All Forum Posts by: Roman M.

you will need to show 2 Yr tax return for a conventional loan and a lot of times they don't count capital gains as income.

It better if you try to get a mortgage while you still have a job and buy a duplex with small downpayment (maybe fha loan or one of the Fannie May programs they have now - I think it's called HomePath or similar name). 

HML will most likely want a large down.

George you don't have to pay broker fees.  Just go out and find your own note sellers.  There are several ways to do it which includes a lot of advertising, mail out campaigns, telephone calls, etc. Way too time consuming for me as I would rather focus on valuation & DD part of the note purchase than doing all this clerical stuff.  Therefore, I will gladly pay broker fees and will just incorporate that fee into my valuation and make an offer based on the numbers that work for me. 

ask 5 attorneys and get 5 different answers. Everything is arguable in court.

We have a pool of Maricopa County, AZ tax liens at 16% that we want to sell as a pool.  Redemption value is just north of $40,000.  All liens are foreclosure eligible.

Let me know if you are interested.

Tax Deed sale is the easiest way out of liens as it will wipe out all liens except for municipal, building & code enforcement.   So why do you want to stop the sale?  It makes no sense unless the property is worth way more than opening bid plus liens and you want to put your bidding competition out of business. 

There is really no way to stop the sale unless someone doesn't get proper service of the sale or homeowner files for bankruptcy.  

If ARV is $310k and you only need to put in $55k, plus $36k for liens (which you can probably negotiate to even lower) plus $15k in work= you making great return.

it is usually in recording sequence. If the note you are buying is recorded before child support lien than child support lien should be wiped out in a foreclosure so long that all lien holders are named in the lawsuit. 

You will normally run into issues with IRS liens due to redemption period. I will not worry with child support lien though. 

If there is a mortgage on the property than there is 90% chance that the lender will pay the tax or redeem. They will be notified of the auction and tax sale. 

If you do the lease option and end up with the property then it will be subject to the mortgage so you better off buying it at a tax sale.

I recommend to have an attorney to prepare deed and lease option contract.

You forgot inflation & lack of financing.  Not everyone is jumping on a boat of buying. During last crash everyone was a real estate investor (even cab drivers) and everyone was highly leveraged. Returns were under 4% with interest rates at 6% to 7% and lots of adjustable rates and than there was liar loans. 

If return on your rental properties makes sense than it doesn't matter what happens, you just keep collecting rent, paying down your loans and eventually you get a free and clear cash cow.

The outcome really depends on your goals and if you in it for a long run to create a steady passive income or you are in for a short run to cash out and move on.

Aaron you might have issues with usury law if you will charge $5,000 interest on $1,000 loan or enforcing the contract and foreclosing on the property. 

I believe that Georgia has 12 month redemption period after tax sale that means owner can live in the house for 12 months after the sale and redeem the property any time within 12 months.

It will probably be easier if they deed the property to you and sign a lease with option to buy back at certain price within set period of time.

If you good with the value then next steps are due diligence:

1. Title report will show you who is the current mortgage holder. You want to make sure that it's in the note sellers name.

2. Examine chain of note assignments. if this note was assigned a few times you want to make sure that there are no gaps.

3. Bankruptcy filing. Are there any or were there any before.  Also review loan statement/ payment history. 

4. If you can get a hold of the owner then maybe find out why there weren't able to refi. And what owner's plans and intention are going forward.

5. Escrow: you want to make sure that your funds are escrowed and not released to the seller until you receive original note and assignment. These two documents are basically your title to the property/note. I would recommend to have an escrow agreement prepared and funds held by attorney or title co. I think this is the most important piece of not losing the money. 

6. Authority to sign: make sure seller has authority to sign and sell the note.

7. Plan your steps post closing ahead of time in terms of: foreclosure, loan servicer, recording your note assignment.