come up with ways to defer your taxes. Do it, don't just talk. Yeah you can start with 10k even if it's a loan. Hell yeah. I did. Payed it back. Kept my profit. And you repeat. But I'm in TX, RE isn't as expensive compared to other places.

Hell yeah buddy that's a good CASH offer. I always lowball that's the only way to get deals what are you talking about. If I'm putting up cash I woulda offered you 140k or less because it's cash !

I buy tax forclosures here in Texas.y experience with these is you buy just like that from the county. You get no title insurance or any of that mess. You get it via Sheriffs Deed. "As is, where is, however it is. On a non homestead property , right of redemption is 6 months. Homestead properties get 2 years. Even after the right of reedemption is over, some title companies won't insure because of heirs that supposedly can have a claim. It'll take about two to three years of you owning it for a title company to insure. The last property I sold I bought from tax sale , had a six month reedemption, I sold it on month 9 and title company wouldn't give full title insurance to my buyer. They gave her title insurance but with an exemption on "heirs" Buyer still took it because they were paying cash. They didn't care.

@Account Closed Yes sir great advice. Thank you for sharing your experience it just makes me a bit more confident in the process. i think im doing just that and hope for the best.

@Jack Bobeck That is a great time to close ! I've seen other posts on here that say that Servicelink took 9months to close. What a horror story. 

I'm thinkin of just doing that and going with auction.com's title company.