@Terry Free has a post in another forum category that someone should come up with a real estate investing video game. While I am no computer programmer, (I'm the guy who calls support and they ask if it's plugged in... And it isn't) I think a game that could get your creative juices flowing would be amazing. Sooo... Here's the game: I'm going to give you a real life scenario from one of my deals and see how you would purchase it. Best scenario as determined by votes wins the coveted Super-Duper Supreme Real Investor Grand Poobah award!! (I don't think BP has one of those yet but I think @Joshua Dorkin could get right on that!! If you want I'll tell you at the end how I did buy it. Very likely your scenario will be better, But just like the lottery the only chance at winning happens if you play. Here we go: Elderly lady has a 10 unit apt building listed in Central Florida for 350k in 04. She and her Husband had owned it for years before he passed away and the property fell into disrepair. There is a code enforcement fine on the property at $200 per day, currently at just over 300k. The city wants to foreclose on their code lien and demolish the building in order to make a parking lot for their puclic gymnasium next door. The only thing that is stopping them at the moment is that there is a small first mtg with Bank of America for 18k... Which just started a foreclosure process as it is about a year behind in payments. So what would you do? P.S. Because I want your best scenarios and as true to life as possible, if you have any questions before presenting your scenario, please feel free to ask. I probably know the answer and if not, I will make it up. ... And GO!!!

I seriously doubt the code enforcement lien is in second position. It is a municipal lien which in most areas puts it in front of the bank. You haven't said what the property is worth. What are current rents, what is a pro forma for a re-positioned building and what would the cost of renovations be. I would offer a price that makes it a good deal now. I would then negotiate to pay a net to seller price so that I could then negotiate with the bank and the city. My guess is the city doesn't normally actually charge $200 a day (although it may be allowed by law) The law is very likely applied unevenly. Presuming that is true I would challenge the code violation bill on the fact that it was discrimination. Someone in the building or in title must be of some protected class. I would argue that the only reason you are charging $200 a day on this building when hundreds of buildings around the city are not charge that much is because of the discrimination. I would also be lobbying city official and elected representatives, to sway them onto my side. Along the way I would find the "Highest and best use' of the property, then figure the value of the property based on what it could be used for. The city cannot take it without compensating the owner. If the property is valuable enough and you can prove it, this may be leverage stop encourage the city to rethink their plan. My guess is they expect to get if for nothing via the trumped up bogus code fines. Once they realize they will have to come out of pocket for the real value they may reconsider.

Maybe you could come to an agreement with the Seller regarding having first option to buy sub-to, and suggest asking if the Seller would agree with asking someone like Linda Thomas (or other Erin Brockovich type) to poke a stick at the County arguing conflict-of-interest or patently unfair practices or some such? http://flaglerlive.com/65101/code-enforcement-laws...

Good Morning David....There is an attorney in Indianapolis who writes about crowdfunding, (please google him)...There are lots of regulations related to it, but if it continues to past muster in the legislative processes, this may be viable options in the future...I don't know much about it, but like the concept that lots of people can participate, because it opens up avenues for people to invest in real estate. The press release brings media attention, and this can be a win-win situation for everybody. Media is a powerful way to create decisional frameworks. By this I mean, we often think differently about things once the media becomes involves, it influences our decision making processes. The difference, unfortunately, between right and wrong is now a culturally derived and global influenced concept. I am not saying that I agree with it, but drones are coming and we as a society will have to decide how we want to deal with them. The municipality could work with "us" as the co-owners, the older folks in the community can gain respect and acknowledgement (because they see that if they might fall on hard times, someone might come with creative solutions), the bank might be persuaded to do the right thing or the next best right thing (banks owe us a great deal, particularly with the too big to fail fiasco), the college student gains experience for real world problems (this should help when looking for a job), and the heirs of the widow can be taken care of (this is important because children have memories and pass the stories down to their children). So much of the world's problem is related to how much we have forgotten this simple fact, children remember what happened to their loved ones. We have to create a better world so that children do not grow up disheartened, devoid of caring and hope. The beauty of our country is that we should honor the legacies of immigrant and non-immigrant work---the average everyday people who we work with and see in the grocery stores. I believe that there is a way to combine my social activist heart, my compassion as an artist and psychologist, and my investment goals. I have had lots of help along the way and feel blessed by all of the kindness that was shown to me. Every field I entered someone opened their heart to touch me, see me, and to help me. I also think that we can create a better world when we help others....not only teaching the person how to fish but making sure that the children in the village learn it to. Sorry I was so long winded, the only way I want to be poobah is if I can share the poobah title with everyone. Everyone who took the time to write, to connect, to share. Ok, I am off to get my breakfast.....thanks for touching my heart.

Just an audience member, sitting here with my popcorn. Ok, sorry only trying to be witty. Scenario 1: I would call BoA and work out a deal with them, to pay them off and to secure new financing. Scenario 2: I would co-own the property with the widow, explore crowdfunding the property or find angel investors. Some of the cash flow would go to the widow for her retirement fund. I don't want her to lose everything, and I want her heirs to benefit from the work of this couple. If Scenario Two is agreed to--then I would hire a college student to help me with a press release and marketing campaign. There would be pictures of me and the widow, and the story of how I can work with older and wiser folks who may have come on hard times with developing partnerships. A win -win situation. This campaign would also mention BoA if they agreed to participate, if not, I might do a follow up story.

How would you buy this? Best creative purchase scenario wins!!

Ceasar Blackman

Real Estate Agent · Orlando, FL · Member since 2013 · 270 posts · 40 votes

How would you buy this? Best creative purchase scenario wins!!

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