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Q: How do I send in payment?
A: Once you reserve a property here on the website
you will receive wire transfer instructions to the Escrow Company used to hold the
funds until DBO transfers the Deed to you or your Entity.
Q: Can I use funds from my IRA?
A: Yes, please call your trust company. We have
used companies like Entrust and or Pensco, however we are not affiliated with either
of them.
Q: Are there any closing costs?
A: No, all closing costs and Title fees are
included with your purchase price.
Q: How long has DBO, LLC been doing this?
A: This opportunity has become available in the past
two years due to market conditions. The process this opportunity is based on has
been around for over 20 years. We have always been able to go to the auction house,
buy a property for cheap, clean up the title, get rid of all the liens like taxes,
water bills, utility bills, renovation liens, etc.., find an occupant, and then
sell the note later. This is not new. With the sub-prime meltdown last year
the banks began to panic and unload properties in bulk at a loss. This basically
created the niche described above.
To be more specific… DBO is a newly organized organization
to specifically sell homes in the manor DBO is; however the owners have been doing
this for years.
Q: Do I need to sign a new contract to change ownership to an
LLC? To add a spouse/partner?
A: No. Once the property is deeded to you or
your Entity you will need to get with the County Recorders office where the property
is located, they will be able to direct you with this.
Q: So after I pay, what happens then?
A: After the wire has been received by the Escrow Company
DBO will be informed and our deed department will draft the needed documents to
transfer a “Clean and Marketable” Warrantee Deed to you.
DBO will have the deed recorded and the purchase funds
will be released.
Q: Who does the valuations for the properties? I see that you
have listed the “Online Evaluation” where did you get this?
A: We use multiple online nationally recognized
valuators; we have listed a few below:
Q: What is the biggest difference between the different
properties listed on your website?
A: We sell two types of properties.
1: Currently cash-flowing with a Tenant/Occupant in the property. This
type of property will have a national management company managing the property.
And you are fee to continue to use them, or you can hire one you choose.
2: A wholesale property that is not yet cash-flowing.
Q: Why would I want to buy a non cash-flowing property?
Wouldn’t I want to purchase one that already has a cash-flow stream?
A: This depends on your desired involvement in the
process. If you are interested in getting the best price and doing a little work
you may be able to receive a better rate of return.
Example:
An occupied (cash-flowing) home could sale for around $25,000 and produce
$400 a month cash-flow.
An unoccupied (non cash-flowing) home could sale for around $14,000.
If you understand that DBO has never paid $11,000 to secure a property with an Occupant
you may be able to save a substantial amount of money and receive a much better
ROI.
Q: Who takes care of any fix-ups/maintenance/renovations?
A: If you purchase a property with an Occupant
already in place, then the Occupant is responsible for this. When something breaks
down or needs repair we do not call our bank to handle it. This is why they get
such a great deal on the home, because they take it “AS IS” and are willing to put
in some sweat equity to fix it up.
If you purchase a property wholesale and without an
Occupant/Tenant yet, then the repair and maintenance of the property is your duty
until you get an Occupant/Tennant.
Q: How do I get my monthly payment?
A: The funds are received by the escrow company
(less the 10% management fee charged by the Property Management Company) and they
wire it to your account or send you a check your choice.
Q: How involved can I be in finding buyers, tenants, or even renovations
that I may want?
A: If you purchase an occupied (cash-flowing)
home the Occupant will already be placed in the home and will have purchased it
on a privately held land contract. The Management contract will be in place and
all of the above will be assigned over to you. Therefore you will have no involvement
in the selection process.
If you purchase a unoccupied home you will have the
ultimate control over this process. However, we recommend you defer this decision
to the professionals with our management companies.
Q: How do you find renters/Occupants for your properties?
A: We recommend you attend an in-depth training
provided by
www.junkhouseriches.com to find out how the entire process works.
Q: How do you market your properties?
A: We recommend you attend an in-depth training
provided by
www.junkhouseriches.com to find out how the entire process works.
Q: Who is the Insurance Company?
A: The Property Management Company will provide
that to you.
Q: When are Taxes due?
A: Taxes are due at different times throughout
the year depending on the specific County. Once you are on Title and the deed is
recorded at the County you will received the tax bill in the mail from the County.
You will only be responsible for the taxes once you show up on the deed. All taxes
will be paid current up to that date.
Q: How do I get my property taxes lowered for my
property?
A: Another very good question that is covered in detail
by
www.junkhouseriches.com.
Q: What are the different exit strategies once my property is
cash flowing?
A: -You own a cash flowing property and you
have the ability to sell it to other investors.
-The Occupant always has the option of a refinance
or selling the property and you will have to be paid off like any other mortgage.
-The mortgage note you hold may always be sold on the
secondary market to wholesale note buyers.
Q: What if the buyer I have cannot make the monthly payments?
A: The Property Management Company in place
will assist you in the eviction process and for a fee secure a different Occupant.
Under the terms of our land contract in a situation of “Default” the contract reverts
to a lease and the Occupant may be evicted under the existing State laws governing
leases.
Q: What if the tenant abuses my property?
A: They are actually not a tenant but the home
owner and as such treat the homes as owners not as renters. You as the title
holder hold the contract on the property, similar to a bank.
Q: What if maintenance or repairs are required?
A: The occupants are responsible for this. When
something breaks down or needs repair we do not call our bank to handle it.
Q: What about taxes & legalities?
A: We recommend that you consult with a CPA
and a local attorney before purchasing properties.
Q: Are utilities turned on when we purchase the property?
A: If the property has an Occupant then yes,
the bills should most likely be in the name of the Occupant. If the property is
unoccupied then no the utilities should be turned off. You will be responsible for
working with the local utilities once they need to be turned on.
Q: How do I get started?
A: Create a membership and start shopping the
website for the desired property. Once you have found the property(s) that you want
you need to reserve them in order to secure you as the buyer. Once you have paid
the reservation fee to hold the property you will be emailed the Purchase contract
and wire instructions. Someone form DBO will be contacting you and helping you walk
through the process.
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