All Forum Posts by: Steve Doherty
Steve Doherty has started 2 posts and replied 7 times.
Post: Pints and Properties- Waltham
- Marlborough, MA
- Posts 9
- Votes 2
Hi Jon, Chantal and I will both be attending your Waltham meetup
Thanks!
Post: Has anyone used WealthAbility?
- Marlborough, MA
- Posts 9
- Votes 2
@Rich Hupper my understanding is that once you make the leap to commercial real estate. E.g Multifamily greater than 4, is when banks no longer look for personal guarantee's. I have read that acquiring bank loans in some ways actually gets easier as the bank cares about the NOI, CAP rate etc as the basis for the loan and not the individual behind the company seeking the loan. I have no experience yet with this. It (large multifamily) is however on my roadmap to start doing soon...
Post: 80 Hudson Fix and Flip
- Marlborough, MA
- Posts 9
- Votes 2
Investment Info:
Single-family residence fix & flip investment in Marlborough.
Purchase price: $130,000
Cash invested: $80,000
Sale price: $290,000
Stunningly remodeled 2-bedroom Colonial was Oogway LLC's first project. A complete gut job that ended up restoring a very old New England village Colonial to its original charm. Enter through the front door & fall in love w/ open kitchen & dining offering gleaming hardwood floors, tons of natural light, s/s appliances, granite countertops & white cabinets! A great space to entertain guests while cooking. The 1st floor also includes a sun-filled living rm & an updated full bath w/ laundry.
What made you interested in investing in this type of deal?
This fix and flip was run down and in need of serious TLC. It was located in a desirable neighborhood and once renovated would be the perfect home fro people who desired access to outdoor activities while at the same time being with oin walking distance to a vibrant down town with great restaurants and brew pubs.
How did you find this deal and how did you negotiate it?
I found this deal via a Realtor who worked with local Property managers. He knew the absentee landlord was looking to sell. I offered below asking. The seller initially balked. a few months later after the house sat on the market I resubmitted my offer and the seller accepted.
How did you finance this deal?
This was an all cash deal.
How did you add value to the deal?
We added value by way of a thorough update and modernization of the property. We moved the washer/dryer service from the dark basement to a space in the first floor bathroom. We replaced an old rotting porch with a larger wrap around porch and staircase. We updated the electrical systems and we added new high efficiency German heating systems.
What was the outcome?
This was a "home run" for Oogway. We made 80k on the deal and when on to our next fix and flip.
Lessons learned? Challenges?
The primary lessons learned were the value of a good contractor and staying on top of their work on a daily/weekly basis. We also were able to see the value of an "all cash offer". It was our offer that made the deal attractive to seller because we could close quickly.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Galen Keller of GK Realty was the agent who was able to help us acquire the property. He was excellent!
Post: Purchase 2 liens from Tax Lien Vault?
- Marlborough, MA
- Posts 9
- Votes 2
Originally posted by @Jay Hinrichs:
Sounds like turn key tax lien investing... obviously the company wanting to sell or broker the tax' liens are expecting some profit for doing so.. SAid profit being on top of what one would pay for the lien.. Or just guessing here this company scouts out those that have the high interest rate tax liens proves that they bought a worthless tax lien offers pennies on the dollar and then resells for profit.
why don't you just go buy your own tax liens at the tax sale why pay a premium for them?
I suspect by asking this question on BP you just saved yourself from entering into to a deal that would not be fruitfull in any way... My experience with tax cert states and I am by no way any expert but I have been to half a dozen sales and I know when I see a court house controlled by the local big players when I see one and that is what I saw in the tax cert bizz the big boys gobble them up and the private investors are picking up the crumbs.. at least that's what I saw in MS.
Thanks Jay. I posted a longer reply but did not use the quote function to notify you. Thanks again, This was very helpful. I apologize if I am unintentionally spamming you and Wayne!
Post: Purchase 2 liens from Tax Lien Vault?
- Marlborough, MA
- Posts 9
- Votes 2
Originally posted by @Wayne Brooks:
Generally, tax certificates (they're not referred to as liens here) that sell for those high interest rates are of little to no value. Otherwise someone would have bid them down to less than 5% at the original certificate auction. But the important thing to realize is how you would collect. To collect you, or some other certificate holder, has to send them to auction. To do that you'd have to redeem/pay off All the other certificate holders on that property, maybe 4 or 5 years worth, and pay some additional fees to send it to a Tax Deed auction. Therein lies the rub....if the 5 other tax year certificates are owed $2000 each, you're putting up another $10k plus to send it to auction. If no bidders bid the minimum amount covering your certificate and all the other redeems certificates, you get the property back. Obviously if no one bids the required amount, the property isn't worth that much. This is likely the reason these Certificates are for sale, the holder realizes they are "upside down" and is looking for someone to bail them out.
If you understand that Florida Tax Certificates are "sold" by way of bidders bidding "down" the interest rate they are willing to accept, starting from a high limit of 18%, and that most certificates are "sold" at a rate below 5%, you'll understand that no one wanted the certificates, for some reason, therefore you can assume that any certificates going for the 15-18% rate are basically junk, and no one bidding wanted them. This is not the pool of investments I'd want to be picking from.
Thanks Wayne. I posted a longer reply but did not use the quote function to notify you. Thanks again, This was very helpful.
Post: Purchase 2 liens from Tax Lien Vault?
- Marlborough, MA
- Posts 9
- Votes 2
Wayne and Jay, thanks for the replies. It is enormously helpful. These certificates are being marketed as "over the counter" as leftovers from the auction(s). The logic being provided for purchase them is that when the owner pays the tax then the cert(s) will be redeemed and the investor (me) will get paid. It sounds like that is a wee bit of an oversimplification. Especially if my exit strategy options are either let the certs expire and be out the investment or be forced to pony up possibly an additional 10k +/- to force the property to auction/sale and possibly be stuck in the end with worthless property. The least likely outcome appears to be an 18% ROI to me. It feels a bit like the real estate equivalent of the "pump and dump" strategies of dicey stock brokerages. Thanks again and yes, you have helped save me a nice chunk of my hard earned money!
Post: Purchase 2 liens from Tax Lien Vault?
- Marlborough, MA
- Posts 9
- Votes 2
Hello All, I am a newbie investor and I am trying to determine if I should purchase 2 liens (18% & 15.25%) in Florida (St Luce and Sarasota counties) through Tax Lien Vault by way of a company called REI Holdings Inc. Both liens appear to be to be between 6 and 7 years old. Meaning they are about a year or 2 away from expiring and therefore requiring either the property owner to redeem OR that someone initiates foreclosure to either force payment and/or sale of the land. These liens are land only. They appear to be in nice developments that the builder for various reasons has stopped work on. So my questions are: Is buying a lien through a 3rd party and having it transferred to me (via my bidder ID in the relevant counties) considered normal/wise/ok? The seller says the lien transfer will take about 30 days due to slow moving County transfer processes. The Tax Lien Vault has been pretty straightforward with answering all my questions. I am just a little nervous on pulling the trigger on my first Tax Lien investment and am looking for some guidance from wiser more experienced investors! Thanks!