All Forum Posts by: Tom Mole

@Marcus Kennedy  based on what you posted it's sounds like it could be a worthy project provided that you're going to ultimately going to get legal control to the prodigal lot. Get the property under contract then start your due diligence in earnest. You ought to be able to include a contingency for unclouding the title so you're protected in case this turns into a hot mess.

It doesn't seem like it has to be a big problem provided that the missing lot isn't part of someone else's legal description. Just make sure that you know what you're getting before clearing contingencies.

I like your idea of going in at 1/2 of asking. After they know what they're selling, so you might just get accepted. Get it under contract, then let's figure this thing out.

Luck is for rabbits, I wish you success!

Hi @Marcus Kennedy

Aside from the title issue, what does the rest of the deal look like? Are you looking at buying it as a short sale, at auction or REO? Are you planning to hold it or flip it? Is there enough profit in it to pay for any added costs the title problems may cost? If it does look like a killer deal, then get it under a well structured purchase contract with a price that takes into account everyone else's fear about getting into this kind of deal.

You see, there's leverage in other people's fear and you don't have to be afraid. You've got the BP community on your side. Since I'm not an expert on Alabama law, allow me to share with you a link get you started on quiet title action, which exists to clear up cloudy title. You might want to quick study the topic, then run out and chat intelligently with a friendly title agent in your neighborhood.

If it's a deal, get it under contract. Be NOT afraid! When you write your contracts correctly you can always back out, if things are a bigger mess than BiggerPockets can help with. Boldness wins! Keep us posted.

All the best in 2015.

I just joined the Connected Investor webinar about 2hr ago. Like @Matt Rodak I kind of stopped listening after the first about 1/2 hour. It seemed to be going a rather predictable way; no actual education, just a pitch for an expensive package. @Tammy Watanabe I hope you got your money back. $1497 could be better spent just as @Jerred Morris said. 

This seems like scam. "The greatest transfer of wealth in history" is exactly, word for word, what I heard said two years ago at a Rich Dad seminar. Ironically, according to Connected Investors, Robert Kiyosaki's advice is wrong. I suppose that means CI's advice is wrong too for the same reasons.

Bottom line, people, set down the checkbook and back away slowly. If you were thinking of using a credit card, RUN! In my humble opinion this is NOT where you want you want to put your hard earned money.

Happy New Year!

@Gwendolyn Davis, what would you like to do to help the mortgage holder? Do you have the means to make an offer on this property? Does this interest you? What are the numbers? Would the deal still work with a new "rent to own" tenant? 

Perhaps you could make offer on the property, reduced by the amount of any arrears on the mortgage, subject to the first, repay the arrears and sales-lease option the property to new tenants. Let me know if have any questions about this process. Is it true this property is close enough for you to keep an eye on?

If you do acquire this property, find a new property manager. Keep on top of things and avoid getting into the same troubles. Don't get yourself into someone else's bad deal.

Happy New Year!

@Wilson Lee, I read through the whole post. Wow! Firstly, allow me to welcome you to the BP community. You may want get your partner to create an account and join the party!

I must commend you on your focus and diligence. Most start out without a clue of where they're headed or why. You seem to have both. With that said, keep in mind that census data can be poor predictor or future reality. There's often a large gap between what should happen and what does happen. There's nothing wrong with your analysis, just temper it with a generous dose of real life. You find plenty of that in the forums.

Have you read @Brandon Turner's book, "The Ultimate Beginner's Guide to Real Estate Investing". If not, do so. It is HIGHLY recommended!

Become active on the forums, make a lot of friends, ask a lot of questions and listen at least twice as much as you speak. You'll be on your way to the financial freedom you're looking for. You might look into another book by Brandon Turner, "The Book on Investing in Real Estate with No (and Low) Money Down". When folks tell they plan to start invest as soon as they've saved enough money I always say "why wait?" Failure is "I can't afford it". Success is "how can I afford it?"

I could bore you with plenty of techniques you could look into doing right now, but that's likely not what you need at this point. I'd rather see you eliminate "no contacts, and very little knowledge" from your intro. Get contacts and build knowledge. When you have some of each, forget about "no money" and let's just get started. In fact start, if your serious, by sending me a colleague request. 

Great beginning! Can't wait to see you succeed.

Happy New Year.

Disclaimer: I don't know anything about foreclosure law in NC. Do you homework.

That being out of the way, let me suggest. Have you talked to the lender? Would they be interested in selling the note at a discount? Buying the note at a discount would be similar to buying the property short from the bank's point of view. Your work pal could then sign the deed to you in lieu of foreclosure. Problem solved.

If there are any junior liens, a short sale could be a problem as the lien holders may deny the short sale. If you buy the house by the process above, you may still be liable for the junior liens. If that's the case, consider foreclosing to gain title. That will normally eliminate the junior liens.

Be creative. There is very often a way.

Happy New Year.

@Dev Horn, that sign just cracked me up. Ironically, the TV is running the background and they had an WeBuyUglyHouses commercial. I got the same feeling from the TV ad as I got from your sign. I just had to laugh.

@Karl Krentzel whilst I disagree with bandit signs in my heart and they're generally illegal, they are legal enough in some areas and fairly well tolerated in other areas. Beyond that they can be effective. You have a point when you say that newbies need to reach people quickly. They may not have a lot of choices, besides hanging signs is what their guru told them to do. They're just following orders. Maybe we ought to teach them to better methods.

Perhaps this is why most people seem to dislike bandit signs (including our BP hosts, @Brandon Turner and @Joshua Dorkin). The signs indicate an unsophisticated, newbie investor trying to take advantage of distraught homeowners. Let's face it the I Buy guy is ALWAYS going to make a pretty crappy offer to the homeowner. All in all there's something stinky about bandit signs. It's not that they don't work, but perhaps they shouldn't.

It's just my stupid opinion. No disrespect intended.

Happy New Year!!

@Vinny Gaines, I have never seen anyone paid to leave and auction. Mostly the bidders just punch it out until the bidding is over and one walks away signing checks. I don't think I'd consider being paid to not bid as an investment strategy, but...if you can make it work, more power to you.

Personally, I like the more realistic strategies of buying short sales, junior liens, REO's or partnering with homeowner and rehab. No disrespect intended, but there are plenty of ways to make money on foreclosures. I wouldn't count on being paid to leave the auction. Just saying....

Happy New Year!!

Sounds awesome, @Jeff Greenberg. Where do I sign up?

@Sean Hurwitz, I live in the SFV. Apparently @Brandon Turner forgot about me. :D  

I'd love help, provided the moderator doesn't get disapprove of my endorsements. You might like some of these REIA's:

Black Belt Investors - Norco

San Fernando Valley Real Estate Club

Club In Action - Burbank

Commercial Real Estate Investors Mastermind

Sam's Real Estate Club

Best LA Real Estate and Investment Club

FIBI-Pasadena

InvestCLUB LA by InvestCLUB for Women, but men are welcome too. 

I could suggest a number of Cashflow Clubs as well, if you're interested. You can meet great people and learn new ways to think about investing at these clubs. Let me know if you'd like more suggestions once you've burned through this starter list.

You may want to take a look at something I posted in another thread by another cash buyer/rehabber, How to Get in Touch with a Wholesaler in LA. Hopefully you find it useful.

Happy New Year!!