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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Volume players Posted by Kristine-CA on November 21, 2009 at 8:13 AM In Reply to: It's a free country. Choose to believe what you like. posted by JK (the other JK) on November 20, 2009 at 5:18 PM I am familiar with investors who don't insure and/or who are working in volume and let things fall through the cracks as the cost of business. I once bought a heavily discounted, non performing note and then foreclosed. I was looking at an easy 30K profit if it sold at sale, which it did. The property was sold subject-to 6 years of back property taxes. The trustee's sale was on a Tuesday and the property was scheduled for tax sale the following Monday. The trustee/foreclosure service, who was really crappy and shall go unnamed because everyone here who has ever used them knows who they are, told me the wouldn't know for three days if the funds were "verified." You know, CASH, the kind of funds that are really hard to verify. Because I did not want the sale to fall through after the investor lost it to tax sale, I called him. He said, that indeed, he knew the tax amount due, but wasn't aware that the sale was in just a few days and would send someone over to pay the taxes. He thanked me because he said he lost one just a few months ago for the same reason. At that time he was buying 30-50 things a month....some just fell through the cracks. I went on to sell him other deals over the next couple of years. And indeed things would fall through the cracks. One time we did a four house deal, but there were four separate escrows. The escrow officer divided the purchase price equally among the four. What we didn't notice was that she used the wrong purchase price and was 10K off....not in my favor. I was so busy correcting all the other errors in escrow back in those days I totally missed the purchase price problem. After closing, I did notice it and contacted escrow who said that we signed off on the final docs and was all huffy and didn't want to correct the error. The investor dislikes escrow as much as I do and just sent me the 10K out of escrow, as he didn't have time to work with escrow to correct it. There were lots of little things like that. But those were small time deals compared to 1M props that fall off hills. : : The story has great drama and a great photo. But why a 100% loss? Who bought a 1M property (any property for that matter) and didn't insure? If it was to be a double/simo close, the buyer only loses their deposit. : : Something isn't right with this story. : : : : : : I've been lurking for awhile now and have found this forum to be invaluable. Thank you Ward! I plan on taking your training BEFORE I start in the game. : : : : I thought it might be an interesting exercise to have those that wish, post about their WORST deal. I tend to learn best from my mistakes...any one else? So how about it...? : : : : What was your worst deal? Why? : : : : What did you learn? What did you do differently after that? : : : A certain former janitor trained by Ward bought an $1M+ property on a hill CASH. Two weeks before escrow close on the flip L.A. experienced some serious rain. The mayor came on TV and announced the good news that L.A. only lost one property. Did I mention no insurance exists for soil erosion? Here's the photo of the aftermath: : : : http://www.flickr.com/photos/troubleshots/213371933/sizes/o/in/set-72157594234241565/ : : : The city came and red tagged the lot. 100% loss. : : : : Believe it or not, a lot of the big boys flip in such volume they don't "waste time" with insurance. This same investor has lost homes to fires as well. I should mention that it was purchased at foreclosure sale (cash) and vacant. I personally visited the property and heard the story directly from the horses mouth. Call your insurance agent, ask about vacant homes on hills in areas like Malibu, mention the words soil erosion and prove me wrong. I'd love to be proven wrong on this one, as I'm now scared as hell of anything on a hill (won't go near a house on a hill or fire area with a 10' pole). Follow Ups: Post a Followup: Name : E-Mail : Subject : Comments: : I am familiar with investors who don't insure and/or who are working in volume and let things fall through the cracks as the cost of business. I once bought a heavily discounted, non performing note and then foreclosed. I was looking at an easy 30K profit if it sold at sale, which it did. The property was sold subject-to 6 years of back property taxes. The trustee's sale was on a Tuesday and the property was scheduled for tax sale the following Monday. The trustee/foreclosure service, who was really crappy and shall go unnamed because everyone here who has ever used them knows who they are, told me the wouldn't know for three days if the funds were "verified." You know, CASH, the kind of funds that are really hard to verify. Because I did not want the sale to fall through after the investor lost it to tax sale, I called him. He said, that indeed, he knew the tax amount due, but wasn't aware that the sale was in just a few days and would send someone over to pay the taxes. He thanked me because he said he lost one just a few months ago for the same reason. At that time he was buying 30-50 things a month....some just fell through the cracks. : I went on to sell him other deals over the next couple of years. And indeed things would fall through the cracks. One time we did a four house deal, but there were four separate escrows. The escrow officer divided the purchase price equally among the four. What we didn't notice was that she used the wrong purchase price and was 10K off....not in my favor. I was so busy correcting all the other errors in escrow back in those days I totally missed the purchase price problem. After closing, I did notice it and contacted escrow who said that we signed off on the final docs and was all huffy and didn't want to correct the error. The investor dislikes escrow as much as I do and just sent me the 10K out of escrow, as he didn't have time to work with escrow to correct it. There were lots of little things like that. But those were small time deals compared to 1M props that fall off hills. : : : : The story has great drama and a great photo. But why a 100% loss? Who bought a 1M property (any property for that matter) and didn't insure? If it was to be a double/simo close, the buyer only loses their deposit. : : : Something isn't right with this story. : : : : : : : : I've been lurking for awhile now and have found this forum to be invaluable. Thank you Ward! I plan on taking your training BEFORE I start in the game. : : : : : I thought it might be an interesting exercise to have those that wish, post about their WORST deal. I tend to learn best from my mistakes...any one else? So how about it...? : : : : : What was your worst deal? Why? : : : : : What did you learn? What did you do differently after that? : : : : A certain former janitor trained by Ward bought an $1M+ property on a hill CASH. Two weeks before escrow close on the flip L.A. experienced some serious rain. The mayor came on TV and announced the good news that L.A. only lost one property. Did I mention no insurance exists for soil erosion? Here's the photo of the aftermath: : : : : http://www.flickr.com/photos/troubleshots/213371933/sizes/o/in/set-72157594234241565/ : : : : The city came and red tagged the lot. 100% loss. : : : : : : Believe it or not, a lot of the big boys flip in such volume they don't "waste time" with insurance. This same investor has lost homes to fires as well. I should mention that it was purchased at foreclosure sale (cash) and vacant. I personally visited the property and heard the story directly from the horses mouth. Call your insurance agent, ask about vacant homes on hills in areas like Malibu, mention the words soil erosion and prove me wrong. I'd love to be proven wrong on this one, as I'm now scared as hell of anything on a hill (won't go near a house on a hill or fire area with a 10' pole). [ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] WWWAdmin 2.0a © 1997 Matt Wright and DBasics Software Company, All Rights Reserved

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