All Forum Posts by: Account Closed

@Kevin Sayers You don't need an agent to make offers. Offers can be made in person, over the phone, texts, emails etc.. but when you want to put everything in writing and make it binding you need a purchase and sale agreement. Get one from your lawyer (not the interwebs) and have them walk you through it line by line. Its generally going to have everything you need in it to make an offer. Once you and the seller sign it, shoot it over to your title company/attorney and off ya go! Good luck

@Troy Gravett Thats definitely what im leaning towards

@Jeff B. & @Greg H.  I guess that was my question (and for my lawyer tomorrow), is the lease even binding? How would you enforce a lease/evict a tenant who is not obligated to pay rent? 
 

Seller is out of state and inherited a property from seller's deceased father. Deceased father's girlfriend (tenant) has remained in the property rent free since the passing of the father over 1 year ago. Seller and tenant absolutely hate each other, but remaining family members have pressured seller into entering into an agreement to allow the tenant to remain in the property, rent free, until June 2017.

Seller is in a financial bind, can't afford to pay the taxes and wants to sell ASAP.

In previous situations where an occupant needed time to vacate, I paid seller half the purchase price at closing and left the other half in escrow until the occupant vacated the premises, obviously with the condition the property is left in similar condition before remaining funds were disbursed. But that was always for short term, occupant just needed time to move etc. I wouldn't mind doing so IF the tenant was actually paying rent and/or was leaving in the near term, but i don't want to deploy capital to sit for 4-5 months before i can get started on renovations. Just by the context of the conversation with the seller, i wouldn't be suprised if the tenant 1. doesn't leave on time and needs evicted and/or 2. trashes the house on the way out the door.

Quick Sale ARV: $90k
Repairs: Unknown. I'm viewing the house tomorrow. The seller says it's "livable".. but we all know what that could mean

Seller initially asked for $50k, i declined as it's 2 hours from me in a very rural location; however two months later the seller recontacted me and is now BEGGING for an offer.

Offer $25k cash and take the risk?
Offer Seller Financing with deferred payments?

What would YOU do?

@Account Closed If you don't intend on closing yourself, make sure to inform the seller that you intend to profit off of the sale of their home.

@Gavin Carlson You need to "train" your tenants. Set expectations upfront and follow through with them. Don't be "on-call", if they know that you'll always answer/respond right away, your phone will never stop ringing. I do everything i can to NOT talk to my tenants on the phone. I have a google voice number specifically for them. They call and leave a voicemail, i get the transcribed version in an email and if its an emergency i text them back with a solution. If it's BS, "the neighbors dog is barking", "the neighbor parked in my spot" etc etc i just don't respond..they eventually get the hint. 

@Brooks Everline If you're going to pay folks to do it, then definitely pay per sign. To quality control that and make sure your signs don't end up in a dumpster, give them clear instructions to take a picture on their phone of each sign they place. When they're finished, pay them according to the number of individual photos of signs that they show/send you. 

@Nick L.  I fortunately haven't had one called due, but as you stated with a seller already into the foreclosure process the loan is already on the lender's radar, why risk your capital, right?
I stopped bringing any cash into Sub2 deals when i realized that i was letting sellers take the drivers seat in the negotiations, as i suspect is the case above. In my first few, I was looking at it as the seller was doing ME a favor by letting me have their house.. when in reality I was doing THEM a favor by assuming responsibility for the problem THEY created.

@Daren H.

Thats a lot of cash to outlay on a loan that can get called due. I personally don't take Sub2 deals anymore unless the seller pays closing costs and brings 2-3 months worth of mortgage payments to the closing table. If they're willing to sell Sub2, they're generally out of other options (not enough equity to sell cash, not nice enough to sell retail etc)

If the seller is 6+ months behind on his mortgage I think you could get a better deal by bringing him back to reality and better explaining the seriousness of his situation. i.e. he's about to lose the house! "If you let it foreclose, you get nothing" ..and im sure the local HUD office would love to hear that he's collecting government subsidized housing payments while letting the house go into foreclosure.  

Just my 2 cents.

@William Brown It all depends on your local government. I've been using them consistently for two years and made quite a bit of money off them. Like any town in America, mine has a law on the books making them "illegal"; however, the only phone call i've ever received from the city was from a councilman who was looking for a house to flip.

Do you see other people in your area using them? If so, your city probably doesn't enforce. If you don't see ANY signs out, its a good sign that your city is actively picking them up and enforcing the code. 

@Chip Chronister Do you have a link to the bill / source of this?