All Forum Posts by: Alan Grobmeier

@Daniel Fazio.  Price is usually the key.  If it hasn't rented, price is too high.  Other factors could be time of year and scarcity or surplus,

@Tyler Jahnke  Any updates?

@Flora Granter  There are a couple of ways to mitigate your risk:

1)  Larger than normal deposit.

2)  Month to month lease.

Explain your situation with the tenant.  If they are willing to prove themselves, they will rent from you.  If they are trying to scam you, they won't.

AG

I'd get a real estate attorney and see if you can sue the bank for non-disclosure.   You will have to prove that someone at the bank knew.  Also, sometimes properties will be sold as-is, no spuds, no clu report.   Horrifying.   Good luck.   

I 'get' that it is easier to wire the funds, but has anyone thought of a certified check or money order written to the title company instead?  I still do business in that manner.  IMHO it's safer.  ;-)

1.5 million ppl in 1985, 800k today.  Lots of empty places.

Check w your cpa.  I have one property in CA and was told the llc fee is $800 per YEAR.  You may want to go the trust route.

Eviction.  Get an attorney.

@Allie Pfannenstiel  If the present owner SOLD her the property (via contract for deed, land contract), a bank would look on that history.  Since it was a rental, the bank is not going to look at that the same way.

Self-employment puts another spin on things and is sometimes difficult to finance.

You definitely need a mortgage broker to help you as the option-exercise time period is usually a window and doesn't last forever.  Her worst case scenario is to sell the property/option and walk away with some money if your numbers are correct.

The person who gave her the lease option will probably not seller finance the property.  

There are people out there that use lease options as a business model, knowing that most will not be able to buy the property at the end of the option period.  

If the seller was to offer owner financing, it would probably not be at terms acceptable to your mom.   The price would not be 115k, it would be 180k. After all, the owner has nothing to lose if your mom just walks away.  

@Ericka G. As far as debt goes, I would take on more debt if I were you. Tax wise you are getting killed. I have found, thru a number of mathematical models I have run, that 30-70% LTV is a 'sweet spot' where rent - (piti + depreciation + expenses) = zero added tax. Georgia, I don't think, is punishing on state income taxes. But some states, such as CA, NY are punishing on taxes. To the point that you want to show a paper loss while pocketing the "depreciation".