All Forum Posts by: Andrew S.

@Whitney D. 

 Before you start to panic, have your PM contact the tenant immediately and ask them to switch utilities as outlined in their lease.  Also, ask for full reimbursement of the applicable charges.  While the nightmare scenarios outlined by @Joel Owens  definitely exist (and unfortunately are not rare), chances are that this is just an oversight on the tenant's part.  I have had this scenario happen a couple of times too but was able to resolve it just fine.  That said, I definitely watch these transitions much more diligently than I did before...

I'm on my third delayed financing deal right now - like it a lot. Yes, will work for #6-10. However, you only get 70% of ARV "up to the original purchase price plus closing cost". So the most you can get out for this example is a little over 50K.

(That's assuming there isn't a minimum loan amount)

I'd probably not negotiate on items that were known and obvious on the first walk-through.  In my opinion, inspections are to uncover (and possible repair or renegotiate) items that are not easily recognized at the time the offer is made/accepted.  Trying to squeeze out extra concessions after the fact is LAME (though not uncommon...).

That said, you'll have to decide how badly you want to sell - I'd push back.  If he caves, fine.  If he walks go to planB.  He may just be testing the waters....

 I agree with Jon - talk to the attorney first unless you REALLY know what you are doing.  You don't want to fig something together that isn;t right and then the attorney has to try to first undo your mistakes before he can go in and actually take over the case.  The more complicated, the more expensive it will be  

reduced HOA certainly helps. Still doesn't look like there is any meat on the bone to me, but hey, that's what REI is all about: find solutions others don't see!

If you do go ahead with Sub2 then check out the many recent threads on what the potential pitfalls are with new regulations, using loan servicers, etc. (for example @Bill Gulley 

 posts) an how to structure without getting yourself into hot water

Thanks @Chris Martin @Dion DePaoli @Jon Holdman @Bill Gulley 

 et all. for taking the time for such a great discussion!  Huge learning opportunity (and I'm not even planning on doing sub2 or wraps....)! These are the types of threads that set this BP board apart.

When done correctly, this is no issue at all.  I recently replaced all the windows of my personal residence and other than moving a couple of pieces of furniture that were directly in front of the windows, no impact.  

Edit: @Chris Martin has a great point about checking for lead if the property is older

Nothing wrong with that idea in principle although it begs the question: if its that easy to make money in this putative other business, why not just focus on THAT?

Could be any number of things that scare people off.  Leaking underground oil tanks, zoning issues, third-party easements, lead paint or asbestos, foundation problems, title issues, flood zone reclassification, etc etc

Some of these could prevent financing but are solvable long term, so perhaps if you can pay cash you'd be OK.  Others, I probably would never touch, not even if the the price was amazing.  Example: oil tanks scare the heck out of me because of open-ended liability concerns - although other investors are perfectly comfortable with the risks under the right circumstances.

Definitely check it out - usually there is a reason for a property sitting like this but sometimes you can turn the rocks into gold.  I have found (alert: drawing from somewhat limited experience!) that some of the best deals tend to be those where I'm willing to put in that extra effort other investors don't want to bother with.

Try Dave Wiesing  [email protected]