All Forum Posts by: Calvin N.

Hi Eric, We did make an offer and it was not accepted. I spoke to them again this week and were planning on making another offer. However, the company that is holding the note has requested the company that sold them the note repurchase it. Apparently, the note holder was not told that the city had condemned the property. So, they are selling it back to the orginal note holder. I spoke to both companies today and placed an offer with the company that is taking the note back.

If this is confusing to you...sorry! Reading this confuses me. Anyway, I will keep updating as I hear more from them.

Thanks!

I manage my own, but I only have three. It can be a pain. All of mine are local so I can stop by and check on them regularly. If I was further away I would pay for someone else to manage it.

When my wife and I get more than we want to handle (maybe 10 or more units) we will turn them over to a management company. Our plan is to pick up 4 more units this year.

You are correct in stating the risks and we are aware of them. As you said it is unlikely they would do so. If they want to pay a note of 140K that I paid no more than 30K for I would take that, even over 30 years. I will keep you posted if and when I hear from the note holder.

The owner is out of state and neither the current note holder or the county tax accessor has a good contact address or phone number. I would have to foreclose on it if I purchased the note.

I located a property that has a note for 140K. The note holder, an out of state financial company is eager to sell. The house was condemned by the city. The judge has given until March 28 to begin repairs or the house will be bulldozed. The homeowner is out of state and has not done any repairs or improvements.

Is there a "normal" discount for a loan of this type? What would you suggest I offer? I understand that after purchasing the note I would have to foreclose on the property. Thanks for your help.

UPDATE
I have spoken to the rep from the city and he said to keep him informed of my progress. He said it will not be a problem to get an extension from the judge as long as we can show we are moving in the right direction. I spoke to another investor this morning that went through the same process a few months ago. His property was past the demo date and he was able to extend it with no trouble from the local city officials.

The property will need major rehabing. Estimates from my contractor are 50-70K, depending on the grade of finish we decide to go with. The home should be worth 200K ARV, based on Comps in the area. I am very familiar with the properties in the area.

I submitted an offer to purchase the note this afternoon. They said I would hear back within three days. We will see.

Any of you with experience in this type of transaction? Thanks!

FloridaGirl, Try www.bpo4agent.com It has a pretty good list of companies that you can contact. It is time consuming. Once you have filled out a couple of the forms you will have all the information you need to fill out the rest. It helps to write down all the information that is asked for so you have it handy to complete the other companies' forms. Best of luck!

Brian, Check out some of the new homes in the area that are on the price range that you expect to sell yours for, ones that will be comparable to yours when it is complete. That is your competition. Try to stay in the same range of quality that they have. I would not put stainless steel appliances in a home under 150K in my area. However, your market may be different.

Just don't put more into it than you can get out of it. Best of luck!

I found a home that was scheduled for demolition by the city IF repairs were not began. The previous owner started, but then stopped and has abandoned the property. The judge has now set the date of demolition for 28 March. In the mean time the note holder sold the note to another company.

The note is for $140,000. The lot cleared is worth 10K. The structure is worth maybe 20K. I have spoken to all involved and the note holder asked that we make an offer on the note. They have not began the foreclosure process since the home will be bulldozed before they could complete it.

The note holder is an out of state financial investment company. Would an offer of 20-40K on a 140K note be considered? If nothing is done by March 28 the city will tear it down, leaving the note holder with nothing but a vacant lot. I own property across the street from this house and would like to rehab the structure. Anyone dealt with a deal like this before? Suggestions? I guess it would not hurt to offer and see. Thanks.

I have read, but want to confirm that I can report forgiven rent payments from a tenant as income to the IRS. The tenant moved out and owes me for last month and a half rent plus utilities. Instead of going after them in small claims court (they don't have any money) I would prefer to report it as income to the IRS for them and let the IRS have a chance of getting some taxes out of them.

Have any of you done this? If so, what form did you use to report it?

Thanks!

Some gurus may tell you that you have to have your "team" in place before investing. I disagree. To each his own, I guess.

You can build your team as you invest. As you look for properties you may contact some realtors. Meet them, decide who you like and feel you can work with. You will want to be pre approved for a loan, either conventional or hard money. To do that you will talk with several lenders. Once you have a property you are interested in you may need to find a closing attorney. In some cases the seller or lender may have a preference that is stipulated in the contract. Who do you have insurance with now? Do they offer the type coverage you will need? If not, ask them who they recommend.

Once you have one member of your "team" ask them who they recommend for other professional services you require. I talked to several realtors when I was looking at properties to learn the market. I asked each one what builders , lenders, closing attorneys, etc. they would recommend. You will get a lot of leads and go from there.

Just because you haven't interviewed and decided on who will fill each role in your real estate investing team doesn't mean you can't buy a property. Many use that as an excuse not to do anything else. Pick a property, do your research and get started. If your realtor, lender, insurance agent, etc. doesn't turn out to be the best for you then get another one!

Best of luck!