All Forum Posts by: Marc Winter

@Jordan Brooks, you do understand that arbitrage, like leverage, is a two-edged sword?  It all works great in theory, but remember, you are on the hook whether you rent as a profitable air BnB or it stays vacant and you have no income.  

Another lockdown, anyone?

@Jim Cichello, you will be kissing a lot of frogs to find your 'prince'--the broker that folds under negotiating pressure from you won't hold up too well with other brokers.

So just go to a 'flat-fee' brokerage, get it listed, and do it basically yourself.  You'll lose time and money, but hey, at least you don't have the dilemma your post outlines. 

If that sounds snarky, well, it is.  Remember this:  a selling broker has very little to do--if a buyer likes a property, they will buy it if the broker will just get out of their way.  They are selling a product.

A listing broker is selling a service, an intangible.  In my experience, that's a much tougher sell.  An experienced and top-performing listing broker has a reputation among other agents in their market.  That often translates into a higher price and smoother transaction for everyone involved.

But that's just my personal experience after 40 years in this wonderful business.

Good luck to you whichever way you decide to go.

A pre-signed quitclaim deed could be considered a 'confession of judgment' and might not hold up in court if it came to that. (I know, that could NEVER happen, right?)

I would take title in an Inter-Vivos (living) revocable trust and all three of you are beneficiaries.  You can decide what to do in the event of Dad's passing and have that written into the beneficiary agreement.  

Instead of a quitclaim, you could also have a transfer of beneficial interest (also written into the beneficiary agreement to Dad) in the event you can't / won't make the payments he is so concerned about.

Disclaimer:  I am a licensed real estate broker, not an attorney.  I'm not providing legal advice--the info above I learned in doing a few dozen of my own purchases using trust--my personal experience only.  Your results may differ.  

For this type of situation, I hire licensed people:  roofer, electrician, plumber, hvac, mason, and if you really want to cover your asset, an engineer.  Then you will know from contractors who actually do that work what problems you might/will face, as well as getting estimates for the work.

Good luck.

PS:  Check with building/zoning/licensing/permits in the municipality the subject property is situated.

As long as you, the buyer, have title insurance, and the lender-seller is not requesting a policy, let it be.  The title policy will insure against any claim on the title that appears after closing, exceptions not included.

Example:  one day a little old lady comes to your door and asks 'what are you doing in my house?'  That becomes a court action, and the title company SHOULD cover the costs to make it right, up to the limits of your policy.  Always go for a 'market-value' rider.

@Nick Naik,

Yes, you can.  The purpose of a non-occupying co-signer is for them to be responsible for the rent if the occupying tenant is not complying with the rent payments (or any lease infraction).

Make sure you understand the term 'jointly and severally' and put it into your lease agreement.

Read over the Sec 8 lease provided by the housing authority in that location.  

Also, search online for minimum health/safety/physical requirements of the property/unit.  Make sure those items are up to code and you'll have no problem with the Sec 8 inspections.

In my experience, the owner or manager should inspect the unit AT LEAST 2x/year--Sec 8 or not.

Good luck, Mr. Landlord!

Can you sub-divide along the zoning lines?  Or perhaps get the entire property rezoned.

Don't do it.  

A few reasons:  if you do not have proper egress, you as owner will be liable in event of tragedy. 

You will need to make sure your insurance on the property is for 3 units--you'll pay for the extra premium, however when something happens, very doubtful that the insurance company will cover your loss.

Depending on the politics in the City, they MAY end up condemning part or ALL of the property until it is brought up to current code--IF they will allow the legalization of the basement.

If the 10-year tenant decides to act up and stops paying, how would you evict from an illegal apt?  You might be liable for ALL the rent they ever paid.  (Sounds nuts, I know, but remember, you'll be dealing with Seattle courts!) 

I would walk away from this deal.  

For the first time, speak with your local title company or real estate attorney.