Posted by BR2 on May 31, 1999 at 09:08:16:
A real estate attorney suggested I file for quiet title after the redemption period expires.
I really wasn’t comfortable w/this attorney and have been thinking about talking to another, just to make sure everything is okay.
Is There A Market For This? - Posted by BR2
Posted by BR2 on May 30, 1999 at 19:29:45:
Purchased a foreclosed property last year. The redemption period ends in July. After driving by the property a few times, I think I’d like to get rid of this deal NOW. Bad house in decent neighborhood. Is there a buyers market for this type of interest/ownership?
Purchased property for 5k. I’ve been told it will take another 3k to quiet title. FMV in current condition 25-30K (this could be low, but I haven’t seen the inside).
Suggestions needed.
Re: Is There A Market For This? - Posted by chris
Posted by chris on May 31, 1999 at 01:40:04:
I’m no expert , but the “quiet title” thing takes a little while. Why would you want to go through that court process anyway ? Did your title co. have a problem w/their regular title search?
Re: Is There A Market For This? - Posted by Bill K. (AZ)
Posted by Bill K. (AZ) on May 30, 1999 at 20:27:45:
BR2,
What a coincidence! I was just reading about these situations in Ron LeGrand’s “Fast Cash With Quick Turn Real Estate” book. I have never done one of these, but, since you want to sell NOW, Ron might suggest that you wholesale flip this property to another investor or handyman. The secret to successful wholesale flips is leaving enough profit for your investor/buyer.
You don’t specify how much repair work is required; however, you do hint at it…“bad house in decent neighborhood”. “Bad house” indicates a moderate amount of repair work. “Decent neighborhood” indicates a good chance for a quick sale. Advertise the property as a “Handyman Special”.
You are into this property for $8K by the time you get clear title. Assuming that the house requires $10K worth of repairs, and the FMV is at the low end of your estimate, $25K, there is a $7K equity position. So, if you want a $3K profit, you would ask $11K for the property leaving about $4K for buyer’s profit. You had $5K invested in this property for a year, so your return would be about 60%. Now, if the ARV is closer to $30K, you might be able to get $5K to $6K profit on a wholesale flip.
The most important thing you can do is understand the home’s FMV after repair, and how much repair work is required. Those 2 pieces of information will enable you to price it right for quick sale.
Good luck.
Bill K. (AZ)