All Forum Posts by: Sheri Ulm

For more enlighting views of Detroit go to YouTube and search topics like $1 Detroit houses and Detroit ruins.... Strangely fascinating yet sad.

I don't know the Kentucky tax lien market or laws but several years ago I bought 3 FL tax leins via online auction just for fun. Now mind you these where very inexpensive liens...less then $400 for all. They paid 18%,18% and 16%. One paid off in a few months and I made a couple bucks...literally. I don't remember the exact numbers but it was a few dollars more then I bought it for. The 2nd paid off in less then a year and I made like $16 or something and the 3rd I forgot about until several years later when I got a notice the county office was trying to find me so they could send me my check...I had moved and not given a forwarding address and their check had been returned to them. I ended up making about $68 on that one but it took several years and I almost missed out. Now your talking a much higher investment so I would hope much higher returns.

On the rental side I have 2 I paid cash for...$12,500 & $10,800 already fully rehabbed and they rent for $550 each. I did lose 6k to a con artist and another 5k when the first one got vandelized but thats due to getting screwed by my original manager. I learned my leason the hard way but considered it part of my 'education' in remote rentals and now have a great manager local to the area that takes good care of my places. I am now buying my third for 5k and will put $1200-$1500 max into repairs and it will rent for $500-525. And I'm getting this one seller financed at only 3% interest and I only put $1000 down so my total outlay is less then $2500.

Based on this I'll take rentals over tax liens any day but hey, that's just me. If your interested in tax liens I'm sure alot of people make good money with them or I doubt they would be so popular. Just my 2 cents worth.

@Chuck Holland. Thanks!!

@Chuck Holland Thank you for your service!!! My husband was Air Force almost 8 years.

"You got to go where no one else will to find anything that's makes a buck"

And that is how I ended up investing in Eastern Ohio...not as bad as Detroit but a close second. Cheap houses, decent rents, cash flow every month and most people run away from this area. The secret is finding a GREAT person to take care of the properties for you...and believe me that was a challenge! I got burned twice in the beginning but stuck it out and am glad I did. Closing on my latest later this week and hoping to add 10+ more by years end if the real estate gods smile down on me.

Welcome to Bigger Pockets!

Everyone I have encountered here has been very helpful and you will gain alot of information here.

I am in Southern California and this market is out of my price range so I got brave and ventured into an area most people run from but it was what I could afford at the time and after a few hard lessons (read: expensive) I now have everything up and running smoothly and am now activly adding to my portfolio. I too was worried about buying in an unknown area and I ended up buying in Ohio...I've NEVER been to Ohio! I was warned about buying long distance and sight unseen but I didn't listen and I'm glad I didn't because even though it took some time and money I now am building a business and I would probably never have done that had I tried it here in Cali. Long distance investing isn't for everyone but right now it is working for me and I'm hoping to build my bussiness to the point were I can have long term passive income into retirement and/or from future sales of my rentals as well as enough cash to get into the fix and flip's where I live.

@ Rick Harmon... I'm not attached to the deal. In fact I'm probably going to let it go because I'm only interested in half the properties he wants to sell me and as of now he is sticking to wanting to get rid of them all.

The properties and attorney are in Ohio and I'm in California. I have no trust for this attorney and will not ever be using him on any deal because of the 'fear' aspect he seems to be taking and what I consider to be a lack of professionalism in being unable or unwilling to explain the 'why's' of what he is telling me. I am going to contact another attorney and get his opinion.

I am trying to learn as much as possiblr about everything real estate in Ohio just for future reference even if this deal never happens.

Original post:
I understand how it's silent and that it's not an assumption. I love sub2. What I don't understand is the attorney saying sub2 is not done in a particular state. The attorney may be referring to concerns about creating a mortgage agreement with the seller. If you get a deed and take over payments, there's no "security instrument" for the seller, unless you wrap it with another mortgage or CFD.

K Marie Poe...I figured you understood but was just trying to clarify. I don't know why the attorney is telling me they can't be done in that state. My plan was to get the deed and have a signed purchase contract as you stated. He has traditional mortgages on the properties, not CFD. This attorney also told me I couldn't execute a purchase contract myself unless I wanted to get in trouble doing real estate without a license and stood his ground even after I said "Even as a principle to the transaction"? He said "Nope, not unless you want to get in trouble" I have never heard of that ANYWHERE. Funny thing is the first two homes I bought out there were cash sales and the seller wrote up the purchase contract after we verbally agreed to terms, then we had an attorney draw up the deed and do the title work...all with no problems. I will be talking to a different attorney this week. Thanks for all your input on this.

I'm buying to hold as rentals in a market that is hard to sell in so I market to distressed sellers and have found/created owner financing when the seller needs to unload the home and doesn't see any other options. I also just got my first potential 'subject-to' deal this way but I'm still working on that one.

K Marie Poe...The "subject-to" would be silent...not an assumption of the exsisiting loan but I still couldn't get the attorney to clarify why the state does not allow them. I find that hard to believe and I will be talking to anither attorney soon but wanted to get some feedback from here also. I am currently getting ready to close on a land contract deal but it is a very low dollar property and the rents I receive during the payment period will be 3 times the amount I am paying for the property and a few repairs. That property is owned free and clear by the sellers. Also, the deed is being drawn to be held by title until payments are paid in full. Even if the sellers didn't uphold their end of the deal and give me the deed after I made the payments (unlikely) I would still have made several thousand dollars profit in the meantime.

Joe Gore - Guess I wouldnt be protected if the wind blew it away since the insurance is impounded into the sellers loan and therefore in his name. As for the loan being called in..these are low value homes with small mortages...if I HAD to I could pay off the loan...and get insurance in my name.

And thanks Mike Nelson....I am going to further explore land trusts.

I have a seller with multiple properties he wants me to just take over payments on. I contacted an attorney and was told there is no such thing as 'subject-to' in that state and I would have to do a land contract. My question is: If this guy is willing to sign his property over to me via a deed, couldn't I just have him deed it to me and I stsrt making his payments to the lender? I know it risks having the contract called in but even then attorney said that would be rare as long as payments are being made. So why go thru the hassle and expense of doing a land contract vs just having the seller sign the deed over to me?