Larry Olson
Active 2 days, 10 hours agoForum Replies Created
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Jay,
Sounds like you have the problem solved.
Bill,
Agreed, I can’t have HOI on a property I sold, but can buy my own forced place insurance to protect my loan. And I “may” be able to go to the buyers insurance co. and post pay the insurance to bring it current and the bank will refund the forces placed insurance. However, that doesn’t always work, as some insurance companies will cancel the policy and will not let you bring it current. Had one like that last year.
Now, you can hold property in trust (prior to selling it) and sell the bene interests to the new owner but you be the trustee (or your friend is the trustee). As property manager or trustee, you get HOI on the property in the name of the trust, naming others as additional insured (bank, new buyer), and have a clause in your sales agreement that says you remain as trustee until your buyer pays off the loan. That way, you’re in control of everything.
However, glad things worked out well.Interesting deal.
I’d try to find a local investor to buy me out. 1:30 is outside of my comfort zone any more. I might consider carrying some paper for a higher price, perhaps $90K, giving the new owner the opportunity to fix and be well under market when done.
Of an all cash deal at $65 like Wede would do.I’ve had a few similar, out of town, foreclosure. With one I joint ventured with another investor to do the rehab and we’d subtract their rehab cost, and split the upside after an agreed upon strike price, when we sell to a retail buyer. My investor doubled their money, and I got a much better net price and did no work.
Interesting problem.
First, if I were able to generate $5 a month and $20,000 lump sum in 30 days, I would have not been employed at all, so no need to save W2 income.And, I’ve never been so poor that I didn’t have at least a years worth of a liquidity that I could live off of for a year. And I have always argued to live well below ones means regardless of what the income is.
It would be a real challenge to meet those goals in this time, but could be done, perhaps will a little luck. In my neighborhood, there are no really good deals, but it’s so easy to sell something that one could get a house under contract and just sell their position retail. Or do a highest bidder sail to get the job done.
And, one can get into property management with the “Master Leasing” program that Dave Tilney teaches, but pretty hard to get a substantial income in a few months…. but does work.
You can do some flips, but in this market, the numbers just don’t work and you end up working for a “wage” and not much of an investment…. and hard to make it work. But you can make a few bucks, but you can also loose some bucks, and you’ll need some cash to do this.
If they were in my neighborhood, I’d certainly take them subject to… and might add in a few dollars to help the deal. Unless Congress changes things I’ll be able to evict on Jan 1, so I will file the eviction shortly. I’d talk to the tenants and tell them that they are still not off the hook and must still pay the back rent, but wouldn’t expect much. I’d probably offer them cash for keys on the 1st as an incentive to move.
If they fought the eviction, I’d go to the bank and ask for interest forgiveness and also file for some help as a small business.However, if I could get title to and only with $30k equity, the rents are good enough to carry on and with little down, would make a good investment.
I agree with Erik, our country is heading down the tubes. Hopefully we can recover in time.
I don’t believe the Gov will bail out the evictions or foreclosures, and certainly not the failed businesses. I’m staying strictly with SFHs, buy and rent. They have been the best proven part of RE investing over time. (Just read Jack Miller). Very few flips, unless they’re killer deals. And all of that perhaps later in 2021 or 22. We’ll see.
While MH and RV parks make sense in some neighborhood, they don’t in mine.
Interesting comments by Dent.
Who really knows what will happen? Certainly we’ll have ups and downs. How much?
However, there are a few things that are clear. We have a LOT of failures, foreclosures, tenants put on the street, failed businesses, people out of work. And the effect has yet to hit. So, how will this affect our real estate market?
Also, the fed has spent a TON of money and our national debt is at record levels. Unfortunately, mostly wasted expenditures.
But interest rates are at an all time low. In many areas housing sales are booming at high prices, often with bidding wars. Labor (of the people still employed) is higher that hell. Look at construction labor, rates to fix your car, etc. Of the restaurants and bars that have reopened, their food/drinks are higher. Building materials are high.
Rents in a lot of neighborhoods are way up.
So what do we make of this? Looks like the recipe for high inflation and a recession. But what will be the sequence of events?
Of my RE friends, most are taking a conservative cash position. Certainly not buying at these high prices, nor getting into bad debt. Nothing wrong with picking up low interest, long term debt however.
Gut feeling: Housing will soften, prices in some areas will drop. This will happen before we see the inflation. However, RE is a really localized thing, so your area may be different in mine. However, a lot of folks think there will be some good opportunities in the next 12 to 24 months.
For now, I got into some oil royalties (not stocks). Not for the faint of heart but it’s fun. Hoping to cash in on that prior to buying a few more house later on.
Would like to hear other thoughts…..
Jackie,
Agree with you in that a call to the owner makes a lot of sense, and perhaps several calls. The goal would be to get to know the owner and get them to like you. Then you can deal.
Personally, I’d rather not take title, but sell to an end user that would do the rehab, or another investor in the area. I’m sure it wouldn’t be have to find an investor and make it worth his while and I’d be happy with a small but clean profit.
Agree with multiple offers, and I could do either with cash of terms. The, preferably assign the contract and have no money or time in it.
I would NOT get involved in renting it or rehabbing it. Too far away and there’s plenty of renting and rehabbing in my own back yard. I just don’t do out of town deals anymore as they rarely make much sense. Now, if there were a really good investor friend there, I’d do a joint venture. And I’ve had good experiences doing them. And, I’d have no problem giving them the bulk of the profit as they would be doing all of the work. Something I have an aversion to.
