All Forum Posts by: Matthew B.

We just closed this past week on two duplexes in Eustis, FL. These are our first multi-family properties, so we're pretty excited. We bought them from Fannie Mae through HomePath, which a great story in itself. 

They were originally listed for around $120,000 each about a year ago. The funny thing was, the listing prices were $10,000 apart and they were listed with different listing agents, even though the properties are identical and share a common area. Fannie Mae slowly lowered the price every month or so until they were both in the $70,000 - $80,000 range. I made offers a couple months ago, and I made it clear to the listing agents that I wanted both, not one or the other. After over a month of negotiations, Fannie Mae accepted my offers on both, which I think were around $63,000 at the time. When I tried to submit the signed contracts and paperwork, the listing agents told me that both properties had been taken off the market. I figured I'd lost them to another buyer. About a week later, I received a call from a different agent in Orlando, who told me he was the new listing agent for both properties, and Fannie Mae had set the new listing price for each property at $54,000. I jumped on the deal and still can't believe how Fannie Mae does business, although I am grateful for their stupidity.

Anyways, the units of each duplex are 2 bedroom, 1 bath. Great layouts and the bedrooms are huge! Both properties need a complete rehab. Once complete, each unit should rent for about $700 per month.

If anyone has any suggestions on how to tenant-proof rental properties please let me know. I want to include the suggestions in the rehab so these properties are as durable as possible.

Just curious how many other investors use the flat fee brokers, who charge a flat fee to list on the MLS and then step away.

I've been using one of these brokers for a while now, and it's great. I always offer the selling agent 2.5%, which is typical in my area, so I don't miss out on any showings.

I recently left the brokerage I where I was a broker associate in order to become a standalone broker, so soon I'll be able to list for free. I imagine my investor friends will start asking me to list their properties for a flat fee as well.

I would call it a barrel cottage. I've only seen them at Unicoi State Park in Georgia. Definitely unique!

@Christian Marin 

I'd be interested in any deals you find in the Lake County area.

I'm looking for a great Central Florida GC as well!

Start charging the late fee. Right now they have no incentive to pay on time.

I'm looking for someone to partner with for investing in the Lake County, FL area. This will be a flipping strategy for single family homes. 

My business is currently limited due to lack of funds/cash flow. I would like to partner 50/50, with the money partner supplying the funds and myself managing the flip. 

I have an excellent track record and this would be a great opportunity for someone who wants to invest but would like to remain hands-off. Let me know if you or someone you know is interested.

I have a house I'm in the process of buying with the intention of flipping, and the owners would like to rent for a month after closing. Assuming they qualify, would you do it? Why or why not? 

It seems like this strategy would be a good selling point for certain people looking to sell their houses, since many people need the money from the sale to make the move.

This is what I believe to be true, but I'm not an expert on the subject and I've never bought something from a tax deed auction myself.

When someone fails to pay their property taxes for the year, the county tax collector issues a tax certificate which is auctioned off to a third party bidder. It's a reverse auction with the interest rates starting high and being bid lower and lower. 

After a certain period of time, the tax deed auction is held and the actual property is auctioned off, with the proceeds going to the holders of the tax certificates. Once you buy a property at one of these auctions, you have to have an attorney quiet the title in order for you to sell it or whatnot. 

Code enforcement liens do not get wiped out. However, the city or county will usually settle the lien for less than what is owned after you clean everything up. No guarantee though.

I don't know anything about how the auction comes about, whether it's a forced auction by the tax certificate holders or something the county initiates automatically.

I believe you can buy the property prior to the auction as long as the owner agrees. Usually the starting price of the auction is the amount of all the taxes that are owed, including interest. 

Hopefully this helps. I know a lot of guys who regularly buy properties this way, so there must be something to it. Good luck!

@Nick G. 

Appraised at $155,000. I was almost right on!