Posted by Duke on December 21, 2002 at 13:43:21:
Nice to meet you! I’m also beginning investing(RE/Notes)in these areas.
Duke
red tagged triplex - Posted by luap71-CA
Posted by luap71-CA on December 20, 2002 at 11:09:41:
I found a triplex that’s boarded up and is in an Estate sale. I talked to the realtor and she said that its in poor shape and that its been “red tagged” by the city (I’m assuming that means code violations). triplex’s go for about $110K around there, and this one is for sale at $55k. rents would be about $430-450. I’m sure I can get it for less then the asking price, but the agent said there is like 4-5 siblings that I will have to get
approval on for the offer. Before I get to the numbers part I just want to get feedback on the Estate sale and red tag aspect of the deal.
The realor is faxing over a list of repairs. My question is for those of you that have dealt with estate sales and those of you who have bought property that has been “red tagged”.
-
As far as the Estate Sale part of it, has anyone had difficulties with an Estate sale before, are there any additional fees that I should be aware of. Any restriction on me that I wouldn’t normally have. If I try to be creative is the judge going to squash it.
-
Dealing with code violations. I would like to get peoples feedback on what I should be looking at. I’m guessing I should check for back fines and such correct? Anything else I should be checking out in respect to the property being red tagged? I would appreciate feedback from everyone, but especially someone that has bought property that has been red tagged by the city.
Thanks in advance,
paul
Re: red tagged triplex - Posted by Kristine-CA
Posted by Kristine-CA on December 20, 2002 at 14:02:17:
By estate sale in CA, I am assuming you are referring to a property currently in probate of the estate? Indeed, getting creative will probably not work. Most of these sales are cash only, as-is unless the estate has funds. More likely the estate has debt. Also, a 10% earnest deposit is required by the court on offers to purchase in probate. If you are making an offer through an agent, they will have all the correct paperwork for the estate. However, if the heirs are taking title and then selling, that’s a whole different story. Then you are buying from the owners and those sales are usually less restrictive (unless the heirs have some kind of mandated trust, etc.)
Your offer can be bid up in court. It doesn’t happen very often but if someone else has their eye on the property, they might be there. You, of course, can counter bid any offer in court (this is why you would want to be present). That being said, the probates I’ve dealt with were pretty uneventful. And I’ve never bothered to show in court because I wasn’t willing to go any higher than my original offers.
Regarding reg tags. Call the number on the tag because you need to speak to that county department. They will tell you what the violations are. Sometimes they are very, very minor. While the estate is normally responsible for any taxes currently due or past due, the special assessments fees associated with red tags do not get posted right away. Ask whomever you speak to about the dates and fees of the violations.
Where are located in CA? I work with similar properties in that price range in Bakersfield.
Sincerely, Kristine
Re: red tagged triplex - Posted by luap71-CA
Posted by luap71-CA on December 20, 2002 at 14:33:38:
Kristine-
Great info! Thanks for the feedback, that is just the type of info I was looking for.
I’m investing in Visalia/Tulare area. Not to far from Bakersfield. I’m gonna buy in Tulare County and wait for Fresno and Bakersfield to grow together J/K.
Do you have any contacts (mortgage brokers/Real Estate Agents/or fellow investors) that are in the area I could network with?
thanks
-paul