All Forum Posts by: Ken M.
Ken M. has started 141 posts and replied 1723 times.
Post: Not COVERED - TITLE Insurance issue- THOUGHTS appreciated to remedy
#2 Buying & Selling Real Estate ContributorPosted - Investor
- Scottsdale, AZ Austin TX
- Posts 1,773
- Votes 1,010
Quote from @Tom Gimer:
Quote from @Ken M.:
Quote from @Michael Morrongiello:
Ken
Few Attorneys will be willing to take on a Title Company and their army of litigators.
The insurance willingly PAID on that claim.
Trying to think outside the box here
Fidelity flew in people from all up and down the coast for trial.
I won.
There is no way to win this, unless there is a lawsuit.
Litigating with a title insurer that has disclaimed coverage? Sure...
But litigating with a title insurer that has already paid policy limits? What is the point, there is nothing to win.
@Tom Gimer: I agree with you. A bit of sarcasm there. "There is no way to win this, unless there is a lawsuit."
My case revolved around my using Subject To to buy a pre-foreclosure that was willingly sold, and years later a pro bono attempt on the other side to undo it and claim the unearned accumulated appreciation based on . . . ?????? . . . that the seller was stupid?. They claimed the deed was defective.
Anyway, my point is that if you are crazy enough to sue a title company, or be sued by one, be prepared to pay big bucks and plan to spend the time. It had better be worth it. In my case they wanted $2,000,000 to settle. Settle, my foot! He willingly sold the property!!
It was a "shake down". It got dismissed 3 times and appealed twice. Absurdity at it's best.
My personal opinion is that theory of the legal process and the actual application of the process are two entirely different things. Been there, done that, I know the difference. Don't go out of your way to learn the difference. Be content to know how to avoid it and when to walk. ;-)
I post this because, what I did that got the lawsuit started is exactly what is being taught by Pace Morby and the SubTo group, per his posted videos on Youtube. That's how I know to stay away for one thing and to not underestimate how susceptible to future lawsuits his teachings are.
Post: Not COVERED - TITLE Insurance issue- THOUGHTS appreciated to remedy
#2 Buying & Selling Real Estate ContributorPosted - Investor
- Scottsdale, AZ Austin TX
- Posts 1,773
- Votes 1,010
Quote from @Michael Morrongiello:
Ken
Few Attorneys will be willing to take on a Title Company and their army of litigators.
The insurance willingly PAID on that claim.
Trying to think outside the box here
Fidelity flew in people from all up and down the coast for trial.
I won.
There is no way to win this, unless there is a lawsuit.
Post: Not COVERED - TITLE Insurance issue- THOUGHTS appreciated to remedy
#2 Buying & Selling Real Estate ContributorPosted - Investor
- Scottsdale, AZ Austin TX
- Posts 1,773
- Votes 1,010
Quote from @Michael Morrongiello:
A friend bought a land lot in an area where this is a HOA - Home Owners Association for $100K from a land Flipper and DID obtained an OWNERS TITLE insurance policy. The HOA Dues were in arrears for the lot as they were not being paid.
He then started construction on a new home on the lot and has invested about $200K+ into the lot in the way of improvements.
He received a call and correspondence from an individual who RIGHTFULLY claimed they had their title to the SAME land lot stolen from them by the land Flipper (who apparently fraudulently forged signatures transferring the land to them) and THEN SOLD it our friend.
Our friend file a claim with the TITLE Insurer who provided the OWNERS TITLE INSURANCE Policy to them for the $100K
purchase of the land lot. The Title Insurer has agreed to PAY HIM back the $100K that was for the purchase of the land lot BUT
they WILL NOT pay anything more (ignoring the improvements made to the lot). TAKE NOTE HERE !!! - ALL the Title Insurer will pay back to our friend is their purchase price for the Lot.
The RIGHTFUL owner (who will get back his lot- now IMPROVED and valued > $300K+) is also now unwilling to sell the lot to him.
Thus He will LOSE this land lot and also now the $200K of additional improvements made to the land lot.
Any suggestions or courses of action or recourse that our friend might or could take to somehow RE-Obtain the land lot (now improved) ???
Eg. Can he possibly pay some of the HOA Dues and then bring an action against the ACTUAL legal owner of the lot in an attempt to FORCE them to SELL the lot to them?
Other thoughts....
Michael Morrongiello - Sunvest
But I suspect you already know the answer.
This one requires a real estate attorney to sort out.
Post: Do I need to wait 2 years to buy property? Advice appreciated
#2 Buying & Selling Real Estate ContributorPosted - Investor
- Scottsdale, AZ Austin TX
- Posts 1,773
- Votes 1,010
Quote from @Rai Ud:
I'm looking to purchase a single-family home and rent out one or two rooms to help offset the mortgage. Shortly after reaching out to a mortgage broker, I remembered that I have a two-year gap in my employment/income history, and my current job is contract-based.
Ideally, I'd like to buy now rather than continue renting. I'm aiming for an FHA loan with a low down payment. I have the funds for the down payment, a few months' worth of emergency savings, a good credit score, and no existing debt. However, I'm concerned that the recent employment gap, combined with the instability of contract work, might make it difficult to qualify for a loan.
I reached out to the broker with these concerns but haven’t heard back, so I’m turning to BiggerPockets for advice.
What’s the best path forward?
Should I wait until I have a full two years of consistent income history, or is there a way I might still qualify for a favorable loan given my current circumstances?
.
Lenders fall into basically 5 groups
1. Traditional lenders like banks (hardest to please)
2. Credit Unions (More flexible)
3. Mortgage brokers (Largest number of options)
3. Hard Money Lenders (Will do things other lender won't, but they usually cost more)
4. Private lenders (whatever you work out with them)
The third one, mortgage brokers, have access to over 300 mortgage companies, who each have a large number of options, depending on goals and other qualifying criteria.
Talk to a mortgage broker to see what they offer.
Post: Pre-Foreclosure, Distressed, Creative Fiancing
#2 Buying & Selling Real Estate ContributorPosted - Investor
- Scottsdale, AZ Austin TX
- Posts 1,773
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Quote from @Max Engel:
@Ken M. Yes I am not trying to scam people.
I get that. I didn't mean to imply that you were.
The point is that there are some seemingly innocent activities that will also get you a visit from the investigators. It's not your fault that you don't know that, but wise men look to see what others are doing, even if it seems innocuous enough.
There are very specific laws regarding targeting foreclosures and bankruptcies especially in California, Oregon & Washington and a few other states. It's a criminal act in Washington. This for the lurkers.
Post: Avoiding inheritance tax
#2 Buying & Selling Real Estate ContributorPosted - Investor
- Scottsdale, AZ Austin TX
- Posts 1,773
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Quote from @Cyndi Lees:
I did not receive ownership until the death of both my parents.
.
Your comment: "I did not receive ownership until the death of both my parents."
Quitclaim Deeds and Other Arizona Deeds Used in Estate Planning
https://www.deedclaim.com/arizona/quitclaim-deed-form/
You probably have a "Life Estate Deed" then which has the effect as stated
"Example: Peter creates a life estate deed transferring his property to himself, as life tenant, with the remainder to Paul and Mary. The effect of this deed is to retain a life estate for Peter as life tenant. At Peter’s death, the remainder interest will automatically transfer to Paul and Mary."
Since you mention the property is in Arizona, I would think Arizona law prevails.
Also, a deed becomes effective in Arizona when signed and properly notarized, not simply as a result of being recorded
Post: Avoiding inheritance tax
#2 Buying & Selling Real Estate ContributorPosted - Investor
- Scottsdale, AZ Austin TX
- Posts 1,773
- Votes 1,010
Quote from @Cyndi Lees:
I inherited a property in Arizona when my mom passed away last October and I'm finally getting around to figuring out what to do with it. I received the property through a guarantee deed (quick claim) that my parents filed in 2006.
I own my own home in California and I'm still paying a mortgage. If I sell the home in Arizona I can pay off my mortgage and have some left for retirement. I'm 67 years old and I barely make it on SS.
The house in Arizona is paid off so I could rent it out and it would be cash flowing. I'm trying to figure out how much I will owe in taxes if I sell it now or if I sell it after it's been a rental. Will it make a difference? I'm really emotionally attached to the house in Arizona so I'm leaning towards renting it out until I work through the grief however, I need to avoid paying a huge amount of inheritance tax. Any advice would be appreciated and I also could use a referral to a tax professional.
Thank you so much!
@Cyndi Lees: None of these people will represent you in court, so it's highly advisable that you get a local, legal opinion for your question. ;-)
Post: Avoiding inheritance tax
#2 Buying & Selling Real Estate ContributorPosted - Investor
- Scottsdale, AZ Austin TX
- Posts 1,773
- Votes 1,010
Quote from @Cyndi Lees:
So I am better off renting it out?
You are asking questions only a financial planner can answer with an in person interview. There is so much missing information about goals, income, assets, taxes, siblings and on and on.
So, none of us here can answer what is best for you and your situation.
Also, it's hard to take someone living in Santa Barbara seriously that they can't afford or find the appropriate guidance locally instead of from random people on the internet. ;-)
Post: Avoiding inheritance tax
#2 Buying & Selling Real Estate ContributorPosted - Investor
- Scottsdale, AZ Austin TX
- Posts 1,773
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Quote from @Henry T.:
Quote from @Ken M.:
Quote from @Henry T.:
If you sell it you'll owe capital gains on whatever it has appreciated in value from the time your parents bought it. Inheritance has nothing to do wtih this since they deeded it to you in 2006. If they didn't quit claim, and you inherited it, you would owe no tax because of the step-up basis. But they did quit claim and now you owe if you decide sell. 15, 20, or 23.8 percent depending on your income.
Look up Capital Gains on Life Estate Property
"The remainderman receives an adjustment (step-up) in basis to the amount the property is worth on the date of the life tenant's death."
That's correct, and that is what I said. She said the property was filed and deeded to her in 2006. Therefore, inheritance doesn't apply here. She didn't inherit the property, it was given to her before their death.
A life estate has to be pre-recorded (before the grantor dies), it's too late afterwards, but we'll go with whatever you want. ;-)
Post: Pre-Foreclosure, Distressed, Creative Fiancing
#2 Buying & Selling Real Estate ContributorPosted - Investor
- Scottsdale, AZ Austin TX
- Posts 1,773
- Votes 1,010
Quote from @Max Engel:
Does anyone have any advice for the current top strategies on finding these types of deals and properties off market? I've been doing a lot of doorknocking and it almost feels like a cold call talking to people through their ring camera. Is there a better strategy out there now than door knocking or is this just the growing pains?
https://www.azag.gov/sites/default/files/2025-03/CV2025-0084...