All Forum Posts by: Scott D Fitts

@David F. You are correct in that it would be really risky to buy this through auction. You would have little negotiating ability with the lien holders to get them to settle out. They would be able to keep you from selling unless they could get their money.  It sounds like all the bank is doing is selling their position through their foreclosure.  I would want to have a good attorney on this...

I can tell you that I once purchased a property with seventeen liens on it and the purchase price would not anywhere near satisfy the total of the liens.  Though it was a lot of work and headaches, I was able to talk each of the lien holders to take pennies on the dollar for a release of the lien on that particular property. It can be done, but it is dependent on negotiations and how much time you have. If you cannot get each one to release, then you will have to weigh what it is worth to go with the property, ultimately walking away.  Remember, everyone considering the property will have the same issue to deal with...

Actually, no need to run unless these are black/burned out. Then there are possibly bigger problems.  Just to replace the main entrance you are probably looking at $2K...

Good Afternoon BP,

I formed a real estate investment LLC this year and have been immersed in studying everything from the Fortune Builders Mastery program to home inspection courses and have now completed the Maine Real Estate Sales Agent course. I have been building my team of private money lenders, other investors and real estate agents and have started putting out offers on subject properties, but nothing has caught on yet.

As I look forward to the next year, retiring and taking on real estate and investing full time, I am wondering if there are any real estate firms that are particularly investor friendly and would be a good match? I have discussed joining a couple of firms locally, but get the impression that there is not a good understanding of investment strategies or the logic of redevelopment of the property to maximize its potential for resale.  

Any suggestions would be most appreciated...

Hi Matt,

I am just down the road in Saco. The number of realtors you have working for you, the greater the chance of catching the good deals. Of course, it all depends how deep you want to jump into the business, but the more people you have out there looking for deals the better for you.  Like in most businesses, you will find that there are some that will work great with you and you can develop a good and more frequent working relationship with them, but it is always good to keep your options open. 

One principle I have always followed is that there is never harm in asking. You should find out as much as you can about a property, expenses, issues, tenants, etc. (due diligence) as soon as you can in the process as it will save you time in the end. 

Purchased homes in the past, upgraded and sold and hold one. Invested in another property. Looking to complete multiple deals this year.

Jacob,

I would work the numbers and if they looked good, I'd do it. Of course, I would be sure that I had the contractors to turn them over quickly or the money will cost more and impact the bottom line.  Sounds like a good market though, which is proven by the first deal.

Been in houses like that before.  Once went into a rental where the tenant had three mini horses in the dining room. The floor was covered up to the outlets. Don't k now how anyone could even think of living that way.  Always will keep a close eye on what is going on and take nothing for granted...

David,

Hello, from just up the road from you in Maine.  I feel your pain here, when looking at getting into multi's. It seems like the tenants are ahead in the count on you from the very beginning and many are just trying to game the system.  They do have the upper hand, when it comes to protections and the Courts at this point, and it is difficult to tell the good from the bad.  When I started looking at multi's, I reached out for advice from a few and received what I consider as good direction.  Location, location, location! 

Best of luck...

Alfredo,

If you use Zillo and look at the sold properties in the area of the subject property, that can give you a good good comps. I would not rely on the Zestimate amounts, because they can be substantially off. If the comp is in the same school district / neighborhood and involves the same style home, you should be pretty close to the ARV, if bringing the subject home up to the standard. Using the sold comps is always safer, in my mind.

I have also found that a number of cities/counties maintain a list of sold properties as well that can be used for comping. 

Best of luck!

Scott