comfortably numb
Footballguy
I head that banks are obligated to let you know of any current homes that are in foreclosure. That it is public record.Is there any truth to this?
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*** Official Real Estate Forum *** (3 Viewers)
- Thread starter jeff_eaglz
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Jeff Pasquino
Footballguy
Get 3-5 estimates.Ask the lowest one why his was so low (if out of line).
Take the one you have the best feel about - not necessarily price. If he's really high, show him other estimates and tell him if he can get in that ballpark the job is his.
Also - get examples (or go see) his work.
Paying double isn't a big deal if you're getting your money back in a year. Go for it.
(Also you get 2 months rent extra as you're done sooner).
cosjobs
Footballguy
Make sure their bids include pulling all permits and final payment is not made until you have a CO. (cert. of occupancy). If you bids ar the $11K range, it should only be a one or two month job. Every month it takes costs you $500-700 in lost rent. Consider an early completion bonus and penalties for overruns on time.
If you buy the stuff yourself, you will likely get better quality (if you have the knowledge to pick lumber and other materials) and control the project, I recommend doing this. Just make a run to HD or Lowes every night so he has materials the next morning.
Remember you can get free toilets in Austin and rebates on installation- check the city website.
cosjobs
Footballguy
In today's Dallas Morning News biz section, I read an interesting article on foreclosures.
Evidently last year they were at record lows, but have this year already exceeded last years figure with LOTS more expected in the next few month. It seems the ARMs everyone went crazy on a while back are starting to come due and many folks are finding they cn no longer afford their notes.
Looks like lots more buying opps to be coming along very soon
Evidently last year they were at record lows, but have this year already exceeded last years figure with LOTS more expected in the next few month. It seems the ARMs everyone went crazy on a while back are starting to come due and many folks are finding they cn no longer afford their notes.
Looks like lots more buying opps to be coming along very soon
Jeff Pasquino
Footballguy
They are a matter of public record - the "trick" is finding that record.That's what RE investors know how to do. Go to the county courts (or electronically mine the data) and find it.
These lists are tough.
As far as banks - in a hot RE market (like the last 2-3 yrs) they are selling them thru a RE agent. That may change if they get swamped with more properties. They have to get rid of them ASAP, but they're still getting good $ for them as of last year. Deals didn't really exist for REOs (Real Estate Owned by banks).
You really can't call the bank - they want no part of you / that unless you're a real "player".
Jeff Pasquino
Footballguy
That's 50% a year - yeah, that's a no-brainer.
Ten Yard Fight
Footballguy
I put 1% down on my 1st house in 1998. The original appraisal was 113,500. I've paid the mortgage down to 100,000. I need it to be worth 125,000 to get to 80% LTV and rid myself of the $42 MIP monthly premium. You'd think it would have appreciated the necessary 11% in 7.5 years, but I don't think people in my neighborhood are getting $125,000 for their houses that are just like mine. I don't think I could ask more than $115,000.
Would it be worth it at all for me to approach an appraiser? I hear about inflated appraisals all the time. Can I tell an appraiser what I need to appraise for? Can he tell me if that's possible before I pay him?
Thanks
Would it be worth it at all for me to approach an appraiser? I hear about inflated appraisals all the time. Can I tell an appraiser what I need to appraise for? Can he tell me if that's possible before I pay him?
Thanks
Homer J Simpson
I don't push
To nix the PMI, you'll need to use an appraiser approved by the lender...therefore they probably won't bump the numbers for you. At least that's how it's supposed to be done.
Jeff Pasquino
Footballguy
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Jeff Pasquino
Footballguy
Here's a thought.1. Get the appraisal.
2. See what it is - say $115K even.
3. Ask the lender "if I pay it down to 80%, will you waive PMI?"
4. If yes, then do the math.
Ex: 115K x .80 = 115-23 = 92K
You owe 100K.
So you'd need 8K to get rid of PMI.
You are paying $42 a month, 0.55% of 8K. That's 6.6% a year.
If you could get 8K at less than 6.6%, it would be worth it to do.
The example works better if you only have to pay $5 or $6K.
Ex 2: $119K appraisal
$119 x 80% = 119 - 23.8 = 95.2 K
Pay $5K to lower it down.
5K vs $42 a month is 0.84% a month. That's 10%. Surely you can find $5K for 10% or less?
The only issue here is the time to repay the $5-10K you'd borrow, and of course a source of the $.
Just a thought.
Ten Yard Fight
Footballguy
There is, since I bought the house after the law was passed, they MUST nix the PMI when I pay down 22% of the balance. Without extra payments, that will be 2/1/2012
Or, I could make a $12,000 lump sum payment right now, that would show them!
Ten Yard Fight
Footballguy
Thanks for doing the math for me Jeff, that's very helpful. I knew paying it down probably wasn't a viable option, but I wasn't sure at which point it would be viable. I'll have to shell out some money for the appraisal too, right? One of my original questions was whether or not it's kosher to approach an appraiser and tell him what you need, and ask him if it is doable. Homer is probably right though when he says I might need to use th elender's appraiser.
Random
Footballguy
I know I getting wayyyy ahead of myself here, but something I haven't been able to put my finger on is the best way to "use" whatever cash is made on the flip sale.
For example, say we come out ahead 20k on this property, where is the best place to put the cash so its acessable for another home. Two things I can think of (I gotta be missing the obvious one):
1) Pay down mortgage. Gives you access to more cash via HELOC, but will be paying interest on this money when I use it. Reduces mortgage interest expense between flips.
2) Savings/Checking account. Earn a little interest between investment properties. Dont pay interest on the money when using it for the next property. I guess this is the right answer of the two.
For example, say we come out ahead 20k on this property, where is the best place to put the cash so its acessable for another home. Two things I can think of (I gotta be missing the obvious one):
1) Pay down mortgage. Gives you access to more cash via HELOC, but will be paying interest on this money when I use it. Reduces mortgage interest expense between flips.
2) Savings/Checking account. Earn a little interest between investment properties. Dont pay interest on the money when using it for the next property. I guess this is the right answer of the two.
Jeff Pasquino
Footballguy
Keep in mind a flip inside of a year has a heavy tax burden (40-ish %). Hopefully you have plenty of receipts / gas / expenses to offset some.Second - best use of the money? Buy another property.
If you don't NEED the $$ and are going to move it to the next one, you can investigate a 1031 exchange (defers taxes). Don't know all the rules, haven't done one. But I see it done.
Ideally you want to make AT LEAST 15% of your retail sale value as profit.
That is, if you rehab a property and sell for $200K, $30K should be profit (after ALL expenses).
Take that $30k and use about 1/2 of it and buy another with $10-15K in cash reserve. Do that one, get another $30K. Now you have $45K ($15K from 50% reserves, and 30K profit again).
Now buy 2.
Repeat - but don't get over your head. Doing more than 2 at at time can be REALLY problematic.
Figure out if you can handle 2 at a time. If ok, MAYBE try 3, or just do 2 at a time faster. Finally, with extra $ building, find other things to buy or uses for the $ (private lending, buy mortgages, investment / rental / commercial properties, etc.).
So in summary:
1. Buy 1 - sell.
2. Buy another - sell (with cash reserve).
3. Buy 2 - sell.
4. Buy 2 - sell, faster.
5. Buy 2 and repeat while buying more stuff. (Optional - do more than 2).
Option 6 is to hire someone to run more projects for you. That's how you can go a true business and turn it over to someone else (so you can relax and have them work for you).
-Jeff
cosjobs
Footballguy
Last night I was looking at Dallas COunty Sheriff sales.
On real property (real estate), as a condition of sale, the purchaser MUST sale to original owner at 125% of purchase price on demand (1st year, 2nd year 50%, none after that).
Seems to me, a smart strategy would be to find someone who was forclosed upon (on a quality property) and offer them a bonus (say $5K) to demand to re-buy their property and immediately sell to me at the 125% price.
Example- I see Joe loses a 150K house to the sheriff's sale for $50K. I tell Joe I will give him $5K if he re-claims the house for $62.5K and immed iately sells it to me at that price. That would put me in the $150K house for $67.5K total. That's higher than the auction, but also always me to better pick and choose on a more spread out time table. Waiting for almost a full year might include lots of repairs and upgrades as well as market appreciation.
On real property (real estate), as a condition of sale, the purchaser MUST sale to original owner at 125% of purchase price on demand (1st year, 2nd year 50%, none after that).
Seems to me, a smart strategy would be to find someone who was forclosed upon (on a quality property) and offer them a bonus (say $5K) to demand to re-buy their property and immediately sell to me at the 125% price.
Example- I see Joe loses a 150K house to the sheriff's sale for $50K. I tell Joe I will give him $5K if he re-claims the house for $62.5K and immed iately sells it to me at that price. That would put me in the $150K house for $67.5K total. That's higher than the auction, but also always me to better pick and choose on a more spread out time table. Waiting for almost a full year might include lots of repairs and upgrades as well as market appreciation.
Jeff Pasquino
Footballguy
Bump.
Give me something to work with here.
Give me something to work with here.
Jeff Pasquino
Footballguy
This makes no sense to me.I'm not familiar with this law, but as I understand it, if the original owner demands his house back THEY have to pay YOU 125% of your sheriff's sale purchase price. In the 2nd year, they'd have to give you 150%.
This renders your example incorrect.
Redwes25
Footballguy
Not sure if your scheme works (or makes sense) but I do know that a number of states have laws like this. The laws require the purchaser at a foreclosure sale to sell to the original owner of the house (the guy that defaulted on his loan). Not every state has such a law and the ones that do are all a little different. I actually think that some states allow the old owner to purchase the property at the exact purcase price with no additional percentage as you described. I would think in states like these that buying properties in foreclosure sales would be risky. Of course, people's whose properties got foreclosed on usually don't have the cash to purchase their properties and probably don't even know their rights.
cosjobs
Footballguy
Maybe I did not explain well.
Joe gets forclosed upon.
Mike buys his house at auction for 100K.
Reviewing the forclosure records I see this is a great deal.
So cosjobs offers Joe $5k, if Joes will buy his house back from Mike for 125K and then sell immediately to cosjobs for that 125K.
This kind of screws Mike, especially if he has put any money into rehabbing the property, but foreclosures are always about someone getting screwed...
=========================
Here might be an alternate, similar method of backdooring a foreclosure:
In Austin, tax auctions happen regualrly, but the property owner can buy back at the auction winners price plus 18%.
SO in this case Joe has $20K in back taxes.
Mike buys his paper and tax burden on the courthouse steps for 20K. Joe has a time period to pay back Mike plus the 18% or Mike gets joe's house.
I get a list of the Joes in zip codes I like and offer to pay off their Mikes plus another amount ($5K?) for the title to Joe's house. If joes losing his house anyway, why should he care who gets it. I think he would be motivated to get it to the guy sticking $5k in his pocket.
Joe gets forclosed upon.
Mike buys his house at auction for 100K.
Reviewing the forclosure records I see this is a great deal.
So cosjobs offers Joe $5k, if Joes will buy his house back from Mike for 125K and then sell immediately to cosjobs for that 125K.
This kind of screws Mike, especially if he has put any money into rehabbing the property, but foreclosures are always about someone getting screwed...
=========================
Here might be an alternate, similar method of backdooring a foreclosure:
In Austin, tax auctions happen regualrly, but the property owner can buy back at the auction winners price plus 18%.
SO in this case Joe has $20K in back taxes.
Mike buys his paper and tax burden on the courthouse steps for 20K. Joe has a time period to pay back Mike plus the 18% or Mike gets joe's house.
I get a list of the Joes in zip codes I like and offer to pay off their Mikes plus another amount ($5K?) for the title to Joe's house. If joes losing his house anyway, why should he care who gets it. I think he would be motivated to get it to the guy sticking $5k in his pocket.
Jeff Pasquino
Footballguy
Mike (and his attorney) says:
:crickets:Lawsuit follows.
Alternate plan (also bad):
Give Joe $125K to buy out Mike. (You have to in order for Joe to buy the house back. He has to HAVE the $).
Joe:
Joe takes the $125K and runs.Also - where's the $125K coming from? No lender will want any part of this.
Nice try - but this will blow up in your face.
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Jeff Pasquino
Footballguy
Never, EVER be afraid to tell someone what you're doing (or attempting to do). If you can't run it through a lawyer - your deal will fall apart and you'll be left holding the (empty money)bag.
Some attorneys, title companies, and/or lenders will say "you can't do that". That means either (1) it is illegal or (2) they don't understand. More often it is (2) than (1), but it can be both.
Find a local RE mentor at a RE club. I do it in Maryland because I know my stuff locally. I'm lost in Texas or many other states. I can EVALUATE any deal anywhere. I can't speak to legal issues in some states.
Maryland and North Carolina have passed anti-investor foreclosure laws recently. I bet you didn't know that (not you BnB).
Some attorneys, title companies, and/or lenders will say "you can't do that". That means either (1) it is illegal or (2) they don't understand. More often it is (2) than (1), but it can be both.
Find a local RE mentor at a RE club. I do it in Maryland because I know my stuff locally. I'm lost in Texas or many other states. I can EVALUATE any deal anywhere. I can't speak to legal issues in some states.
Maryland and North Carolina have passed anti-investor foreclosure laws recently. I bet you didn't know that (not you BnB).
Norman Einstein
Footballguy
do people actually give up their homes for $20k in back taxes? this makes no sense...they must be extremely horrible money managers
cosjobs
Footballguy
Mike (and his attorney) says:
>>>> Maybe I am wrong, mistaken or ignorant to real estate law, but I in no way see anyhting illegal in this. I am buying Joe's property from joe at his reclamation price and paying Joe $5K for the privilege. Sleazy? Maybe. Illegal? I don't see it.
Alternate plan (also bad):
Give Joe $125K to buy out Mike. (You have to in order for Joe to buy the house back. He has to HAVE the $).
Joe:
I have the 125K, contracts thru a re attorney and a notified and waiting to process title company. Again it may be illegal but I know the law and contracts pretty well and I do not see how. I am not meaning to be argumentative Jeff, mainly curious as to why such an action would be illegal.
Nice try - but this will blow up in your face.
You know more about this stuff than I do, so maybe you are right. But in past ventures I have found thinking outside the box can be very profitable and open untapped opportunities. I will defer to your superior knowledge on the subject matter, but would really like to know more of the "why?".
Edit to Add: To me this seems very similar to Mike watching the code courts and cutting a deal with a desperate property owner to prevent his being arrested.
:crickets:Lawsuit follows.
>>>> Maybe I am wrong, mistaken or ignorant to real estate law, but I in no way see anyhting illegal in this. I am buying Joe's property from joe at his reclamation price and paying Joe $5K for the privilege. Sleazy? Maybe. Illegal? I don't see it.
Alternate plan (also bad):
Give Joe $125K to buy out Mike. (You have to in order for Joe to buy the house back. He has to HAVE the $).
Joe:
Joe takes the $125K and runs.Also - where's the $125K coming from? No lender will want any part of this.
I have the 125K, contracts thru a re attorney and a notified and waiting to process title company. Again it may be illegal but I know the law and contracts pretty well and I do not see how. I am not meaning to be argumentative Jeff, mainly curious as to why such an action would be illegal.
Nice try - but this will blow up in your face.
You know more about this stuff than I do, so maybe you are right. But in past ventures I have found thinking outside the box can be very profitable and open untapped opportunities. I will defer to your superior knowledge on the subject matter, but would really like to know more of the "why?".
Edit to Add: To me this seems very similar to Mike watching the code courts and cutting a deal with a desperate property owner to prevent his being arrested.
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Mike Anderson
Footballguy
Bringing this up so I can respond to it, I just don't hae the time right now to do it justice.
Homer J Simpson
I don't push
Mike, check your PM's.
BassNBrew
Footballguy
Code:
Texas—Senate Bill 629 : The law deals with “executory contracts” which is a fancy name for an agreement like a land contract where you sell a property but don’t give the other party a deed that they record. AND according to this proposed legislation a lease option is an executory contract. * Big fines for missing out on some of the detailed reporting and disclosure requirements that are WAY over the top… both in the amount of the fine ($250 per day)* You buyer, even on a lease option, may demand you give them title to the property and have you take a promissory note from your buyer for the amount you owe them unless you give them written notice the “legally justifies” why you refuse to do this within 10 days of receiving their demand and promissory note to convert the deal…if you are late, then you are liable for damages of $250 PER DAY for a late response…* The list goes from there. The real zinger is a line that says if you aren’t in compliance that you could be liable to have to repay all money paid to you from your buyer.Mike Anderson
Footballguy
Yes, Often.
Mike Anderson
Footballguy
Couple of thoughts:If this is legal, figure out if you can just purchase Joe's option. It would be alot cleaner to buy paper.
Secondly, at least here in IN, You don't own a tax sale property until Joe has run through all his options. Example, Mike buys Joe's house at Auction, Mike has only bought a Money investment for the first year. Joe has a complete year to continue to LIVE in the house, and pay it back at any time. Assuming that he's not foreclosed on, or something else puts him out of the house, the guys with a Mortgage that is not escrowed are the nightmare. In that case, when the Bank calls for the Loan in full, Mike has the right to pay off the loan in full, and add that figure to Joe's repayment total.
You really only want to buy at the tax sale if you are confident that there are no Liens against the property, so get familiar with the recorders office.
Tax sales can be unbelievably profitable, and they can be a total nightmare. With Joe living in the place, knowing he is going to lose it, more sabotage than you would think occurs. Joe is a slug to start who can't pay his taxes (pretty much none of this applies if you are talking about an older couple, widow, something where they love their house, have put in years living in it, and couldn't stand to see it damaged), however, Joe Six-pack, bouncing in and out of crappy jobs, a Divorce or two because they always fight about money, can destroy the home. If he is losing it, then screw everybody. Mike is just the guy making a RE transaction, but Joe Six-pack sees everyone as the enemy. Every bit of Copper in the house is pulled once he runs out of things to pawn. The furnace is pulled or destroyed, Walls are removed, with the Wiring pulled and cashed in for the copper in it. Windows broken, hot water heater pulled, everything.
Joe Six -pack is going to rail against the "man", and Mike is part of the "man"
Now, remember that my only experience is with Indiana.
Now, Mike Owns the right to the home in one year from Purchase if Joe doesn't repay. If Joe repays in the first 3 months, Mike gets 5% above what he bid. 10% in months 3-6, and 15% from 6-12 Months. After 12 months, the county gives the property to Mike.
There is absolutely a strategy to seeing a Home worth $200K that has $8K in back taxes And has no Notes against it of any kind, and bidding $20K. If they couldn't pay $8K, they aren't going to be able to come up with $20K. No way. In a Year, they might get $8K, but not $20K. I have seen extremely valuable properties and Commercial lots go $100-200K over the minimum bid required.
About every year, My Neighbor gets $8-9K behind in Taxes on a Brick 5-plex worth over a couple hundred thousand, that I would give my eye teeth to own. Every time I have geared up to go in and bid the thing to the point I know he can't get it back, and since it is loaded with tenants, he wouldn't be able to pull off crazy damage, nor would he, it's not in his nature. I have never gotten the chance, as he always clears it in the 11th hour, but one of these years. If I every get the chance, I don't care if the top bid is $20K (It wouldn't be, just as an example), I would bid $50K. I wouldn't be bidding just to win, but to have the repay at a price that the owner can't clear it.
Anyway, that is Indiana, I can't speak to Texas, but do make sure you have your Ducks in a row, and completely understand the process. Best thing you could do if all of this is legal (and works the way you think it might, no way do I think that is the case) but just buy Joe's option on the property.
Bristol
Footballguy
This may have already been covered, but I am new to the thread.
Are there any good books that you would recommend for someone who is interested in starting out in real estate investing? There are a lot of people out there who have written books, but I defer to you as to which one would be most beneficial and helpful.
TIA
Are there any good books that you would recommend for someone who is interested in starting out in real estate investing? There are a lot of people out there who have written books, but I defer to you as to which one would be most beneficial and helpful.
TIA
Norman Einstein
Footballguy
like i said...they must be idiotic...if i've got a 100k house with 20k back taxes and am looking at losing my house because of it...either look for an equity line or sell for 70k or so and pay off the taxes...
letting it go for nothing is moronic...
cosjobs
Footballguy
I just picked up:"The Pre-Foreclosure Property Investor's Kit" by Thomas Lucier and
"Make Money in Short Sale Foreclosures" by Carey and Carey
The former was very highly rated and the latter was hot off the presses. I will review them later after I read them. Both are reviewed on Amazon.
Jeff Pasquino
Footballguy
Mike, it happens EVERYWHERE.Tenants love copper pipes. I don't know how they know about this "market", but all sleazebags seem to know this. Tearing apart walls to get copper pipes is Deadbeat 101 for these people. I see it in MANY derelict properties.
I like thinking out of the box, so keep at it cosjobs. Just run this buy someone you can trust (or find some RE investors and ask who's the best RE attorney around).
Keep us informed if this flies, but I see potential holes and pitfalls along with Mike.
Mike Anderson
Footballguy
All Sleaze ball deadbeats LOVE copper and Aluminum. I've seen entire houses stripped of the Aluminum siding in a single day in some of the rougher neighborhoods where it's renters, druggies, and deadbeats as far as the eye can see. No Neighbor ever seems to question a Crew out pulling the siding, because they don't care either.Even Galvanized is starting to climb in price.
Tenants love copper pipes. I don't know how they know about this "market", but all sleazebags seem to know this. Tearing apart walls to get copper pipes is Deadbeat 101 for these people. I see it in MANY derelict properties.
I like thinking out of the box, so keep at it cosjobs. Just run this buy someone you can trust (or find some RE investors and ask who's the best RE attorney around).
Keep us informed if this flies, but I see potential holes and pitfalls along with Mike.
The best news stories are where the slug kills himself trying to steal live Copper electric lines.
However, in this case, it's the former Homeowner who is still in "his" house, and he will be damned if anyone is getting anything from him. Really, his incompetence with money and lack of control of his life, but that's not what he will tell his buddies bragging down at the local dive of a Bar.
I'll buy a LLs property at the tax sale, but I don't want a Homeowners property at a Tax sale. The LL isn't going to care like the Home owner.
Mike Anderson
Footballguy
Executive Order: Protecting the Property Rights of the American People
By the authority vested in me as President by the Constitution and the laws of the United States of America, and to strengthen the rights of the American people against the taking of their private property, it is hereby ordered as follows:
Section 1. Policy. It is the policy of the United States to protect the rights of Americans to their private property, including by limiting the taking of private property by the Federal Government to situations in which the taking is for public use, with just compensation, and for the purpose of benefiting the general public and not merely for the purpose of advancing the economic interest of private parties to be given ownership or use of the property taken.
Sec. 2. Implementation. (a) The Attorney General shall:
(i) issue instructions to the heads of departments and agencies to implement the policy set forth in section 1 of this order; and
(ii) monitor takings by departments and agencies for compliance with the policy set forth in section 1 of this order.
(b) Heads of departments and agencies shall, to the extent permitted by law:
(i) comply with instructions issued under subsection (a)(i); and
(ii) provide to the Attorney General such information as the Attorney General determines necessary to carry out subsection (a)(ii).
Sec. 3. Specific Exclusions. Nothing in this order shall be construed to prohibit a taking of private property by the Federal Government, that otherwise complies with applicable law, for the purpose of:
(a) public ownership or exclusive use of the property by the public, such as for a public medical facility, roadway, park, forest, governmental office building, or military reservation;
(b) projects designated for public, common carrier, public transportation, or public utility use, including those for which a fee is assessed, that serve the general public and are subject to regulation by a governmental entity;
c) conveying the property to a nongovernmental entity, such as a telecommunications or transportation common carrier, that makes the property available for use by the general public as of right;
(d) preventing or mitigating a harmful use of land that constitutes a threat to public health, safety, or the environment;
(e) acquiring abandoned property;
(f) quieting title to real property;
(g) acquiring ownership or use by a public utility;
(h) facilitating the disposal or exchange of Federal property; or
(i) meeting military, law enforcement, public safety, public transportation, or public health emergencies.
Sec. 4. General Provisions. (a) This order shall be implemented consistent with applicable law and subject to the availability of appropriations.
(b) Nothing in this order shall be construed to impair or otherwise affect:
(i) authority granted by law to a department or agency or the head thereof; or
(ii) functions of the Director of the Office of Management and Budget relating to budget, administrative, or legislative proposals.
© This order shall be implemented in a manner consistent with Executive Order 12630 of March 15, 1988.
(d) This order is not intended to, and does not, create any right or benefit, substantive or procedural, enforceable at law or in equity against the United States, its departments, agencies, entities, officers, employees, or agents, or any other person.
GEORGE W. BUSH
THE WHITE HOUSE,
June 23, 2006.
Protecting the Property Rights of the American People
I would like to see the reaction within the Local Governments, but WAY TO GO GEORGE!
By the authority vested in me as President by the Constitution and the laws of the United States of America, and to strengthen the rights of the American people against the taking of their private property, it is hereby ordered as follows:
Section 1. Policy. It is the policy of the United States to protect the rights of Americans to their private property, including by limiting the taking of private property by the Federal Government to situations in which the taking is for public use, with just compensation, and for the purpose of benefiting the general public and not merely for the purpose of advancing the economic interest of private parties to be given ownership or use of the property taken.
Sec. 2. Implementation. (a) The Attorney General shall:
(i) issue instructions to the heads of departments and agencies to implement the policy set forth in section 1 of this order; and
(ii) monitor takings by departments and agencies for compliance with the policy set forth in section 1 of this order.
(b) Heads of departments and agencies shall, to the extent permitted by law:
(i) comply with instructions issued under subsection (a)(i); and
(ii) provide to the Attorney General such information as the Attorney General determines necessary to carry out subsection (a)(ii).
Sec. 3. Specific Exclusions. Nothing in this order shall be construed to prohibit a taking of private property by the Federal Government, that otherwise complies with applicable law, for the purpose of:
(a) public ownership or exclusive use of the property by the public, such as for a public medical facility, roadway, park, forest, governmental office building, or military reservation;
(b) projects designated for public, common carrier, public transportation, or public utility use, including those for which a fee is assessed, that serve the general public and are subject to regulation by a governmental entity;
c) conveying the property to a nongovernmental entity, such as a telecommunications or transportation common carrier, that makes the property available for use by the general public as of right;
(d) preventing or mitigating a harmful use of land that constitutes a threat to public health, safety, or the environment;
(e) acquiring abandoned property;
(f) quieting title to real property;
(g) acquiring ownership or use by a public utility;
(h) facilitating the disposal or exchange of Federal property; or
(i) meeting military, law enforcement, public safety, public transportation, or public health emergencies.
Sec. 4. General Provisions. (a) This order shall be implemented consistent with applicable law and subject to the availability of appropriations.
(b) Nothing in this order shall be construed to impair or otherwise affect:
(i) authority granted by law to a department or agency or the head thereof; or
(ii) functions of the Director of the Office of Management and Budget relating to budget, administrative, or legislative proposals.
© This order shall be implemented in a manner consistent with Executive Order 12630 of March 15, 1988.
(d) This order is not intended to, and does not, create any right or benefit, substantive or procedural, enforceable at law or in equity against the United States, its departments, agencies, entities, officers, employees, or agents, or any other person.
GEORGE W. BUSH
THE WHITE HOUSE,
June 23, 2006.
Protecting the Property Rights of the American People
I would like to see the reaction within the Local Governments, but WAY TO GO GEORGE!
Jeff Pasquino
Footballguy
This statement confuses me. Is it backwards?
Jeff Pasquino
Footballguy
Bristol,Welcome to the thread.
Feel free to ask anything, we were all Noobs at one time.
As far as books - what do you want to do? Rentals? Renovations / Rehabbing (like "Flip This House" on TV)?
Knowing what you want to do (besides make $) helps steer the discussion. Also, it may evolve over time. I initially wanted to be a LandLord (LL) of 20-30 properties so I'd have $4-6K a month coming to me, but I've evolved to a rehabber and commercial investor. I'm also getting involved in paper and mortgages, so there's many ways to get involved.
Many start by finding deals and/or partnering with experienced investors. Good way to learn.
For books in general - hard to recommend as I haven't read many starter books recently. My local RE club suggests this one:
The Unofficial Guide to Real Estate Investing
I can't speak to it personally as I haven't read it in entirety, but I trust my RE club (www.mareia.com).
Welcome again to the thread.
Jeff Pasquino
Footballguy
If your financials suck, no one will lend you $$.
Jeff Pasquino
Footballguy
Pre-Foreclosures and Short Sales are both viable, but more advanced topics.Don't know either author.
cosjobs
Footballguy
The way I interpreted it was that LLs don't occupy the property and their tennants do not have the warped since of entitlement an owner might have. The tennant may trash the place or leave it dirty, but very unlikely to rip the copper wiring out of the walls, etc. like a dispossessed owner. A tennant would be facing some hefty criminal charges, but the owner probably feels that its "his" wire as he pulls it from the walls.
Last edited by a moderator:
cosjobs
Footballguy
I'd like to take a moment here to again thank Jeff, Mike, BnB and all the others for the tremendous info contained in this thread. It took almost a week, but I have finally read the whole thing and information I have absorbed is incredible. Here is an update on my gameplan and any comments/advice would be appreciated.
1. I have initiated transfers of about $10K in IRAs to a self-directed account. My plan is to use those for my intial startup costs, such as forming the LLCs and/or corps as advised by the legal council I will also hire eith these startup funds. Premliminary attorney interviews have advised I first first get financing in place so I can determine whether the lenders will indeed loan to me a corporate entity. I have interviewed two really good attnys that seem excellent in both corp structure and RE law, but there is one more on my list and he also has a title guy in his office who is accustomed and comfortable with unconventional closings. That would be a really sweet bonus.
2. I found a smaller local bank that will loan me 70% of my homes value as a commercial line of credit. THe rate would be 2% over prime, interest only, due in one year. I think I will get about 150-175K line of credit to work with and the banker has told me we can probably do it on a two year term, which I would prefer as explained later. The bakner told me they hold their own paper and would love to work with me on an ongoing basis as I acquire more properties (I think it was Mike that made this excellent suggestion. Having someone like that in place would easily be worth an extra point or two.)
When I buy a home at auction cash from the line of credit, I can then finance it 70/30 LTV of auction price and when rehabbed at 70/30 of final appraised value at the same bank. This should allow me to keep the initial commercial loan paid up while transfer the new note payments to the cash flow of the property acquired.
3. I think I will concentrate on foreclosure property here, whether auction, pre-foreclosure or short sales from the lenders. It looks like these run about 20-40% under retail and while that is not as wide a margin as I would prefer, these should be available and accesible until I can build a network and find greater values.
The foreclose listing service I subscribed to seems to be first rate. There are two zip codes in Austin that are hot, nearby, and I know intimately. There were 14 foreclosure properties listed in those zips for this month's auction.
I drove and photgraphed all 14 today and tomorrow I will run appraisals on them to hone in on their values. I will then compare those to the auction sales prices (7/4) and see what the values look like.
I also got last month's sales and I will drive them tomorrow, superficially appraise them and compare with their sale prices. THis is all home work for me before the August auction, where I tend to participate and buy! I am anxious to get started asap and I am really having to throttle myself back. But I feel the insight I can gain from the June and July sales could be invaluable to me before entering the fray.
4. My initial gameplan is to pick up a good value at the August sale and get it ready for a rental by Sept. Then put it on a one-year lease for cash flow to pay its note and keep it in possesion long enough to sell the following Sept., after rehabbing as much as market dictates for sale, and only paying a capital gains tax.
If all goes to plan I should get enough $$ on the refinance of the first purchase to pay down the commercial loan and repeat the process. I am hoping to do at least three and maybe 6-8 homes over the next year.
================
A couple of questions:
If I buy a foreclosure, and it is occupied, I guess I need to get the tennants evicted?
If they are renters, what rights, if any do they have to stay?
How hard is it to evict someone and how long does it take and how much does it cost?
I'm thinking that before eviction i might should approach the occupiers of the house and offer them a bonus for leaving it intact and clean? Maybe $500-1000 would be of value to both of us.
Any comments, warnings, etc. would be very welcome.
1. I have initiated transfers of about $10K in IRAs to a self-directed account. My plan is to use those for my intial startup costs, such as forming the LLCs and/or corps as advised by the legal council I will also hire eith these startup funds. Premliminary attorney interviews have advised I first first get financing in place so I can determine whether the lenders will indeed loan to me a corporate entity. I have interviewed two really good attnys that seem excellent in both corp structure and RE law, but there is one more on my list and he also has a title guy in his office who is accustomed and comfortable with unconventional closings. That would be a really sweet bonus.
2. I found a smaller local bank that will loan me 70% of my homes value as a commercial line of credit. THe rate would be 2% over prime, interest only, due in one year. I think I will get about 150-175K line of credit to work with and the banker has told me we can probably do it on a two year term, which I would prefer as explained later. The bakner told me they hold their own paper and would love to work with me on an ongoing basis as I acquire more properties (I think it was Mike that made this excellent suggestion. Having someone like that in place would easily be worth an extra point or two.)
When I buy a home at auction cash from the line of credit, I can then finance it 70/30 LTV of auction price and when rehabbed at 70/30 of final appraised value at the same bank. This should allow me to keep the initial commercial loan paid up while transfer the new note payments to the cash flow of the property acquired.
3. I think I will concentrate on foreclosure property here, whether auction, pre-foreclosure or short sales from the lenders. It looks like these run about 20-40% under retail and while that is not as wide a margin as I would prefer, these should be available and accesible until I can build a network and find greater values.
The foreclose listing service I subscribed to seems to be first rate. There are two zip codes in Austin that are hot, nearby, and I know intimately. There were 14 foreclosure properties listed in those zips for this month's auction.
I drove and photgraphed all 14 today and tomorrow I will run appraisals on them to hone in on their values. I will then compare those to the auction sales prices (7/4) and see what the values look like.
I also got last month's sales and I will drive them tomorrow, superficially appraise them and compare with their sale prices. THis is all home work for me before the August auction, where I tend to participate and buy! I am anxious to get started asap and I am really having to throttle myself back. But I feel the insight I can gain from the June and July sales could be invaluable to me before entering the fray.
4. My initial gameplan is to pick up a good value at the August sale and get it ready for a rental by Sept. Then put it on a one-year lease for cash flow to pay its note and keep it in possesion long enough to sell the following Sept., after rehabbing as much as market dictates for sale, and only paying a capital gains tax.
If all goes to plan I should get enough $$ on the refinance of the first purchase to pay down the commercial loan and repeat the process. I am hoping to do at least three and maybe 6-8 homes over the next year.
================
A couple of questions:
If I buy a foreclosure, and it is occupied, I guess I need to get the tennants evicted?
If they are renters, what rights, if any do they have to stay?
How hard is it to evict someone and how long does it take and how much does it cost?
I'm thinking that before eviction i might should approach the occupiers of the house and offer them a bonus for leaving it intact and clean? Maybe $500-1000 would be of value to both of us.
Any comments, warnings, etc. would be very welcome.
Last edited by a moderator:
Flying V
Footballguy
From some of my earlier posts: The Common Sense Mortgage by Peter Miller is a good read for understanding all the options and jargon that'll be thrown your way by your lender.
My favorite is The Unofficial Guide to Real Estate Investing. It’s not the only book you’ll ever need on the subject, but the first one a beginner should pick up. I still refer to it occasionally.
If you want to be a landlord, get Property Management for Dummies. Read it before you buy rentals so you know what you’re in for.
The For Sale By Owner Kit (by Irwin) is a good guide if you’re thinking along those lines.
Of course I'm not in the same league as Jeff, Mike, and the rest...but I have made a living for the past few years off RE investments and of the several dozen books I've read on the subject, these are the ones I'd recommend for anybody starting out. Tyler Hicks has a bunch of real estate books, but he pimps his other services so much in them, it’s kind of like reading a C. Sheets infomercial.
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