All Forum Posts by: Bill Gulley

I just got a vote off this old thread, that's why I'm bumping it.

Please get this straight contract assigners.......NOT all contract can be assigned, there are different types of contracts, http://www.lawsofbusiness.com/2013/08/types-of-con...

Read it. Bilateral and unilateral contracts, any financing contract is a unilateral contract and it may NOT be assigned without consent of the party owed. 

A real estate sale contract is a bilateral agreement, it can be assigned under certain circumstances, such as having a valid contract where the buyer has the intent and ability to perform. If you're a wholesaler, that's probably not you as the buyer. :) 

Yesterday!

Applicant: I'd rather give you first month's and the deposit today, if I don't I'm afraid I might spend it!

Really? Okay, pay me a month ahead of time and sign this automatic draft.....what day does your VA Check come in....on the first right? Ok, we will draft it on the second, no problem! :)

All title companies have a title attorney on retainer or in office or within the company. If a settlement agent sees something questionable, they get an answer, so you will be under an attorney's watchful eye in a title company.

Title companies are insurance companies, the owner of that brokerage has an insurance license and to get into an agency you will need experience, you won't get a  title company to underwrite for them after taking a course or reading a book. Often, the insurance agent IS an attorney.

Title companies not only issue title coverage but they also insure settlement, acts of their agents, escrow accounts and issue "insured closing letters" covering these matters.

If you close with any free lancing attorney make sure you get an insured closing letter. 

Either is difficult to get a claim from, but an attorney will fight to keep their claims from E&O being paid, title insurance companies are in a different boat, still difficult to get money out of them but they pay out millions every year.......just say'n who do you want ensuring that tings are done correctly? Your local attorney or deep pockets title companies? That is, IF they mess up!

In Little Rock you can go to American Title, they are very good, price is competitive.

What I found is that an attorney, who is an insured closing agent may have a competitive price as to settlement, but many use that to advise on tweaking the deal and earning additional fees, they can also tweak the deal so much that the deal blows up, so watch out for this angle using an attorney. I used an attorney here and he and I got along great, no issues,  so there are very good ones out there.    But, understand, you don't get "legal advice" simply by having an attorney close a deal!

As to quit claim deeds, all states allow them, when used properly, the issue is the broken chain of warranted title and it's in the title insurance arena where the problem is, not from state laws. :)

@Jef 

@Jeff B.undefined

has a great angle there by partitioning the property if you can meet the minimum requirements for a legal lot. A 2 tri-plex's on their own lot is more marketable than 2 buildings on one lot, that adds value. 

Through that process, they may require lender's approval to set the loan up with cross colateralization on two new legal descriptions, talk to any lender prior to any application process. Your lender should not delay you, it's better for them as well.

This also open you up for conventional  financing, you're in the SFD category with 3 units.

Allocation of depreciation can easily be determined by your accountant and changed over as ownership doesn't change. A new valuation may be assessed for your book value after the process, upon filing, if so, your depreciation might be more, but your accountant may want to add the value to the lot, in which case depreciation won't change.   

Nothing really strange about cluster housing on one parcel, by unconventional I meant you're probably not a PUD at 6 units as a conventional MF development, It's an unconventional use of one parcel having separate living dwellings, and I've had several so they are not so uncommon.

That is a great way to add value simply by redefining parcels, it's what it could be, not what it is. :) 

Question is what does your broker think......wholesaling for an agent is nothing more than a net listing arrangement, run that by your broker. You avoid the issues by taking title in your name, then sell it, several ways to do that and stay  legal, ethical and safeguard your reputation. Good luck :)   

While I bought at that age, an installment contract, looking back I was just lucky to have help in fixing the place and selling it.  But, sellers need to understand, regardless of how badly they want to grab some cash and sell, that everyone is not ready or able to buy. 

As a lender I never discriminated on age, but I do as to income,  verifiable income, credit history, ability to pay and collateral. 

There is no good reason to enter into a sale transaction with anyone who can't buy, that becomes a predatory dealing and lending matter. 

Deal with his parents, they might buy it and let them deal with him. Good luck :)  

Good comments above, my CRE experience is more about what it can be, not what it is and the ROI is upon the exit, not holding it.

Be careful buying based on CAP rates, usually you're wrong and you won't know until time passes and never use the seller's rate, it won't be the same for you. You're guessing, look at cash on cash short term. Leverage the deal and let others pay the tab. Good luck :)

The key is to the deed, not the number of units so much, your approach should be the income approach, then market, then the cost approach with depreciation. The most weight will be the income approach on this property as the market will be difficult to value since it's unconventional. :)

I'm a voice over artist for Pamela Anderson and before that I sold pots and pans door to door.

The rest you can read my profile.

I'll say too, my big money was not from owning real estate but it set the stage to partner in various other business concerns and financing.  Gotta be flexible, opportunity is all around you.  Good luck :)

Need to speak to your attorney before entering a residence with a body cam, understand the expectation of privacy and what you can and can't film in private. 

Disclose that you have a camera going, audio laws are different than video, they don't apply to law enforcement but they do with you.

And,  have a written policy as to keeping video, destroying video, the use of the tapes or stored data and who is authorized access of the product. Limited access and safekeeping can be important in court. Time date stamp and don't turn it off and on during inspections. 

Speak to your attorney, it's not as easy as you may think.....good luck :)