All Forum Posts by: John Roberts

I went back to my purchase contract and this was the only thing I saw about personal property remaining after closing.  I am not sure if a shed falls under this description of 'personal property'.  What do you guys think?

13. Personal Property. Items of personal property, including but not limited to window coverings, appliances,
manufactured homes, mobile homes, vehicles, spas, furniture, appliances, antennas, satellite dishes and garage door
openers now or hereafter located on the Property are not included in the transaction contemplated by the Agreement
or the purchase price unless the personal property is specifically described in the Agreement. Any personal property
at or on the Property may be owned by or subject to claims by third parties and therefore may be removed from the
Property prior to or after the Closing without any adjustment to the Purchase Price to be paid to Seller under the
Agreement. None of Seller, Auctioneer, any broker or any of their respective representatives, agents or assigns makes
any representations or warranties as to the ownership or condition of any personal property, or whether any personal
property is encumbered by any liens or security interests. Buyer assumes total responsibility for any personal property
remaining on the Property at the time of Closing, whether or not owned by Buyer. Buyer agrees for the benefit of Seller
that from and after Closing it will maintain, treat, process, store and/or dispose of any such personal property, including
personal property owned by others, in accordance with all applicable laws and regulations. Seller will not be responsible
for maintenance of exterior landscape.

Hi,

We purchased our first foreclosed house a little over a month ago via auction.  My son and son-in-law have been working on the house getting it ready to flip and are about halfway through renovations.  The daughter (mid 20's) of the previous owner show up today and wants to get her shed from the backyard.    She said that she paid for the shed with her money and was working out a deal to get it before the foreclosure, but got locked up in jail until now.  This is a pretty nice and large shed (probably 12x20 or so and worth around $5K).  Should I just let her have the shed so that I don't have to worry about her causing any problems in the future?  Will she see this as a weakness and keep coming back?  Do I say no, that it was purchased with the house?  Do I offer to give her some money for the shed?  What would you do?

This house is in a decent neighborhood and we will be looking to get about $150 - 175K for the house once it's completed.  We purchased it for $70K and will have about $30-40K in renovations.  If it doesn't sell right away, we will look to rent it out. 

 Hi David,

Thanks for the reply.  I am trying to make this a win-win for both of us.  He is asking almost double what the building is currently worth (according to nearby comps of similar commercial buildings).  I could offer $150K for 0% interest, but I think structuring it this way would help us both out.  I don't want to stretch it out over 30 years and I don't think he would want to either.

He is never going to sell the building for $150K, and I would never buy it for that amount outright.  If he agrees to seller finance it, he would get his money (via interest) and I would save on interest from a regular bank.  Win-Win for both of us (maybe?).  

This is my first time doing something like this, so maybe I am missing something or should structure it differently.

 I did the 12% rate so that I could keep the Purchase Price low ($100K) and he will also get his $150K via interest paid over the life of the loan.  

Hi Everyone.  Thanks for all of the advice and replies.

We have decided to offer him the $150K, but only through seller financing.  Let me know if this makes sense and if you would modify anything before I meet with him.  Should I structure this differently?  

My thinking on doing $100K (with $25k down) with a 12% interest rate was to keep the building's assessed value from increasing with a $150K sale price and it might save him in capital gains taxes as well. Not sure how the 12% interest rate would affect his taxes though.  I added the 5-year Prepayment penalty so that he knew he would get most of his interest money.  He may want to increase this, not sure.  My thought was to write him a check for the $46K after the 5-year prepayment clause is up and save another $15K on interest.  

Also, let me know of any advantages (benefits) that I could point out to him to make him more likely to accept our offer. 

 Hi Jim,  he is asking $150K for the building.  It has not been formally appraised.  We were just looking at comps that recently sold on the town square where we are located.

Thanks.

 Does Flipperforce offer timeclock punches in the app?  If not, does anyone use a software package that does this?  Either an all in one, or something that works well on the side.  Thanks.

Hi everyone.  Thanks for all of the advice.  Just to clear a couple of things up.  We haven't done an official appraisal.  We looked at comps of similar commercial buildings that sold around the square that we are on.  The appraised value from the county is about $40k.  Like I said, we are in a very rural area with a county population of a little over 8k people. 

We are currently no longer under a contract and are now month to month.  We didn't have another renewal and the landlord drug his feet trying to sell, so we are now month to month.

Let me know if you have any other questions.  Its nice seeing it from a different perspective.  We are pretty much at a stalemate right now since he put the 60 day clause that he can make us leave if he gets the building under contract to someone else.  I wish there were different options in town, but there just isn't anything.

thanks again.
 

Yeah, I understand that it is worth more to me than any other individual, but I still don't feel I should pay nearly double just because he thinks we have no other options.  We told him that we would go up to $100k, but he won't budge off of the $150k.  

what is the typical language in a lease that covers a landlord selling the building during your lease?

thanks again for all of the advice so far.

Hi Jeff.  Thanks for the advice. Like I said earlier, we are in a very rural and small town (our county has a population of 8160).  We do really well with sales and are always busy.  We employ on average about 20 people.  The building right now would appraise for $75-80K (which he admits).  He is asking for $150K just because we have a 'revenue-producing' business in this location.  I know that is not a whole lot of money in the grand scheme of things, but $70K over appraisal is still ludacris and not very business smart, which we told him and he quit offering it to us for a few weeks.  Just this week he started asking us again to purchase it, but still at the $150K.  He isn't listing it through an agent, just on his own.

I feel that we are a very desirable tenant.  We have been in this building for 11 years this month, never late on a rent payment, and have paid for every single improvement that has turned this building from an empty shell to a full-service restaurant.  This building is almost a hundred years old and was once an appliance repair building.  We have spent tens of thousands of dollars over the last 11 years to make this a restaurant and what it is today.  I don't think it would be hard to rent it out again if the new tenant was wanting to run a restaurant.  It is pretty much a turn-key situation, minus our equipment of course. We are the busiest and most popular restaurant in town.  

I am going to object to the 60-day clause, but this guy has the money and is stubborn enough to make us leave if we don't sign the new lease.  What is the normal language in a lease agreement for the owner selling the building while it is leased?

Thanks again for everyone's input.  It's nice to know that I am not the crazy one.