All Forum Posts by: Pat Jackson

Can I post names of companies and contact information on here?

I'm researching getting my feet wet in a number of different ways (live auction tomorrow).  Anyway, considering the possibilities of a flip, here are the rates and points my local lender can provide for a beginner such as myself:

$265,000 sales price

$39,750 down – 15%

$225,250 Acquisition Loan Amount

$50,000 Rehab Budget X 90% = $45,000 Rehab funds available to draw

$380,000 After Rehab Value X 75% = $285,000 is the max total Loan to Value ($225,250 + $45,000 = $270,250 is the Loan to Cost)

Rate for novice fix and flip (no property management, general contractor experience) is 12.49% and 2 pts ($5,405) or 10.49% and 3 pts ($8,107).

90 day minimum interest charge : Term is up to 9 months with a 3 month extension

$270,250 X 12.49% = $33,754 / 12 = $2,812 interest payment per month

From my research on here these are OK but not great.  Thoughts?

@Tiffany Smith, how is the rental market in St. Joseph?  I live out west but am interested in investing in St. Joe.

I may bid on a house a little over an hour from St. Joe. It got me to looking, St. Joe has a lot of reasonably priced houses with decent rents. The issue I see is there are ALOT of places for rent on Craigslist. I'm going to call some property managers in the area tomorrow, but am curious. Is the rental market saturated in St. Joe? I'd love to hear from any investors in the area. I may be paying a visit soon. Maybe.

Here are some staged photos from when the house was on the market.

Here are some pictures from the walk around today. Chimney bricks are chipping fairly badly. Siding doesn't look awesome.  

Just in case anyone is following this, after a visit to the courthouse today there are no additional liens on the property. It's been uninhabited for ~2 years. The roof has 2 layers of shingles, the second layer is somewhat old. I can't get into the house, my dad did a walk around today. Yard is mowed, window wells are filled with debris. May have caused windows in basement to leak. A realtor told me there is a bow in the foundation on the north side of the foundation.

@Jay Hinrichs, Holly Hannah!  I better have some insurance lined up then.  I'll call my insurance provider today.

Following some advice I just received, I'm trying to learn how to read title reports/do the searches myself.  This is hardly a search (in this case it will likely take a physical trip to the courthouse which is about to happen), but I am curious why there's a difference:

Here's a snapshot from the auction.com title report:

and here is the legal notice in the local newspaper:

I see there's a lien from 2007 for $16,270.  According to the paper, there was a deed of trust executed in 2015.  Do these different dates represent when the loan was made, and when they went into foreclosure/got underwater on their mortgage?  

I'm wanting to buy this house at auction, and doing my best due diligence to ensure there isn't more than one lien against the property.  I don't want to throw my hands up and say, "it's all Greek to me" but I must admit, I am a bit confused.

Followup question, I assume having these document numbers will speed up my search at the courthouse?

@Jay Hinrichs, I'm glad everyone doesn't know about timber!  I've always been interested in buying a piece of ground, logging it soon after acquisition and then:

1. Selling it off.

2. Renting it out for row crops, cattle pasture, or some other agriculture production endeavor.

3. Leasing it out for hunting.  

4. Taking advantage of CRP and several other federal conservation subsidies.  

I'm going to have my old man go by the courthouse (no real website) and do a title search.  Shouldn't be too bad and he likes research.

A question for Jay or whoever stumbles upon this.....I don't have to worry about property or title insurance until closing correct?  If I win the bid on Tuesday and a tornado demolishes it on Wednesday, that's not my problem is it?  I assume I get my funds back....but as the podcast says, "there's no such thing as a stupid question".