All Forum Posts by: Tom Yung

@Mark Albano 

I myself, had bought TH before for rental . In most cases they are very similar to SFH in terms of investment; Except HOA fees.

BUT watch out for TH that has rental or age caps, that means they only allow certain % of units for rental, the rest has to be owner occupied. Or some of them has a age 55 restriction. This makes it very difficult to lease. 

I also do not like to buy TH older than 15 years old, as HOA fees are generally much higher than the newer ones because of the age.

@John Pruner 

Sorry that this happened, but thanks for sharing; Most human are so trustworthy & had been taking advantage by few bad apples.

You mentioned that you need serious rehab to put this property back to rent ready condition. You also mentioned that rehab will be 15K. I am assuming that your partner is a handy man that can put his labor on this JV.

If not, based on 15K; I do not think you can go too far with it.

1) Call the agent that listed the house before & see if he can share you some info & pictures to determine the condition &  requirement for the rehab.

2) If the house is vacant now for a long time, the normal landlord insurance will not cover it. Go get yourself a (vacant & rehab/construction) period type of insurance. I can not remember the name at this time. 

I strongly suggest that you take on both @Rick Baggenstoss & @David Begley offer & send them PM, so they can assist you to sort out the mess. I wish you all the best. 

Sort this road block out first; before it drain you out further more financially & mentally.

@Amber Ponte

Just like @Ned Carey & @Jay Hinrichs has mentioned. Purchasing TLC has been glorified so much, a lot of newbie get burnt from it. Be very specific as state statue & local knowledge. Sometimes depending on the state & redemption period. You can lose money even if you WON a certificate. 

Prepare yourself for this kind of RE investment. It sounds very simple, but there are way more trickier than  it sound. It can be very rewarding if you can master it.

@Pyrrha Rivers

Congrats, Thank you for sharing with us your first.

So Happy with your action taking decision & burning desire to make it happen. Also glad that your daughter is working along side with you. 

It's how wonderful & lucky that we have BP as a community. It's almost impossible to have so much info & communication passing along without BP. You are in Japan, I am in Canada @Rick Baggenstoss in GA. @Wendell de Guzman in IL. Thanks to @Brandon Turner & @Joshua Dorkin to make this international connection happening.

@Chris Masons

The banks are too slow to respond in most of the time,so they will usually assess the situation after some other bidder won the bid.

Then the asset manager will redeem the right from the winner and foreclose on the former owner. .All these extra costs are added onto the original balance of the mortgage. & now it becomes REO.

When the winning bid is too low, the property is usually not worth the effort of adding 20% of the winning+ cost of foreclosure onto the property. It is easier to go after the previous owner & claim insurance on the mortgage. At times it's better off for the bank to write it off from the book.

@Darrin Mayfield 

GA has a one year redemption, there might be 2 outcome from the auction.

Either way, you will not be & cannot be evicted.

If there are a winner for the auction, he cannot stepped onto your property and collect rent from you. It will be consider trespassing in GA.

1)If the winning bid is close to the amount of the mortgage( if there are any). The  bank may step in & pay off the winner bidder & foreclose on the owner after. 

2)If the winning bid is too small for the mortgage holder to consider, there will probably be a foreclosure from the winning bidder. But that will be one year & 45 days away. 

So in either case, you can stay in the house within your lease term & keep paying rent, nothing will be happened.

If you really like the house & if you can win the bidding. Tax Deed title will wipe out all mortgage & junior lien in GA. So you can buy yourself a inexpensive HOME.

@Scott Pigman 

You can recover all basic repairs(like leaking roof, broken windows..Etc) to the property from the previous owner during the period of redemption,

 you will lose out on all rehab(granite counter top) if the owner redeems during redemption.

If the suit file during the year that the previous owner has file for homestead or farm land,  the redemption period is two years. otherwise it is six months.

@Ryan Dossey I think suit & tie are a thing of the past for the REI buisness, unless you are going to a business function, or your work environment requires dress up like a mortgage manager in a bank.

Covering up tattoos is a smart move of yours. overtime, when the client knows you further.Then  It may turn into an art.

second to @Jay Hinrichs comment on PM.

I will add to choose the one that are more specialized in the local area & the field of practice. Some PM took over too many areas than they can handle.

A SFH PM may have difficulty & manpower to handle a 100 unit complex.

@Wayne Brooks

I will say tax lien investing at today's market is just like you prescribes the way @Jerry K.  does,

You got to have "larger amount of money & good systems".

I myself do not see any investors with limited cash can get a good living out of it. Unless he/she get a good property out from the lien each time.