All Forum Posts by: Paul Hoeppner

I came across a unique scenario recently and I wanted to share it, because I just thought some of you would think it's somewhat interesting content.

I was out Driving for Dollars, and I've always come across this recently (4-5 years ago) abandoned church. The building does not look like a church, and it's a nice brick building in a good neighborhood.  The county records show that the property is owned by the church still, but I can't find any information on the church.  When I searched for 5013c's, I didn't find any information and it seems as if the nonprofit has dissolved.  The only info I could find was a disconnected phone number that I found doing a skip trace.

So here's where I'm a bit confused and have a couple of questions.

1. If the county isn't assessing any taxes on this property because it was once owned by a nonprofit, how will the property ever be turned over to the city unless it becomes deemed "unsafe"?  There are small leans by the city for mowing the grass, but they're just never going to be able takeover ownership of the property at this pace.

2. Does anyone have any suggestions on how to possibly find Articles of Organization or any other info that may have been filed as part of the 5013c?  Really I'm looking for any other ideas to attempt to contact anyone from this nonprofit.  I'm not very well versed in nonprofits.

3. If a nonprofit no longer exists, who even has the rights to sell the property?

The church owns a neighboring house too that's in pretty bad shape, but I do know there's someone living there (and the tenant has changed a couple of times in the last 6 months).  I've tried to contact this person, with no luck, in an attempt to find out if they are renting the property.  I might even consider offering a compensation, if they can put me in touch with someone from the church.

I've spoken to the Neighborhood Improvement Officer for the city, and he said he gets complaints about the property all the time, and I know the city would love to see it developed into an 8-10 unit apartment building, but they seem to feel as if their hands are tied from what I could tell.

Originally posted by @Uriah Maynard:

Dispute everything bad on your credit report three times each with all three of the reporting agencies. This will knock off a lot of the old or small stuff. Then pay off any that remain. That alone should get you up where you need to be credit wise. 

If you don't have a credit card, now is the time. People say to use it a bit each month but really it doesn't matter, you can pretty much just stick it in a safe and ignore it and it'll be fine, though eventually they may close it for inactivity, years from now. Neither of my earliest secured cards ever closed and they haven't been used even once since I qualified for a good cash back card shortly after buying my house. At this point I'd rather have the old account than my deposit back.

Also, don't put your gf on the mortgage. Her lack of income is a problem, and unless the money you're putting down is partly hers, there is absolutely no reason to put her on there, and there could be big consequences if you break up, though I'm sure you'll be among the lucky few who make it. Fix your credit, and you'll qualify on your own this year if you've got two years at your job. That said, you may need more money to buy in LA even with an FHA loan. You may qualify for a first time homebuyer grant to cover your down payment though, be sure to check on that.

Some good points here.

I was able to fix my credit using this same model years ago.  It’s tough to give advice without knowing the full scope of what’s exactly on your credit report. 

Also, Creditors are settling debt for $.10 on the dollar right now, begging for people to pay off debt if disputing the charges with the credit bureaus don’t work


I've personally never been a fan of FHA loans unless the deal really warrants it.
 
That being said, what you should do in terms of investing, you’re on track.  You’re on BP posting and learning so you’re ready when the time is right.

Good luck!

I'm in the process of purchasing a small apartment building with a partner.  I reside in NV and he resides in IA, and the property is located in IL.

1. Would it be best to setup an LLC in the state of IL or one of our homes states?

2. Are we even allowed to setup an LLC in the state of IL, or are we better off setting up an LLC in Nevada/Iowa and just apply to transact business in the state of IL since neither of us are residents?

3. Does anyone have experience with option #2 and what the typical timeline for the process to apply to transact business in IL as a foreign corporation would be?

Thanks in advance!

Paul

You should read Ken McElroy's book The ABCs of Real Estate Investing. The book focuses on multi family properties. I agree with the others are saying. The BP members could help you out more if they knew what you asked. Also, different properties and locations bring up different questions.

I really feel it's market dependent. However, that being said, I know when I was a renter I didn't even look at units without a washer and dryer. They add more value than just the financial benefit of the extra $25-$30/month.

Referrals work both ways. If you find a good contractor, I think you should make it your best interest to refer them to non-investor home owners that need projects done. Those are the types of customers looking for quality work and are commonly less concerned with the lowest possible price, assuming they are given a fair rate. Also, be fair with your contractor. It takes time to establish a relationship. Know what you want and make quick decisions. Don't waste their time, just like you don't want them to waste yours. Contractors need motivation to work, and let's be honest, we're not paying top dollar, so they need to feel appreciated and respected, while having respect for you.

I think the best way is to constantly talk about your interest in real estate.  If you show your significant other how interested that you are in real estate investing and that's it's become a passion of yours (because let's be honest, if you're not passionate about it then you're much less likely to succeed) he/she will be much more inclined to except your investment ideas.  If they also have seen first hand that you've spent time educating yourself with books, forums, and webinars, your spouse will be much more trusting and supportive of your decisions.

This is the approach that I took, and when it came time to do my first deal, she was pushing me when I became a little hesitant.  Now she's my biggest supporter.

@Brie Schmidt if you've never been to Europe or Asia, and want travel advice, please reach out.  I've traveled the world multiple times and never pay for flights and rarely hotels.

It's 2 story.  The developer did another project in a neighboring city that was done really well, and the rents were typically higher than a mortgage.

Thanks for the input!

@Michell P. thanks for the input!  I'm not sure if this matters much, but there is houses directly to the left of this house, and right across the street.  The closest commercial area isn't for another 5-6 blocks.

That being said, I kind of had the same thought process as you're saying.

Any change in value if they decide to make these lofts condos instead of apartments?