All Forum Posts by: Marc Winter

If you buy the foreclosure of a junior lien (ex HOA fees or 2nd mortgage), then a senior lien (ex 1st mortgage/note) will survive the foreclosure, and still be attached to the property.

Yes, I'm sure the lender would love for you to pay it off.  Make sure you get a "satisfaction of mortgage" and RECORD IT!  Once the title is clear of those pesky old liens, you'll be good to go.

This is not legal advice, so speak with your attorney for actual procedural issues.

Keep investing and moving forward!

Folks don't go broke by taking a profit.  Sell now and pay the taxes; our government needs the $$$ to give to those in more 'need'. 

Or be patient, wait until the 2-year window has opened for you, and see what's up next year.  

Good problem to have!

I've never heard of a rodent eating a lease.  ; )

To answer the real question, if it's a single-family property, then the tenant is responsible, and it will be so stated in the lease.  

If/when we found an infestation of pests in a single-family rental, and the tenant wouldn't or couldn't dispatch those critters, we would have a professional exterminator treat the problem and backcharge the tenant.  That would be covered in the lease.

What I call multi-family (2 or more attached units) the responsibility for pest control is on the owner.  Some tenants in multi-family units would just deny they caused it and point fingers at other tenants. And the District Justice would agree.

Keep investing and moving forward.

Let's look at two actions that can help reduce any potential liability:

1.  Hire a professional, certified arborist to examine the tree and the tenant-offending limbs and get a written evaluation.  Follow the guidelines, if any, for actions suggested by the arborist. CYA.

2.  Don't renew the lease.  To me, it's either do or don't do-- but don't threaten.  Tenants who threaten legal/court action when they don't get their way are not tenants I want.  Another tact:  suggest that if they do not feel safe in the property, they may move.

Keep investing and moving forward.

When it comes to contractors, or any service for that matter, it pays to remember the following:

There are three kinds of service--you can pick any two:

GOOD - CHEAP - FAST

1.  GOOD service CHEAP won't be FAST

2.  GOOD service FAST won't be CHEAP

3.  FAST service CHEAP won't be GOOD

Keep investing and moving forward!

@Sam Shueh is correct.  Unless you are a licensed real estate agent or broker, it is not legal for you to participate in any real estate commission.  As well, It would not be legal for your agent to pay you a commission.

They will be wearing two hats in your proposed transaction; one as a passive investor sharing equally in the expenses and profits, and the second, as your real estate agent.  Don't cross those roles with each other.

Keep investing and moving forward!

The points you covered in this post are spot on.  If there is no complete disclosure to the seller of the risks involved, a disaster is just waiting to happen.  That said, we have seen the following work:

An attorney prepares a land trust (intervivos revocable trust) for the subject property and after the deed into trust is recorded, the trustee (the seller) will quit their trustee position, and the beneficiaries (usually the seller) name a new trustee (the buyer) and transfer their beneficial interest to the buyer.

By using the trust, one legally avoids the due-on-sale clause. 

A major point to this scenario:  the attorney prepares a document explaining the transaction and risks involved in detail and has the seller sign, and notarize the document. 

That document is no guarantee that things won't go sideways, however, it should help prevent backlash if/when they do.

I'm not advocating this practice but among experienced investors and sophisticated sellers, we have seen it work.  I am not an attorney so do not take this as legal advice.

That's a great background for acquisitions!  Find the deals, negotiate, and make your money on the 'buy'.  You've got those skills in place. 

I'd suggest you continue on that path and grow your profitable doors until you gain other skills/knowledge in construction and rehab. 

Then, if you want to get into flips in the future, you'll be locked and loaded.

I find wholesaling a rather dark practice and of questionable ethics, mainly because most wholesalers don't properly disclose what they are in fact, doing. 

Continue doing those things that make you happy, and let you get a good sleep.  Have fun!

What are your areas of expertise?  Do you have  background in construction, marketing, sales or financial negotiations?

Usually, 20 to 30 units is the tipping point for self-management, so you might want to keep expanding your doors until you feel the benefits of that cash flow (as well as the pain of the management).  

By that point, you will have been able to narrow down the world of opportunities in real estate.  Go towards your strength and passion.

Good luck.  Keep investing and moving forward.

That sounds right--if you don't report it and pay taxes on it, then in the bank's eyes it doesn't count.