All Forum Posts by: Sam Tright

A fellow land investor told me on small tax deed deals instead of paying $2k+ for a quiet title suit, I could just sell on a land contract with a stipulation for no payoff for 2 years minimum. 2 years pass and title is quieted via the passage of time, no lawsuit needed. I could convey via special warranty deed or even general warranty deed.

Is this correct? If there's still a tiny risk, I don't mind. I just want to be sure there's no major risk to this as I've never heard you could skip the lawsuit before.

In my county there are tons of tax sale properties. As in you go in and buy a deed. You have to wait out the redemption period but that is the only downside.

Buying tax liens hoping to foreclose seems a step removed. Are there not tax sales/auctions in most of the country? 

Me and my general contractor partner buy 10k homes, put 15-25k in and resell for 80-90k. We've completed one so far. We can sell tradional or creative (seller finance, sell a large part of the note to recapitalize/profit, and move to the next one). 

My GC has access to more crews he would like to deploy. I am raising the funds for the effort. We only have 1 completed deal at the moment. Another one is about to be bought.

We are lining up to buy another house and run both rehabs at once. They are medium jobs, maybe 1 month effort. With 1 house completed, are multiple rehabs in flight a selling point with private lenders or a negative?

Saint Louis MO has a large list of Post 3rd sales. A local lawyer did a video on the process and mentioned a good starting bid is the full amount of taxes owed, but not interest and penalties.

Do you guys agree with this? I would of course like to bid at an even lower amount, for a partial payoff. These are Post 3rds after all. On the other hand maybe they have a floor amount to consider.

Does anyone know some Hard Money lenders with no minimum loan size?

We are targetting some houses purchasable at $10,000, with another $15,000 in rehab and misc fees. Most HMLs min loan size is $50-100k though, so not a perfect fit. 

I'll go to PMLs if there are no HMLs that loan this small.

A contractor told me about this list: https://stlouiscountymo.gov/st... Says the county is often tired of them and will let them go for cheap.

1. They don't appear for sale though? Example: "6117 evergreen blvd, berkeley mo 63114"

2. Anyone have experience with similar lists of houses? What is the best way to get a good price that actually gets accepted by the county?

A contractor told me about this list: https://stlouiscountymo.gov/st...

Says the county is often tired of them and will let them go for cheap. 

1. They don't appear for sale though? Example: "6117 evergreen blvd, berkeley mo 63114"

2. Anyone have experience with similar lists of houses? What is the best way to get a good price that actually gets accepted? 

Quote from @Charley Gates:

Hi Sam.  

I think that it will be challenging to find PMLs willing to lend an amount above the purchase price of the home especially if there is not a very strong track record of performance or a strong pre-existing relationship.  Most PMLs will want an equity buffer to fall back on in case of problems.  Of course, there are always exceptions.

Good luck with this acquisition. 

Thank you Charles! Is this true even for fix and flips?

Scenario 1) Buy a 65k house with 10k down, 7k to HML fees and closing costs. All in cost 75k. Resell for 100k on owner finance terms. PML refinances me out for 75k.

Scenario 2) Buy the same house with private money from the start. The loan is for 75k. I make 5k extra due to saving on HML costs.

Scenario 2 is more desirable, but the loan is over the purchase price, and covers closing costs and a light (5k) rehab. In your experience are PMLs willing to do this? Do they insist on seeing a strong track record? My track record is 1 house from scenario 1, plus about 50 "wrap deals" with various kinds of entries (mostly creative finance entries) that a partner has done.

I'm negotiating a wholesale deal where I instead partner with the buyer for a small upfront fee. Then a couple years down the line the agreement is we place a 2nd mortgage on the house to pay me more of my fee. It works because the deal was bought on seller finance at 0% interest. At the time of the 2nd mortgage the LTV on the property will be 70% or a little less.

I've never take a 2nd before, can anyone think of complications?

The only gotcha I see is that it will cost a fair amount, like 3-5% average I think