All Forum Posts by: Marc Winter

@Mario B., doubt that Bitcoin will be an acceptable replacement property for a 1031.  

Why not look at this another way:  calculate your capital gains tax so you know your worst-case situation if you sold the property. 

Figure a HELOC or refi for no more than 70% LTV. Assume 7% interest. Then invest your loan proceeds into BTC. As long as BTC returns >7% /year, you'll be fine. Otherwise, raising rents should offset. Best of both worlds!

BTW, I've been in real estate all my life, and love it.  However, after studying (and buying) BTC for several years, I've learned my one heart can have several loves.

Keep investing and moving forward!  

@James McGovern, you may not be alone, but the statistics show you are in the minority.

Greater buyer engagement, faster sales, and higher offers are all shown to be greater for staged homes for sale over non-staged.  (Grok it for yourself.)

Now you know the statistics; it's your choice.  Good luck!

Electricity demand is much greater now than it was over 50 years ago.  Update/upgrade the panel, and bring the system up to code; proper outlets with grounds, gfci where needed, etc.

Have an electrician check every switch and outlet in the house.  

Have the work done by licensed electrician, with permits, and get the work inspected and approved.  

Sleep easy.

Short answer: Yes, it does make sense.  Caveat: only take out the funds you know for sure you can repay.  

Check your documentation on the HELOC you are using. Often, if you are late on one or more payments during a x-month period, your access to additional funds will be frozen, the interest rate may increase, and your credit will certainly be dinged.

Or another method--you might try knocking their door and introducing yourself. "The owner said ok to see outside", and out of courtesy, you just wanted to let them know you'll be looking around.

Meet them like that and you'll have a better idea of what they are really like.  Smile!

Make sure you have all the info you shared in the post documented in writing.  Names, numbers, etc. 

Then: lawyer up.

From your description, it sounds like the title company and seller are going to have some 'splainin' to do.

Human nature:  "Don't care what you did before.  What have you done for me lately?"

Your situation is exactly why it is important to have small to moderate rent increases on a regular, annual basis.  

Remember the story about cooking a frog--raising the heat in the pot slowly so the frog doesn't realize it's getting cooked until it's too late?  

Don't be the frog.

Trust but verify.  

The issues here are no ground rules in writing, no structure, no time benchmarks of progress, no weekly photos, no real oversight from you, the investor, and being far too patient with the con-tractor.

Other than that, it's a sweet deal.  

@Sylvia Castellanos

Your post is timely:  we are currently negotiating through a similar sale.  In PA, we call the land bank a "Tax Repository".  Property with past-due tax is auctioned off.  Those parcels that do not sell at the auction are placed into the Repository.

Title companies in PA don't underwrite insurance for lots purchased from Repository and being resold within 365 days of the date of purchase from the Repository.

We have found that closing this transaction is available through a closing organization or attorney. They will require an extensive waiver signed by the new purchaser, as well as a detailed title/abstract report for the buyer's review. 

These are all cash sales, so no mortgagee title insurance policy is needed.

The alternative:  in PA, to satisfy title insurance requirements, the seller must hold the property 365 days before selling again.

Hope this helps!

Has MIA removed all their personal property/possessions from the subject unit?  Has their mail been forwarded?  Do you have emergency contacts listed on your application and/or lease agreement?

One approach to this issue is to send a certified, return receipt letter to each individual tenant stating your terms: MIA needs to sign off on abandoning their portion of the agreement, etc.   

When the letter to MIA is returned as undeliverable, do not open it, keep it in your file for evidence in the event of court.  

Future reference: if it takes 3 unrelated persons to pay rent and security, and/or if these tenants are students or otherwise just starting out, having them jointly and severally responsible is just the start: get the parents/guardians or some other 'established' and related adult to co-sign the lease.

This info is based on my personal experience.  I am not an attorney, and this is not legal advice.  Speak with your legal professional.