All Forum Posts by: Account Closed

First things first. Is it zoned for multi family.? Are there any deed restrictions?

I think the first question that you need to answer is: Do you want to be a landlord? Not just what pays the most. It's not for everyone, and without property management knowledge, it can end in a nightmare. 

During the boom, while researching land, I discovered that a large master planned community had been approved out in a rural area of Arizona. It would be self contained with homes, business, shops, golf courses, ect... So I purchased 160 acres next to the development with a six month close, and/or nominee, small earnest money deposit, and at least one out. My plan was to markup and sell 3/4 of the parcel and keep 40 acres for myself free and clear. After the development was complete, the value of this land would increase tremendously. 

I began to market the land, and immediately found a guy who wanted to buy it. But he wanted all of it, or none of it. If I accepted his offer, I would make a bigger pile of money than I had ever seen, and in just few weeks. But I was in love with my fantastic, next to the MPC, at the base of a mountain, elevated, saguaro and ocotillo studded, good water, access, power nearby, future cash cow land. So I turned him down. Soon after, cracks started to appear in the market, investors stopped buying land, prices plummeted, and the development was canceled. Fortunately, I exorcised an out, and was able to escape with my earnest deposit, but I left a small fortune behind. 

Lessons learned:

1. Don't fall in love with your real estate.

2. Sometimes it's best to grab the money that is on the table now, instead of speculating on larger future gains.

If the seller does a short-sale he should be aware of the consequences that can vary by State. His credit will be trashed, but not as badly as a foreclosure. He will be taxed on any amount forgiven as income. And he may be sued for the deficiency if the deal is not properly done. This is why a real estate attorney should handle the short-sale.

Try a local Real Estate Investors Association (REA). Just beware of the programs that the gurus sell. I'm not saying that they are all bad, just buyer beware, and talk with previous students. 

I'm not sure about the laws of your state for copies, but personally I have gone to using e-signatures for most of my real estate contracts. They are legally binding, and convenient for everyone. No more driving across town for a signature. The system logs the signors IP address, the time and date that they signed. If you really want bullet proof verification, the system can ask the signor questions from their credit record that only they would know. Another great thing is that it will not let them forget any initials or signatures. After signing, each party may print out a copy for their records. I use Docusign. Love e-sig's!

One more thing! I prefer a textured tile. It doesn't show scratches as much, and it reduces the chance of a slip and fall, especially when wet.

The best flooring probably differs depending on your location. I avoid laminate except maybe in the laundry room. It says "cheap" even though lately it cost me almost as much as a low cost tile.

Here in Phoenix I like tile. It's durable and easy to clean. If you want the look of wood but the durability of tile, they now make tile planks that look like wood, and some have varied casts, so each one looks a little different. I previewed a home for sale that had this wood tile. I thought it was hardwood until I stepped on it, and it didn't echo like wood. It took me a minute to figure out what it was.

Whatever material you choose, go with something that doesn't show dirt. Here in the desert I go with a reddish-brown tile that matches our dirt, and a darker grout. It can be completely filthy and you cannot tell until you clean the floor, and look at the mop water.

Also, keep an extra box of materials, and/or a small roll of carpet. Often a manufacturer will end a style or color, and you wont be able to find it in the future. I saved a roll of carpet from six years ago, and just made two cutouts and replacement of a couple bleach stains. You can't even tell where the repair was now.

I'm not sure what you mean by "wholesale financing". For owner financing you need to know how much equity they have. What is their situation, do they need the money now? How much will they carry? Will they wrap the loan? But be wary of Due on Sale from the lender. Determine each term's amount that is most advantageous to you (that you think that you can sell), and your limit, before the meeting. Generally, the less down, and the longer you can avoid paying money, the better. With a carryback I would try to include an exculpatory clause in the contract limiting liability.

I'm not an attorney, and this isn't legal advice. I would recommend that you seek the help of an attorney and/or real estate agent. I could be an idiot that doesn't know anything.

Joel,

It is a single family home.

You cannot legally prevent a satellite TV installation in a rental property where the tenant has exclusive use of an area. If a lease forbids the use of satellite TV, it is in violation of FCC law. I did find out that installers are not allowed to run new wire without the landlords permission though.

http://www.fcc.gov/guides/installing-consumer-owned-antennas-and-satellite-dishes

There is some case law:

http://petriestocking.com/blog/2012/08/08/landlord-sues-the-dish-network-for-the-costs-to-remove-satellite-dishes-from-his-rental-property-and-wins/

I found this helpful webpage:

http://free-landlord-help.winnfreenet.com/dish.php

BiggerPockets dosen't seem to like links to some websites, so you will have to cut and paste.