All Forum Posts by: Rich Baer

@Andrea Heintzelman

You would not lend unless you were the first mortgage on the property. You should require title insurance at settlement.

@Jeffrey Goers

You absolutely can. But you are missing the point. It's purchase price and location that matter in Baltimore. The cost of the finished product plays into it but it is down the line in terms of importance. The turnkey companies, for the most part, buy cheap properties in relatively bad neighborhoods. They buy a house for $10,000 to $20,000 and put $40,000 into it to make it nice. They try to sell it to an Investor for $80,000-$90,000 (if not more) based on what a tenant is paying (say $1200 month). The point is that house, even in its present rehabbed condition, in that neighborhood would only sell retail to a homeowner for $50,000-$60,000 based on other houses that have sold nearby. Why do you think there has been a dramatic rise in turnkey providers the last few years? They follow the above scenario and make the numbers appealing to out of area buyers. I am hesitant to say they take advantage of Buyers because the rental numbers can work, but the Sellers are pocketing profits on properties that they could not sell to anyone but an Investor.     

  P.S:                                                                                                                                                                     I just did a gut rehab in 21213 and I am lead free and done at $58,000 with new CAC.

@Account Closed

I only get calls on the homes that have toilets. A little Friday humor.

@Andrea Heintzelman

You are protected by: 1. Knowing the person you are lending to and their financials. 2. Know what the property is worth and what it will bring at foreclosure. 3. Having the Buyer sign a mortgage at settlement. 4. By having the insurance on the property add you as mortgagee.

Follow these pointers and you have no worries.

@Account Closed

If it actually is a deed then the foreclosure was finalized and the Bank owns it. Make sure that what you are seeing is not an assignment of the mortgage. If that is what it is then the Owner MAY still own it. You have to check the foreclosure case to see how far along it is.

@Nick M.

You have 2 issues. Has the Lien expired? In Maryland non-State liens expire after 12 years. Will your title insurer issue you title insurance for the purchase? If so, you have no worries. If not, you need to find out what the insurance underwriter wants done in order to insure it. The Bank will be no help unless they drop their price by the amount of the lien (unlikely). Your Attorney can try to reach the appropriate person at the DMV who can negotiate the the judgment. They can give you a waiver on the Lien as to the property or they can take whatever amount your Attorney can negotiate with them to satisfy it (if they are allowed to do so.)

@Jeffrey Goers

This is a C- neighborhood. Certainly not a resale area. If your turnkey is lead free, rented for $1000 month and your purchase price is less than $50,000 it is OK. Anything more and you are overpaying. You can certainly do better in terms of location and price.

@Tami Brooks

Sign a contract that is favorable to you. What ever number you agree on, make the contract subject to the amount of the Seller's mortgage payoff and unpaid taxes. In other words, you can get out if the numbers exceed a certain amount.

@Andrew Lomakin

What are they trying to teach you to do?

@Jonathan Choyce

Sounds like a Seller to avoid. I think you agree the terms don't favor you.

P.S. Please proof read your posts as I shouldn't have to try and guess what you are asking.