OfflineA crazy true story.
I got this pre-foreclosure house in the town of Madera last month and when I was showing it to potential renters there was an old lady next door that tells me she had lived there for 40 years. She said she wud like to rent it.
Then her son comes out and starts yelling and telling my renter applicants that I'm a scammer and the cops were on the way and also code enforcement, he then came over and was filming me and my vehicle. The guy was about 40+ years old and telling me he used to work in law enforcement and acting like a real dipwad.
I was a little worried cuz I had turned the water on illegally to flush the toilets and do some cleaning.
Then within 20 minutes code enforcement shows up and asks me who I am and what I'm doing there. I tell him I'm the new owner, He tells me this house is going thru a foreclosure and is owned by the bank. Then he tells me I can not be there.
I tell him that's not correct. I got this house on contract, I'm now the legal owner until the bank takes legal action and does a legal foreclosure. I felt confident, I've done a handful of these. He looks confused, and soon 2 other code enforcement officers show up and they all stand out in the street talking for a half hour before they eventually left. I finally got it rented despite this loud mouth neighbor and his obnoxious behavior.
Then today I hear that the idiot neighbor that called code enforcement and causing me problems, suddenly with out warning, dropped dead last week.
What made him kick the bucket I don't know, maybe it was the stress of yelling at me and my renters, Oh the insanity.
Never boring here, Let's make some Money.....
Rando
Rando
Not sure I grasp your exit strategy here Rando. What do you do if the bank starts foreclosure action? Has the seller already received a notice of default? What is your down side risk in this deal?
These properties are deep in the process of foreclosure, and it can take a few years for the banks to go thru the process. Even when they go thru the process and go up for auction sometimes they are still not sold.
I simply get the owner in default to sign the property over to me.
Then I rent it out till the bank forecloses. The last house it took 18 months, I collected $600 a month plus deposit. Over 10 Grand. A few houses I got the first and deposit and the renters never gave me another cent, they know they don't have to pay and its too expensive to evict them.
But 4 of the houses I've done I made a killing on rents.
The bank seem to be OK with it, it keeps the property from vagrants and I've chased out vagrants on a few of them, cleaned them up and got them rented.
Some of these homes are really nice and some are junky in bad areas, but they all rent. I charge about 2/3 of the going rents because of the situation and they usually need cleaning and some repairs.
I don't come across the situation a lot but when I do I gram them. Most owners will stay in the house for free until the bank evicts them.
Rando
By Damn tell him next time he drops dead give you some warning ROFLMAO..... only you Rando Rando......
hahahahahahaha i mean too bad for the guy may he rest in peace, great strategy I will keep that in mind when i get one like that. love it
Tony
Go faster do more! GFDM!
Rando, are you carrying any kind of liability insurance on these properties or do you have an umbrella policy?
have you thought about buying these properties from the bank and selling to investors?
Valerie
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