All Forum Posts by: John Adamkewitz

Congratulations Mark!

I'm working on the same thing but a while to go yet. It must be an awful good feeling. I think I'm jealous ;)

John

#2.

Man with sister of X-wife sounds like the beginning of a 48 hours episode.

The 2 dogs probably wont get arrested.

John

Update, It gets more complicated.

I went back for a second look and got more info from the "Manager". The rents are lower then I was told. Owner claimed $750 for the 4 rented units, actual rents are $600, $650, $650, $700. Units are beatup. I could spend 3-5k on each of the upper 4, the 2 lower units are not even close to ready, flooring cabinets ect.

Owner drops other shoe: The commercial lender has decided to "Not renew smaller property loans" (As per owner)

He has received a "Foreclosure notice" yesterday, He also mentioned the bank did an "Environmental exam" a few days ago.

He owes $258k on the property, an educated guess tells Me it will appraise between 175k-225k depending on who wants the appraisal.

I know most would run away and I may do that. But first I have question.

Do foreclosed commercial mortgages still have the listing exposure rules that conventional mortgages have? i.e. Has to be listed for so long before they can take an offer?

Whats really going on here? How can I find out?

John

Welcome fellow Cheesehead!

Glad You found Your way here, it's addicting.

John

Thank You Guy's, I agree with the Grandfathering deal.

The building is 17 yrs old and the ordinance is 10 yrs old. Last transfer 9 yrs ago. The strange part is why the unit's are empty, and why did the owner mention "a parking problem"?

He has been "less than truthful" about many other things as well. I am also starting to believe the 2 lower units may have been added.

11 parking spaces for 6 unit's, is asking for tenant arguments. Somthing is rotten here and I just have to find out what.

John

I looked at an interesting but complicated fsbo, multi property yesterday and I'm considering an offer.

It was built as a 6 unit with 2, 1/1's underground, with legal egress windows in the bedrooms. It has the 4 upper 2/1 unit's rented with the 2 lower 1/1 unit's vacant.

The reason for the 2 vacancy's, is a Multi Family Parking Ordinance that states, "One parking space for each unit and an additional space for each bedroom". The ordinance was adopted prior to the last sale. I only count 11 parking spaces currently, with little room for any additional spaces. Leaving 1 space short just to comply with the 4 unit's currently rented. Penalty's can be $100 per day, per violation.

The anxious owner of 9 years lives 125 miles away and is financed with commercial money, the property is also being overtaxed as a 6 unit, when it cannot legally be a 6 unit because of the parking issue. I would argue the property taxes on a grm and purchase price basis and probably win.

If I can buy this at a 4 unit price, how would I get it to finance as a 4 unit and get the more favorable terms? Then revisit the parking issue later, and what effect would turning a conventional financed property, into a 6 unit have on the mortgage?

John

Hey Kevin, sometimes They'll counter, sometimes They'll reject, sometimes You'll hear nothing. Ask the listing agent about the offer review schedule on this property, it seems to have no rhyme or reason to Me. I've been told that there are actually scheduled "offer review meetings". Remember Your dealing with bureaucracy.

The first thing I do is to go directly to the Homepath site and look at the listing Myself. I've seen property under contract still being shown. This is just what I think I know.

John

Hi Kevin, on a Homepath property it's probably not going to make much difference if You have a buyers agent or not. Personally I prefer to always use My own agent, but the Homepath procedure seems pretty robotic, with no emotion involved other than the listing agent wanting to make a deal.

I do see one advantage to dealing directly with the Listing agent however, and that is that all information received, has only gone thru one person instead of two, i.e. listing to buyers agent to buyer.

This two person path, always keeps Me wondering about accuracy. Just My opinion.

John