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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Re: Letter to Oklahoma... Posted by david on August 19, 2003 at 12:35 AM In Reply to: Letter to Oklahoma... posted by Ward-CA- on August 06, 2003 at 7:56 PM Hi Ward, 1) What happens if they file chapter 7 bankruptcy later on, do you still get to keep the house. 2) I understand you cannot sell it again as long as the outstanding liens are satisfied? Thanks, David. : : Hi Ward, : : Thanks for your reply on my last message. Here is another question for you. When I was at your seminar last month, you told of a story of a place that was in San Diego and the owner was in Oklahoma (or Nebraska I don't remember). Anyway, you sent the owner a letter in an attempt to obtain the property. As I do not remember, what did you say in your letter to get the owner to deed the property over to you? : : Thanks for your response! : =-=-=-=-=- : James, : The letter I referred to isn't that special. But I don't have any compunctions against sharing it, so here it is. : : Tuesday, December 19, 2000 : Dear So and So: : You have a problem with your house in El Cajon. But I think that between the two of us there's a solution. : The problem is: : There's hardly any net equity in the house for you at this time. A search of the title record shows there are three mechanic's liens and four trust deeds against the property. The total of all those liens (including the back payments, interest & penalties) is just about equal to the present value of the house. : Basically, if you add the expenses involved in a traditional resale of the property (fix-up and sales cost), you'll end up putting money into the deal rather than getting any out. Not a great choice going that way. : If you do nothing: : You'll suffer a foreclosure against your credit record that will be reported to everyone who makes a credit inquiry on you over the next 7 years. : The solution is: : Deed the property to someone like me on an as is, where is basis, via a quitclaim deed, with no warranties whatsoever on your part. : The immediate payoff to you is credit protection. There's no immediate payoff for me, but I'm banking on the long term. : I will immediately spend the money necessary to bring all the liens current and fix up the yard, the deck and patio cover, install a new stove, paint the house and then rent it out. At first I know I'll suffer a negative cash flow but eventually, with steady tenants, I should pull ahead. : I've been acquiring rentals locally over the last fifteen years, trying to build up enough of them to support me and my wife when I retire. : I expect that we will need to talk by phone and get acquainted so you'll know I'll keep my word about protecting your credit. I don't have your number but mine appears herein above. So please call me collect and let's talk. I'm generally available throughout the day, from 7:00 AM to 7:00 PM (except lunch time). : I hope you don't think I'm being presumptive by including a quitclaim deed at this time. I just think it will save me a step or two if you decide to go forward and safely transfer your property to someone who can handle the financial commitment this turn-around is going to take. : Sincerely, : Ward Hanigan : Epilogue: : About two weeks later the notarized quitclaim deed was sent to me with no note of any kind. So I recorded the deed and took charge of the property. I still own the property and figure that it's value has doubled to about $500K at the present time. Follow Ups: $70K letter Ward-CA- 9:32 PM, 08/19/03 (0) Post a Followup: Name : E-Mail : Subject : Comments: : Hi Ward, : 1) What happens if they file chapter 7 bankruptcy later on, do you still get to keep the house. : 2) I understand you cannot sell it again as long as the outstanding liens are satisfied? : Thanks, : David. : : : Hi Ward, : : : Thanks for your reply on my last message. Here is another question for you. When I was at your seminar last month, you told of a story of a place that was in San Diego and the owner was in Oklahoma (or Nebraska I don't remember). Anyway, you sent the owner a letter in an attempt to obtain the property. As I do not remember, what did you say in your letter to get the owner to deed the property over to you? : : : Thanks for your response! : : =-=-=-=-=- : : James, : : The letter I referred to isn't that special. But I don't have any compunctions against sharing it, so here it is. : : : : Tuesday, December 19, 2000 : : Dear So and So: : : You have a problem with your house in El Cajon. But I think that between the two of us there's a solution. : : The problem is: : : There's hardly any net equity in the house for you at this time. A search of the title record shows there are three mechanic's liens and four trust deeds against the property. The total of all those liens (including the back payments, interest & penalties) is just about equal to the present value of the house. : : Basically, if you add the expenses involved in a traditional resale of the property (fix-up and sales cost), you'll end up putting money into the deal rather than getting any out. Not a great choice going that way. : : If you do nothing: : : You'll suffer a foreclosure against your credit record that will be reported to everyone who makes a credit inquiry on you over the next 7 years. : : The solution is: : : Deed the property to someone like me on an as is, where is basis, via a quitclaim deed, with no warranties whatsoever on your part. : : The immediate payoff to you is credit protection. There's no immediate payoff for me, but I'm banking on the long term. : : I will immediately spend the money necessary to bring all the liens current and fix up the yard, the deck and patio cover, install a new stove, paint the house and then rent it out. At first I know I'll suffer a negative cash flow but eventually, with steady tenants, I should pull ahead. : : I've been acquiring rentals locally over the last fifteen years, trying to build up enough of them to support me and my wife when I retire. : : I expect that we will need to talk by phone and get acquainted so you'll know I'll keep my word about protecting your credit. I don't have your number but mine appears herein above. So please call me collect and let's talk. I'm generally available throughout the day, from 7:00 AM to 7:00 PM (except lunch time). : : I hope you don't think I'm being presumptive by including a quitclaim deed at this time. I just think it will save me a step or two if you decide to go forward and safely transfer your property to someone who can handle the financial commitment this turn-around is going to take. : : : Sincerely, : : Ward Hanigan : : : Epilogue: : : About two weeks later the notarized quitclaim deed was sent to me with no note of any kind. So I recorded the deed and took charge of the property. I still own the property and figure that it's value has doubled to about $500K at the present time. Optional Link URL: Link Title: Optional Image URL: [ 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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