All Forum Posts by: Derek W.

hey @Account Closed , next time you teach the class "how to be a perfect investor and use my proprietary crystal ball to all avoid all mistakes" will you send me an invite?  I need to go to that course!

I thought on Saturday you were allowed to start drinking at 9am??? I sure wouldn't want to do 3 day notices after a couple glasses of Malbec. Am I missing something?

@Jassem A. Google some articles about Camden. I'm not sure you are understanding how volatile and toxic the area is. I have rentals in "bad" areas, but this is an entirely different beast. 

Though it won't remove existing fines/liens as @George C. pointed out, I vote for you "selling" it to the "Camden Revitalization Trust" and putting the address for the trust as the local code enforcement or city building. Hopefully it throws off the scent and prevents future harassment. Then since you are actually in charge of the trust, if a miracle happens and property even regains value, you still have a play. Who knows, maybe they will believe they own it and remove the fines? It's not over-insured with faulty electric wires, is it?  Just asking!

I'd suggest writing a cash offer and put that sentence I suggested in your offer. Then it won't be a problem. 

 It's very possible to use "other sources" of financing. 

In the last 5 years we have had unprecedented low interest rates. One suggestion would be to look for homes you want in your desired area and find houses with loans made from 2008-2011. Then market to these homes. Your goal is to take over the existing low interest financing from the owner. 

Or find free and clear homes and make the seller monthly payments. This method is really great fun as you can always discount the note in the future, or renegotiate if the market shifts. 

An offer using a hard money loan is NOT a cash offer. It's a financed offer. If you write the offer as cash without a hard money escape clause (eg "Buyer has funds to close cash but reserves the right to close using a hard money lender assuming no delay in closing or cost to seller") then you could lose your deposit when the seller refuses to let you switch to a financed offer. REOs are particularly strict with this. Asset managers are sick of getting all cash offers only to receive an addendum from escrow asking to switch to a loan. Believe it to not, but there are lots of flaky hard money lenders who fail to close. Although there are good, reliable and reputable HM lenders, there are plenty of flakes. And those have ruined some asset managers from wanting to deal with offers using hard money. 

You can always just file a DBA and open a bank account for your DBA if you're not ready for the expense of an LLC.

I get why you would rather the tenants not know you're the owner. It's easier to be good cop and blame corporate as bad cop. It's never my fault when I have to give the tenants a memo or correct condition notice. It's always...code enforcement, insurance company, my boss at the management company, etc. 

it's not always cut and dry as to who is a motivated seller and who isn't. I just had a man call me from a letter who was very unmotivated according to everything he said. "I got this letter of yours.  I'm not interested in a lowball offer.  I don't need to sell.  I'll just put a new renter in. And I'm busy and don't have any time to talk to you. Neighbor has a key, go see it and if you're interested email me an offer. Don't bother calling back."  I went and saw the house, emailed him an offer and he accepted. Weird. 

Based on experienced like that, I send offers to EVERYONE I talk to. If they don't accept, the others have given great advice about how to file and follow up from time to time. 

I don't ever have weasel clauses in any of my contracts. They are either able to sell me the property, or I get my money back. That's in all REO addendums they send to you. The only reason they couldn't close is if they have a title problem they discover, and each time that has happened, I negotiate a further discount to close with title problem in place and I fix it myself. The one clause I do add to my purchase contract is "buyer has sufficient funds to close all cash, but reserves the right to close with hard money loan assuming no cost to seller and no delay in close." This allows me to have a deed of trust recorded if I need to use third party funds.