All Forum Posts by: Bruce Lynn

Try ZenBank....no branch...no cash.

It has happened before...I don't think you should do this if you can't close with cash....but if you can close with cash, but prefer to use financing, then yes you could do this.....make the offer with cash, but close with financing.  it's the same bottom line to a seller.  There is some risk to that strategy of course and we could talk you through that, but in this market there are people who do that.   Also nice to let the seller know that is your intention as well, so they are not surprised by an appraiser or if the lender requires changes to the contract.

What I see most often with FSBOs is that they are over priced, so you have to watch out for that.  Normally it seems about 10% too high, but of course every case is different.  You can always pay your own agent if you think the deal is really too good to pass up and you still want representation.   One idea is that you might offer cash and be ready to close with cash, but try to use financing if that is really what you want to do and finance it before you close.  Choose a lender that closes on time, so that you don't waste money on an appraisal you can't use.

You probably need to get into it more with the lender.  Could be lots of reasons for the 25% down.

1. It is a non-warrantable condo.  Typically these require bigger down payments even for primary residence.  25% is normal on non-warrantable.

2.Maybe it resolves your debt-to-income ratio.

3.Maybe they think it is an investment property for 2nd residence for you.  Those both typically require higher down payments.

4.Could be a number of other issues.

Just don't know without talking to your lender.

Sounds like a wholesale.....often you'll do better selling retail price wise and profit wise.  If you are just looking to get out quick at a reduced price than line up 10 wholesales to all come see your property at the same time and take the highest bid.  They'll close quick, pay cash, and no repairs.  Of course you want to deal with one that will actually close and not bail on you if they can't resale.  Those people just waste your time, and thats probably 75% of the wholesalers around.

Of course.....few tenants like to water the yard.  Even if it is in the lease.

Good luck holding them accountable.....95/100 if they had much money they'd be buying instead of leasing.

You can have strategies....but they don't work 100% of the time.

You can have a sprinkler system.....you can set it and lock the control box.

You can write specifications in the lease.

Think about court...you have to have evidence.....how are you going to prove it was their negligence that caused the problem?

How do you know if they watered or not.  What evidence do you have that it is just not bad dirt?

How do you prove they knew about a problem or didn't?

At what point was it a problem....at the time it cracks?

Did you do anything to help prevent problems?....like add drainage and gutters?   Did you add sprinklers?

One thing that can help you is to do periodic inspections....maybe quarterly.   Look outside and inside.   Try to head off the problem before it starts.

Just part of the fun being a landlord.

Then again if you can prove the negligence and damages you may win your day in court....but collecting your judgement is a whole other issue.

After all the headaches of court and then not getting paid, you might be better off just fixing the issue and moving on to the next tenant.

1.Knock the door.

2.Skip trace the owner.

Just a thought....if you can in fact buy at the tax sale you may get it cheaper and with non-governmental liens wiped out....but perhaps with a right of redemption.

Before the sale you might pay more, but then maybe you are the only bidder and no redemption period.

Call first before you ever send anything.   Don't waste money on mailings.

You need to also find out if they have a mortgage or any liens on the house.

Where's the house in Dallas?  What part?

Use it to open a stock account at someplace like TD Ameritrade, Edward Jones, Fidelity, or Schwab.  Keep the cash in the account.  May take 2-3 days to clear or a week to clear.  When he is ready to buy the next house have them cut checks from that account to seller or title company.  There are banks that allow non-citizens and non-residents to open accounts.  First I would check to see if any US bank has branches in his country.  Typically those are banks like Citi, Bankof America, HSBC, BBVA.  If that is not an option, then try the online banks like Ally.   If he can visit, I would just go from branch to branch until you find one that will open an account.   I've done it plenty of times with overseas customers.   I've had one Wells Fargo branch turn me down, only to go to the next one down the street and not even bat an eye.   Depends sometimes who you get, what their knowledge is, if they know the rules or don't, if they're having a good day or not.

Any chance he could use the same title company on the next transaction?  Would they take the check back?

I'm sorry your were offended by the scam information above.  It is a pretty common scam.  Hey you....I can't cash this check.  Can you put it in your bank account?  I'll give you $1000 or 20%  to do that.  Then you wire transfer me the balance to my account.  You do that, and a week later your banks says the check bounced and you owe them the money.  So we're just trying to help you out.  That your friend is really really really your friend, that you trust 100% and is not going to get you in trouble and take your money.  If the money is too easy or if it just sounds like an incredible opportunity...it probably is a scam.   Be careful, that's all we're saying.