All Forum Posts by: Account Closed

Maintenance costs are not necessarily capital expenditures. But they kind of blend together sometimes. Your reserve should include both. Capex confers a benefit on the property over a long period e.g. installing a roof, replacing a driveway. Maintenance costs confer a short term benefit e.g. the landscaper cuts the grass but next week it has to be cut again.

Yeah give me the bank number, too.

You can find those deals in Cleveland.  There's a reason for the price at this location.  Crime Heat Map ?  That's hilarious.  Talk to someone who has boots on the ground at E. 143rd & Lakeshore.

Lots of legal compliance but could be lucrative. Be sure to comply with the American with Disabilities Act (ADA) and Fair Housing laws. There are likely HUD regulations as well.

The JV partners should collaborate and agree on contract terms acceptable to all. Each JV partner should retain his/her own attorney.

Find an experienced real estate attorney. Seriously. You shouldn't need to educate your attorney. 

Hard money lenders. Banks don't want these deals. 

Review with and consult a CPA. It will save you a lot of time and money.

You should consult with an experienced real estate attorney in your area.  

Any and all funds should be held by a disinterested third party such as an escrow agent/title company.  None of the parties to the transactions should hold funds. Avoid having a real estate broker holding any funds including earnest money. The contract language should set forth who holds funds in escrow. 

A lease-option is actually two separate agreements - 1. a lease;  2. an option.  The option should be attached to and made a part of the lease.