All Forum Posts by: Barry Cooley

@Denise Evans

Thank you again. You have a great reputation around these parts and your input is greatly appreciated!

@Denise Evans

Thank you for your reply.

As much as I understand it at this point, that is correct. "A" holds the mortgage, and the property is listed in "B's" name in the county records. I only talked to "A" for a few minutes, as he was on his way to work. 

"A" is not an investor, and looking at the tax records, I believe this was an inherited property, which he sold as a seller finance deal. I'm working on ARV now, and it appears that will be around $120,000. He sold the property in 2011 for $75,000.

I don't know all the ins and outs of Dodd-Frank, but I'm assuming it wouldn't apply in this case, if this is the only seller finance that has has done.

Good morning BP. I am a new investor looking for my first deal. I have ran into a situation that I would like the opinion of the BP community.

I received a call from a gentleman this morning that would like to sell his property. So here is the situation: He seller financed his property to an individual who is about 40 days behind on the mortgage payment and will not provide proof of insurance coverage. The deed is in the buyers name. The seller doesn't have a landlord mindset and just wants out of the situation. I would say the  property is B class in a B class neighborhood. However, I have not seen the inside yet. We have not discussed purchase price, or really, much of anything yet. I wanted to get the opinion of more experienced investors as to how you would proceed with this, if at all. I know this isn't ideal for a first investment, but the way I see it, I could possibly help this gentleman out of his situation while possibly getting a good deal on the property. It is located in Athens, Alabama, which is a market outside of Huntsville, Alabama. Any advice would be greatly appreciated.

@Isabella Roland Good morning Isabella. All of these meetups are free, except the one at Legend Realty in Huntsville. It requires a membership, or, the last time I attended, you could pay $20/meeting. Brian Trippe out of Birmingham holds one also in Birmingham and Huntsville. He is the founder of ALAREIA. I attended his meeting last night in Birmingham. There are always many attendees and very useful information. A yearly membership to ALAREIA is only $49. Well worth the money. He normally doesn't hold meetings in Huntsville during Alabama football season...lol. However, when I talked to him last night, he is planning on holding a meeting in Huntsville on possibly a weekend night coming up soon. If you have any other questions, please let me know.

@Clark Spruill There are a few RE investor meetups/meetings that I know of in the area. There may be more. Madison County Real Estate Investors Association meets at Legend Realty in Huntsville. The next one is 10/4 @ 6pm. Athens Real Estate Investors Group is a new group that meets in Athens Alabama at 306 BBQ. The next meeting is scheduled for Tuesday 10/2 @ 5:30pm John Morey also holds one in Athens Alabama. It is an investor mixer at 25129 Providence Drive Athens Alabama. The next meeting is 9/18 starting at 6:30 p.m. Tennessee Valley Real Estate Investors meet on the 4th Monday of each month at Tim's Cajun Kitchen in Huntsville Alabama. The next meeting is scheduled for 9/24 starting at 7pm (6 p.m. for networking). Hope this helps.

@Dave Toelkes Dave, thank you for the reply. All of this sounds logical, and I will take your advice and talk to an attorney who specializes in this area. Thanks again.

Good afternoon BP members. I have a situation that I hope you will be able to help me with. 

My mother has been in a nursing home for over four years. During this time, her home has sat vacant. The property is in a life-estate in Alabama. Myself and my siblings are the heirs. We are considering putting a tenant in the home, but we are not sure of the tax consequences and the effect on Medicaid. Would the nursing home get the proceeds from rent? Would they know? If that is the case, in my opinion, that is still better than the house sitting vacant for any longer and deteriorating.

What would the tax consequences be? There are four siblings, including myself. Would rent be reported as income? If so, would we report it equally? Or, since the home belongs to her until her death, would rent need to be reported? I'm not trying to avoid taxes, I just don't know how this would work.

I'm sure I will have more questions, but thanks in advance for any input.

@Denise Evans

Thanks Denise. I will certainly do that!

Good morning. I'm a new investor in the North Alabama area. I asked for, and received comps from an online comp company. The comps were received from a local agent. I haven't talked to the agent yet, but all of the comps were for  3-bedroom two-bath homes, but the one that I am considering is 3 bedroom 1 bath. The property is in Athens, AL. In your opinion, how much should I deduct for one less bath? Thank you for your input. 

@Cameron Small Thanks Cameron. I will contact him also.