All Forum Posts by: Joel Ray Cotton

@Account Closed that is where I am at now. Can you help me with where to find the search of jurisdiction, filing number and trustees phone number? Below is what I got from my title company so far. 

19. Satisfaction and release of Deed of Trust executed by Marie Sutton, a single person, to trustee for

Transamerica Financial Services, a California Corporation, recorded November 4, 1996 in Book 10992 page

345, to secure $31,003.39 and any other amounts payable under the terms thereof. (prior owner) (as to parcel

1)

I am purchasing a property in St. Louis that has a Deed of Trust being held by TransAmerica Financial Services, A California Corporation. That company is bankrupt, and that deed doesnt expire until 2031. What are my options here? It looks like in the 80s the past owner borrowed money against the properties and then that company went bankrupt.  I cant get a Deed of Release as that company is no longer around. 

There are a ton of cases that went after them in the past before they were bankrupt for ****** lending practices.  Doesnt make me feel good about my 401K being with TransAmerica now, but thats beside the point.

https://caselaw.findlaw.com/mo-supreme-court/10922...

https://law.justia.com/cases/california/court-of-a...

https://law.justia.com/cases/arizona/supreme-court...

Anyone have any advice on how to handle this?

I am looking to raise the rent on some tenants that are underneath market by about $200 but also are in units that are fairly outdated. I am planning on raising the rent by $50 on their lease renewal.

Currently trying to put together a menu of upgrades to offer the tenants. Therefore I can weed out the people that are here because they want the cheapest apartment and the people that wouldnt mind LVP flooring, upgraded counters, appliances, bathroom fixtures. (Each option being different cost) The cost to the tenant is determined by taking amount it will cost me and add 20% profit and then divide by 36 and that is their rent number. 

Moving is a pain but if I can offer to upgrades to the units I feel like tenants are more likely to stay because they can justify customizing to their liking. 

Ultimately the goal would be to stay under the Safe Harbor Rule so I can write it all off in that tax year but they are paying for it either way so I am good.

Any ideas on where to find possible upgrade menus that have been developed already?

@Jay Hinrichs Yeah I called the written one instead of that picture you see above and asked for an explaination. She knocked another $100 off.

@Joe Splitrock Isnt there a loophole that allows you to depreciate any all expenses related to putting the property into service the first year you own the property? Basically if the unit is empty when purchase it and you need to make upgrades. I believe you can depreciate those expenses 100% if you do that prior to filling the unit.

@Timothy W. how do you get the Insurance to Value and how do you present that? Is there a database/excel sheet/rule of thumb list I can use? 

Following, would love someone to let me into their world and share all these tips and tricks.

@Braxton L. Bowen, Jr. I am wondering what fees a title company typically charge. As these charges seem fair but not apples to apples. The title service charge on the second one is $1000 but what the first doesnt seem to have that. 

The first also has a really high owners policy, compared to the second but doesnt have that title charge. 

I am purchasing a deal for 285k, loan at 228k and I am wondering if someone can help me see if these two company are apples to apples. The two estimates I have for the 6 properties are as follows. They dont seem apples to apples to me.

Closing Fee $225.00

Closing Protection Letter $ 25.00

Owners Policy $765.00

Mortgage Policy $135.00

Erecording $ 4.00 per document

Recording $ 24.00 first page and 3.00 each additional page

@Michael Noto I would agree, the only problem with that is most attorneys I talked to stated that the eviction proceedings would start over. The timeline as it was explained to be was as follows: You file for eviction with the local court. You serve the tenant, and/or post on the door. The tenant then had 10 days to respond and a court date is set (usually 3 weeks after filing). If the tenant doesnt show up to court then a judgement is made and the tenant has 10 days to respond to the court with an excuse as to why they missed the date. A new date is then set usually 2-3 weeks later. After that judgement you file with the city for a sheriffs eviction with takes 3-5 days later you can change the locks. 

If a change in ownership takes place during any of this than the judgement is released, the grey area being when you file with the sheriff. 

@Mark H.  I am actually figuring that out, I am putting together a commercial loan for all 6. He is seller financing part of my downpayment, as such I was going to put him on a deed of trust of one of the properties until my debt to him is paid. I am just wondering if that will trigger a Transfer Upon Sale clause. I guess I have to talk to a title company. 

@Levi T. I owe you a beer. As this is an off market deal; In my due diligence before I signed a contract I got all lease contracts, and all of his internal books. On my contract I am putting that seller upon close owes buyer all deposits for units are due, all prepaid rent is due, all property not owned by tenants are transferred to buyer. I also gave another 14 day due diligence period clause for inspections, and appraisals as this is a commercial loan. Combining the cases is interesting and again, thank you for the thorough response. 

Update: Tenant has said that she will leave after the seller offered her money and a moving company. As she hasnt been reliable for the past 5 months I am sure she will change her mind as fast as the Missouri weather.

If anyone has any advice on how to handle the title with a seller finance deal please let me know. (Separate subject I know)