Newbie makes stupid mistake and still comes out okay... - Posted by Anne-ND

Posted by Anne-ND on April 24, 2000 at 15:38:54:


Ed’s a mortgage broker, he can fund deals in (I think)
47 states. Call him.


Newbie makes stupid mistake and still comes out okay… - Posted by Anne-ND

Posted by Anne-ND on April 24, 2000 at 13:45:33:

Hi folks,

I’ve found it really helpful to read about experiences others have had, both good and bad, so I thought I’d post this for the benefit of others who may learn.

On my second deal (thanks to Ed Garcia for funding on that) I ‘stole’ a 2BR house for $33K (I gave the seller their full asking price, it was on the MLS). FMV about $43K. I updated plumbing, painted and carpeted to the tune of about $4K, and will be putting on a new roof this summer. I have GREAT tenants in there, and it’s a nice cash flow.

At the time I bought the house, the city had it assessed at $42K. The appraisal came in at $39K. As I said, I bought it for $33K. The tax assessor called me a few months later to ask about my duplex, which I live in, and which I’d done substantial work on. It needed to be reassessed, I knew it, so I said, sure come on over, and while you’re at it, take a look at my house on Oak St. My thinking was that since I’d bought it so cheap they’d lower the taxes. NEWBIE MISTAKE!!! It came back reassessed at $44k by the city, with a lecture about stealing houses out from under little old ladies…

Well, I was peeved, but I figured it was a lesson learned (keep yer mouth shut). A month ago I went to my local (very local) bank to ask about a home-equity loan to pay for the new roof. They said, sure, you can have one based on either 90% of your tax-assessed value, or 80% of your appraised value.

I explained to them that the tax-assessed value was $5K more, and that was fine with them. I’ve got enough to put new roofs on both my houses, and replace the plumbing in deal #3 (taking subject to…). Thank you, Mr. tax assessor!

And it’s tax-deductible! Yes, I love REI.

Thanks to all here for the inspiration and help!

best regards, Anne

Re: Newbie makes stupid mistake and still comes out okay… - Posted by Laure

Posted by Laure on April 25, 2000 at 04:19:11:

You don’t have to let the tax assessor into your home. They will ask ! I never let them in. And, of course, nothing has changed. Their records are accurate. LOL

Always good when you can still profit! - Posted by Monique

Posted by Monique on April 24, 2000 at 14:55:24:


Good to see you working it!


Ed Garcia funds deals? - Posted by Sparky

Posted by Sparky on April 24, 2000 at 14:00:16:

Whoa - fill me in here. Did you mean Ed Garcia financed this deal for you? That’s great!!! Ed, if you’re out there - do you finance deals all the time or was this a special case? How do I qualify? Details please…