Buying Abandoned Properties
Good morning all,
What steps should I take to purchase an abandoned property? I have identified four that I would like to purchase ASAP. How do I locate the owner?
I have researched the back taxes owed, but I need to make sure I have covered all of my bases for complete ownership.
Are they in a metropolitan area? I found a few in Arkansas and it took a lot of calling around but I finally found a couple of owners names. I called and left messages and mailed letters but got no response.
I have basic title access if you do not youcould give me the city state county and zip and I will tell you if I have access to that area.
Find another lender..........you need to show them the numbers can work.
NC
Modest is a relative term. You need to show that the foundation repair does not mean structural damage.
Mortgage lenders tend to stay far away from those because they cannot get backend insurance to cover their interests
You have to be a problem solver. Almost none of my houses are clean deals. I have one now that is going through probate, one that is in foreclosure, one that was sold to me because she can not get her parents out, and one that has a property manager and tenant that I have to negotiate with. NONE of my deals are clean and easy.
In your house that you got down to 97k and the house was worth 140k, what was the terms of the lease? How much rent were they paying and when was the lease terminating? You could have taken over his lease with a lease assignment. Collect the rent, give a 30 day notice when the lease is ending and then sell the property. In fact, you might have been able to get him even lower once he finds out he has to keep the damn tenants even longer.
In the second deal you could have tried to get your inspectin done first, and then get the owner to sign the contract. In my assignments, I do not allow an inspection clause. Do your inspections first and then come to me with a contract with no contingencies.
I can not tell you how many things I have done for home owners to get them to sell me their house. In the past I have paid their tenants to leave, helped them move their dead mothers stuff, gotten an entire estate probated, negotiated down a gazillion liens and judgements, made beer and cigarette runs, you name it.
If there were no "situations" with the home owners or the house then they would not need us - they would use a realtor.
I can see why most realtor would not want to work with investors or not give investors much time. They teach you at the seminars to make offers of at least 70% below retail. They also teach to really know your market. So how would a realtor like to pull tons of comps on a home where there is probably only a 5% change of getting the offer accepted. Being an investor is all a numbers game. I send out hundreds of letters a week and only get a contract probably ever 2-3 weeks. If I were working the MLS, it would be a realtors full time job helping me to get a house.
I think investors need to work with Realtors that are or at least have been investors themselves. The best place to find them is at Real Estate Investors meetings.
The ranks of Realtors are made up of ex-Mary Kay saleswomen and ex-Avon representatives. The majority of Realtors work as Realtors on a part-time basis and the national average is 2 homes sold a year.
What did you think you were dealing with professionals just because they all have to take a 6 week class that my dog could pass?
It took me almost 3 years to give my first flip and it was a tax deed property. I have spent a lot of time doing research and have learnt not to rely much on realtors. I do my own homeowrk and with info and advice from this board I make offers.
I had one realtor I had to file a complaint against because she did not put in e my offer. Her brother-in-law bought the property for $13,500 less than what I had offered. Right now I am working with 2 realtors and I will see if they are trustworthy.
Also, a lot of homeowners will try to scam you. You have to do your homeowrk and be thorough.
I have been doing ok at aquisition but mostly because I turned to doing abandoned homes. I researh them, see which might be worthwhile. ANd then track the owners.
If I buy on a Special Warranty Deed and want to give a General one then I make sure it is a deal that goes through a title company and that the buyer gets title insurance. Otherwise you become responsible for title defects. Title insurance is cheap and worthwhile
So, you would rather be sued by a professional title company than an amateur?
I know......you have the likelihood of a more thorough search prior to closing....
But title insurance only protects the buyer, right?
Quote:
On 2006-05-04 01:31, linlin wrote:
If I buy on a Special Warranty Deed and want to give a General one then I make sure it is a deal that goes through a title company and that the buyer gets title insurance. Otherwise you become responsible for title defects. Title insurance is cheap and worthwhile
[addsig]