All Forum Posts by: Account Closed
Account Closed has started 141 posts and replied 4068 times.
Post: How To Find Pre-Foreclosure Notice of Defaults?
- Investor
- Scottsdale Austin Tuktoyaktuk
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Originally posted by @Zachary Handshoe:
Hi everyone, I'm a new investor who has spent quite a lot of time reading and looking into the process. I'm looking to get my first deal but won't be able to qualify for a loan since I'm an intern.
My situation has pushed me towards buying property "sub2" since I can use the capital I have to "help people with problems" and acquire property with less money and no loan.
My biggest issue is how do I find these properties? I have looked in my local county's clerk office and public records. The only documents I find are lots of "Debt Claims" with very little details. The documents have absolutely no further information, I've called local mortgage companies and nobody seems to know.
How do I find Notice of Defaults in my local county?
Foreclosures are done at the county level. Each county has their own process determined by state law. Since you don't mention the state and county, it's impossible to tell specifics, but generally: Notice of Defaults aren't recorded. They are a private document between lender & borrower. If the demand in the NOD is not met, the lender has the option to start a foreclosure. Foreclosures may show up as recorded documents. Foreclosures are mostly on hold at this point because of a foreclosure moratorium (as of July 2021). At some point, it is likely the moratorium will be dropped and then you start seeing foreclosures again. Some states have laws against targeting foreclosures.
Post: Legal Advice regarding a rental RE Agent
- Investor
- Scottsdale Austin Tuktoyaktuk
- Posts 4,205
- Votes 4,163
Originally posted by @Erik Logan:
I have a close friend of mine who was referred to an agent local in Dallas to find a rental house for him to live. He recently received a $120k medical settlement. Hes a little slow and doesn't understand business.
He gave her a $20k money order so she could find a property. (Please understand I didnt know about any of this until after it happed) he has a blank lease she has asked him to sign ( he hasnt done that yet). She doesnt have a property for him yet.
My question to everyone is what should i suggest him to do? This is territory i haven't been in.
FYI she is licensed as an agent here in Texas. Thanks
Sorry, I don't buy it.
The Dots don't connect. It doesn't pass the "smell" test.
Post: The Mobile Home Problem
- Investor
- Scottsdale Austin Tuktoyaktuk
- Posts 4,205
- Votes 4,163
Originally posted by @Michael Plante:
Originally posted by @Account Closed:
Originally posted by @Doug Laroche:
I NEED ADVICE!
It turns out that if a property has a house and a mobile home on the same lot, banks will not finance it (at least the ones I've talked to)
So here is the plan, I get a hard money loan for the property, then after purchase I get the zoning changed so the mobile home is on its own lot. This should make it so I can refinance into a conventional loan. the problem is I don't know much about zoning, and I don't know how refinancing two separate properties would work! Also would 70% of the home values get me out of the hard money loan all the way?
What do y'all think?
There's a piece of the pie that is missing. I haven't invested in Mass. so I'm only referencing what I've experienced. If the house is livable and passing inspection, a bank will lend on the house based on the appraisal amount regardless of the mobile. If the mobile is trashed or otherwise not livable, they may demand the mobile be cleaned up.
If the mobile is 1992 or newer, has skirting around it, has the axels removed and is on a concrete or block base, it may qualify for "elimination of title" and be able to borrowed against on it's own.
But, I 've never heard of a problem caused by there being a house (in good condition) and a mobile (in good condition) in getting financing. Something is missing here.
Would you please list what lenders you received loans from for mobile rentals on their own land?
I have always been told no
Sure, here is a link:
https://www.scotsmanguide.com/...
It depends on the criteria. Here is a list of options:
Another good idea is to talk to a local Mortgage Broker in your area (not a bank).
Post: The Mobile Home Problem
- Investor
- Scottsdale Austin Tuktoyaktuk
- Posts 4,205
- Votes 4,163
Originally posted by @Doug Laroche:
I NEED ADVICE!
It turns out that if a property has a house and a mobile home on the same lot, banks will not finance it (at least the ones I've talked to)
So here is the plan, I get a hard money loan for the property, then after purchase I get the zoning changed so the mobile home is on its own lot. This should make it so I can refinance into a conventional loan. the problem is I don't know much about zoning, and I don't know how refinancing two separate properties would work! Also would 70% of the home values get me out of the hard money loan all the way?
What do y'all think?
There's a piece of the pie that is missing. I haven't invested in Mass. so I'm only referencing what I've experienced. If the house is livable and passing inspection, a bank will lend on the house based on the appraisal amount regardless of the mobile. If the mobile is trashed or otherwise not livable, they may demand the mobile be cleaned up.
If the mobile is 1992 or newer, has skirting around it, has the axels removed and is on a concrete or block base, it may qualify for "elimination of title" and be able to borrowed against on it's own.
But, I 've never heard of a problem caused by there being a house (in good condition) and a mobile (in good condition) in getting financing. Something is missing here.
Post: Washington laws regarding wholesaling
- Investor
- Scottsdale Austin Tuktoyaktuk
- Posts 4,205
- Votes 4,163
Originally posted by @Lynn Knaak:
@Jay Hinrichs I’m not worried about Oregon. Your waisting yours and my time. So just quit responding
If you want to be successful in real estate (wholesaling or otherwise) you have to be able to get along with people and not have a chip on the shoulder. You will get a thousand "no'"s before you get a "yes". That's just hhow the business is. The man you are bad mouthing has been very successful and is actually trying to help you. But, you won't have it, to your detriment.
Post: Selling home after 1.5yrs - Will Capital Gains Tax be Excluded?
- Investor
- Scottsdale Austin Tuktoyaktuk
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Originally posted by @Trevor J.:
Hey All,
Has anyone had any success with having their capital gains tax excluded upon sale of your property after living there for only 1.5 out of the last 5 years?
In Garrett Sutton's book, "Loopholes of Real Estate", Chapter 11, he writes that a "year" is justified if you lived there for the majority of that calendar year... therefore living in your primary residence for 1yr and 7months consecutively should grant you the Primary Residence Exception, right? He also mentions that under special circumstances you can get a pro-rated exclusion, but first want to see about the whole exclusion.
Any accountants have a take on this? Thanks! -Trevor
If you were the IRS looking for revenue, would you grant an exception on something like this because someone on a forum stated it might be okay? You never really know until the audit hits you. The mean man from the IRS will ask you this question: "Who gave you that advice?"
Stick to asking your CPA or Tax Lawyer, in person, in a meeting and pay for the advice. They can represent you in tax court if necessary. You'll thank me later. ;-)
Post: Converting Short-Term Rentals?
- Investor
- Scottsdale Austin Tuktoyaktuk
- Posts 4,205
- Votes 4,163
Originally posted by @Joe S.:
Originally posted by @Account Closed:
Originally posted by @Joe S.:
Originally posted by @Kusal Kularatne:
Yes, combining the Rent by the Room model with a Single-Family Home has been pretty effective in my experience. Works well in college towns (that's how I got into it when I went to school).
But I've also seen it become quite effective among new graduates and 20-30 somethings. Avg apartment rent in Dallas for example is $1216/mo, but a coliving house where you rent a room would be like $500-750/mo.
Who pays for the utilities? In your example above if you had a three bedroom and rented each room for $500 that equals $1500. So you’re getting close to $300 extra month on rent bathroom. Now if you had to pay for utilities out-of-pocket that could take away the incentive of renting by the room as a profit center.
@Joe, I see you are in San Antonio. I have a rental in Kyle and I like S.A. for investing. If you were going to set up a Short Term Rental (VRBO) what part of S.A. would make sense? Between SeaWorld & Six Flags or more around Prospect Hill/Five Points?
So far I have never set up a STR. I have talked about it, but I'm a little nervous to self manage. I have had several houses that I thought would have been a good short term rental, but with HOA unknowns and the property manager charging such a large amount of the gross I backed off.
Looks to me like self managing is a few phone calls a week. HOAs can be a problem, but if they allow STR it shouldn't be an issue. I've been following a couple of guys on BP who do STR and are very happy with it.
That being said, from a business point of view, if you were visiting San Antonio and staying in a STR, would you like
1. Between SeaWorld & Six Flags or
2. more around Prospect Hill/Five Points?
Post: Moving to Short Term Rentals
- Investor
- Scottsdale Austin Tuktoyaktuk
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Originally posted by @Josh Fisher:
I need to wait for 2 years to avoid Capitol gains. I have 9 more months to go...
You may misunderstand how capital gains works on rentals. Contact a CPA for clarification.
Post: STR: 1 bed or 2 bed better?
- Investor
- Scottsdale Austin Tuktoyaktuk
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Originally posted by @Maria Ferre:
I'm looking at the possibility of buying a short term rental --- and see two that I like (different locations though). My question is, is it advantageous to get a 1 bedroom, or a 2 bedroom house?
1) The 1-bedroom is a cabin like place in the mountains, 600 SQ FT. (it was a 2-bedroom) but was remodeled into a 1-bed for the purpose of STR.) Looking at comps it can rent for 150-180/night.
2) The other is a 2-bedroom bungalow near a growing town in North Carolina. Breweries around, hiking, about an hour from charlotte. It can rent for 100-120/night.
Thoughts on wether a 1-bedroom, or 2-bedroom STR does better?? And re-sale value afterwards?
I too, am looking at starting an STR. It appears that 2 bedrooms are much more in demand. Also it turns out every community has it's licensing requirements, some places you file taxes like 18 - 24 times a year. STR has to be certified by the fire department. Property management can run 20% if you have a PM. You need to furnish the property. One post I saw said they pay about $1000 a month for electricity. You have to advertise or use VRBO or AirBnB and pay their fees. Set aside money for replacing towels and other things that wear out. Be prepared for lawn care, snow blowers and regular upkeep. If you self manage, find a cleaning company and handyman. For vacation rentals, presentation is very important. The first look a potential renter gets is from your photographs. It takes time to build a cliental and reputation, so plan low vacancy rates initially.
Post: Park cash till correction or 1031
- Investor
- Scottsdale Austin Tuktoyaktuk
- Posts 4,205
- Votes 4,163
Originally posted by @Ed Caldwell:
Process of cashing out a long ten rental. Great time to sell! That said, I can’t seem to find a decent multi family to roll onto at a decent cap rate and lock on the lower lending rates. The option of to pay the tax and park the cash till the correction coming and buy back in at better prices for cash flow. Thoughts?
Become a private lender until the correcton.