Leave Us A Review On Apple Podcast!
Ep 374: How To Buy Real Estate Before It Goes To Auction With Kevin Amolsch

May 23, 2023

Ep 374: How To Buy Real Estate Before It Goes To Auction With Kevin Amolsch
Play Episode
The player is loading ...

pinefinancialgroup.com

210-972-1842

text "course" to learn how to make 6 figures on one land deal, Text "Hive" to learn more about the hivemind. Text "apple" to schedule a 1-on-1 call with Anthony & Daniel. Text "land" to join The Million Dollar Land Mastermind

Sign up at hivemindcrm.io

Need Inbound Real Estate Leads.

www.hiveleads.io

Follow Us On YouTube

https://www.youtube.com/channel/UCbulcrC4WbOy5Fzu0eWzNVQ/?sub_confirmation=1

Follow Us On Instagram

https://www.instagram.com/hivemindcrm/

Follow Us On TikTok

https://www.tiktok.com/@hivemindcrm?lang=en

Join The FB Group

https://www.facebook.com/groups/137799891494707

Help support the show

https://anchor.fm/hivemindcrm/support

 

--- Support this podcast: https://podcasters.spotify.com/pod/show/hivemindcrm/support

Transcript

0:00 Hey, welcome to today's episode of the hybrid plus podcast. I'm your host Daniel Martinez. Today I have a special guests returning Mr. Kevin a mosh if you have not seen the episode, go check it out. I believe it's episode 271. Please go check it out. It's a good episode, we talked about a lot of bank financing and the financial side of real estate. I believe the episode is called get your money out of Wall Street into main street. So please go check it out. Today we're doing a deal breakdown. Kevin, what is your cool, interesting story that you have in real estate? 0:31 Yeah, Daniel. First of all, I want to say thank you so much for bringing me back on I had such a great time with that first, the first podcast that we did together. So I appreciate you, you bring me back on. So the story and we talked a lot about financing, and that and the last one. So this one doesn't really have to do with financing. But it's a really fun strategy that I used and implemented to buy a Mountain House for my own family to use in Summit County in Colorado. So it's right, it's a great location right on the lake and on Lake Dillon in in Dillon. And the way I found this was the trustee. So we're a deed of trust state, which just means that the foreclosure process is through advertisement. And then the trustee of the county can auction the property off and to the highest bidder and the neck and pay off the lender. If there is no higher bidders, the lender gets the property back. So that's kind of how the process on the foreclosure works with a deed of trust state and a trustee. But they publish all of this right so I found this property on the trustees website. And so I knew it was headed into foreclosure. And I did an oni owners and encumbrance reports I wanted to know who owned it, what other liens were in place. I'm trying to figure out what position was foreclosing and, and how much we could expect for bid amounts and that kind of thing. And what I found was, there's a 220 I'm rounding here $220,000 first mortgage from Wells Fargo that was the one that was foreclosing, so it was a first mortgage foreclosing behind that with a line of credit for 175,000. At least that's what the maximum allowable credit is your line of credit could be kind of anything, it's like a credit card, you can use it pay down use it pay down. So we didn't really know the amount of the debt, but we knew it was recorded for 175. And then get this Daniel 2:18 going because I already know you're going with this. And I mentioned this on Twitter. But I'm so glad to be covering this is such an amazing outing. Personal fun. Okay. I don't want to have to. 2:29 So there's a third position lien on the property. But this is a judgment. So judgment would be there's a lawsuit between two parties and the winner of it gets a judgment and then they recorded against the property. The judgment Daniel was $64 million. Huge number. And so I'm like, well, there's no redemption rights here. Because of the way the foreclosure process works is the first forecloses then the second has eight days they can redeem, which means pay off the verse of the negative house. If there's someone behind them, then they have eight days after that, and they get paid off the first and the second and then they would get the house and just kind of goes all the way in the order. Colorado has no owner redemption, right. So once it's it goes to auction the owners out. So here we are $64 million judgment. I'm like, well, maybe I could just rent their redemption rights or buy the redemption rights or we could partner because I want the house. So I wanted to get into that third position. 64 million, even if there was any other liens, doesn't matter, because no one is going to redeem a $64 million judgment. So that was the that's where the I guess in the pecking order, that judgment is where it was all going to end. So that's what's super important to me. So we ended up calling the the attorney for the judgment holder found out it was a $5 million $5 million judgment from years ago that just was accruing interest and fees and penalties and all of this. Now it's 64 million, but the loss it was five. We said that's that's too much. Can we at least the rights like we want to we want the property and it was once just by the judgment and we said well, okay, we take 80 grand and do no negotiation. They said yes, they didn't even negotiate. So we wrote it up. I was like, I got it. Let's get this under contract right now. So we got a we got a $64 million judgment under contract for $80,000. Now, that sounds crazy. I'm never gonna get that 64 million, right? There's no There's no value in that judgment, because the debtor is not collectible. You can't get it. But it did put me in the position to redeem, do home run. It's about a $1.4 million property, maybe a little bit more to 21st 175 second, my investment of 80 grand that's the order. Well, it turns out, the guy didn't let it go to foreclosure. He brought up all the back payments with Wells Fargo. So now it's not in foreclosure. They call it curing, he cured the loan. He didn't even know I own this judgment. And then now my strategy has blown up I can't redeem because there's no foreclosure. So now I have to foreclose from a judgment in a third position. So we start the foreclosure process. So as we start negotiating with the owner, there's homestead rights. Now you waive homestead rights when you sign a mortgage or deed of trust, which just basically means the government is going to protect a certain amount of your equity. And so I had no no no waiver there. So I had to pay him his homestead rights was, which was 105,000. So now the 2/21 175 second 105, homestead, and then I can get the property. Good news is he did decide to negotiate with me he tried to defend the foreclosure did not work. We didn't leave the house for $105,000. homestead, if I agreed to forgive the $64 million judgment, which is exactly what I was going to do. Anyway, I'm not I'm never going to collect on that. So I forgave the judgment, and we ended up getting the house deeded to us. One little cherry on top top here, though, when I go to get the payoffs for all the lenders, that line of credit was only about 50. Grand drawn on. So $175,000 line of credit, he actually only owed 50. So pretty sweetheart deal. We totally remodeled the entire thing. And now we're in a beautiful vacation home in Summit County, for under 600,000. It's worth more than twice that. And it's just because we were looking for a deal, right? We looked at the trustees website, and we were creative with with how we're going to acquire it. So how's that for a deal for you show the 6:27 amazing, amazing, okay, so 6:32 there's a lot to unpack there. I know it. No, no, 6:34 it's you structured perfectly. So like, on Twitter, literally, two weeks ago, somebody posted on Twitter, those $200 million going to auction. And I tweeted, there's a place to get those deals cheaper than what they're going to auction. And people were like dumbfounded. And I'm like, I'm not answering this question. Yeah, not gonna head to this. Like don't let it go to auction. That's right. Don't let it go to auction. This is good. So you can pick it up before it goes to auction and one is talking to the seller. But the other option is hitting the lien holder and the judgments. I knew that you know that. But the world doesn't know that. So forever. Listen to this episode. You got a keys to a million dollar million dollar problem, probably a billion dollar problem. And I got to do is pay attention to the judgments and find good property that the judgments are cheaper than what the property is worth. You can come into a windfall of cheap property just by doing extra work. 7:32 Yeah, if you feel if you see anything that's a little out of the ordinary call someone to help you. 7:37 That is an amazing story. I did not expect the story to come up in this but I'm so glad it did. This is perfection right there. That is such an amazing story. Congratulations on your on your dream house. Probably. Yeah, it's beautiful. In the mountains I used to we're using 7:55 it we're gonna rent it out in the summer because we our kids are in like, soccer and lacrosse and we're in tournaments every you know, every weekend, but in the winter, we're up there every weekend. 8:05 Man I'm gonna have to Can I stay in there? Sure. Come on. I'm passing through number and may 8:13 please email me email me we'll we'll get that set up. 8:18 This is so amazing. I love real estate. I love podcasting. I love everything that contributes to this amazing story that is Kevin Thank you so much for that story. Like as soon as he's going over I think he's going this is this is this is priceless. Priceless. Priceless. Priceless real estate is such a fascinating asset class and I hope you learn more about it daily. I hope you learned a lot from this episode. Thank you Kevin for sharing that story with me. I am so glad you did. I think there'll be a lot of people that have you did too but that is so so where can people find you online? I got piping into group that cow 8:59 Yeah, yeah, thank you so much again, Daniel for having me on. I had such a great time with you again, share that story. It's a fun story. I I'm proud of that and I like to share in that so I appreciate you people can find me at Pine financial group.com If you're interested in more stories like that are more strategies like that, how to buy properties, no money down how to find deals and not in the MLS any of that. You get all that information at YouTube, right? youtube.com backslash pine financial. 9:25 There you go. I hope you'll enjoy this episode. I know I did. Please go share with a friend please blow this episode up. I think it deserves it after this. I think I think everybody listening is better share with a friend at least one person because this is this is some some good information out there. That is 100% Fact 100% fact factual information so you're not getting everywhere you go. So please go share it. Subscribe, share with a friend. leave a review. Do all that stuff you know how to do we'll see on the next episode guys. We'll see you next time. Thanks for joining in. We'll see you have a good day guys. Bye

Daniel Esteban MartinezProfile Photo

Daniel Esteban Martinez

Host/ Ceo/ Speaker

I have been an entrepreneur since 2018. I come from a regular home just like most people. My dad worked on the roads in the Chicago area for over 30 years. He always taught me to work with my brain, instead of my body. Your body can only take so much abuse. I learned so much from my father. He always pushed me to work smarter and not harder.

I have owned and operated a trucking business for 2 years. I started learning real estate in 2019. Fell into the Data & Skiptracing business in 2020. My partner Anthony & I started Hivemind in 2021.

I have done a ton of different jobs coming up from painting, to door-to-door sales, telemarketing, truck driving, and loading trailers. What I learned most is that I want to stay in the digital business space. The leverage you can have delivering digital products to the marketplace can yield limitless possibilites.

I started The List Guys in 2020. It is a data and skiptracing service. We provide seller and buyers list nationwide. My clients have been getting great results and I am proud to help people killing it.

I started the Hive in 2021 with my partner Anthony Gaona. It is a real estate and business mastermind. It also comes with a all in one CRM, that can host unlimited websites and users.

Starting the Hivemind has been an amazing journey so far. Seeing one of our users make his 6 figure month in June 2021 leveraging our software, I know there will be plenty more to come!

Kevin AmolschProfile Photo

Kevin Amolsch

President

Kevin Amolsch formed Pine Financial Group, Inc in 2008 after leaving a small mortgage company as the senior loan officer for residential lending. Kevin has a degree in Finance which he obtained after serving four years in the US Army. Kevin started out in banking, working at First Bank in the lending department while in school. From there he started his first real estate investment company, which is still active today.

After college Kevin spent two years working with Wall Street as a mortgage bond analyst before leaving to work as a loan officer with real estate investors full time. He and his companies have closed on over 2,200 transactions as a buyer, seller or private money lender. Kevin and Pine Financial Group, Inc have access to over $130 million in private equity and the business continues to see strong growth. He has spent more than 20 years as a real estate investor and 16 years in real estate lending. He is the author of 45-Day Investor and frequent speaker and has been quoted in The Las Vegas Review Journal, The Denver Post, The Denver Business Journal, Forbes, and Yahoo Real Estate.