All Forum Posts by: Matt Shields

In addition to the lease, check your local laws. Some states have laws that apply to holdovers.

As always, seek professional advice.

If you are buying at non-foreclosure auctions beware of reserve or seller approved pricing. I have had clients purchase at these auctions thinking they would own the property with the winning bid only to have the auction company call and inform them that the reserve was not met or the seller didn't approve the price, then demand a higher price or their bid would be canceled. 

Trustee auctions are true auctions (at least here) but I don't recommend them for newbies. There is no practical way to get title insurance, so if you miss something you're in a bad place. Many auctions are canceled or postponed within the last couple of days, so you don't have much time to research them unless you want to do a whole lot of work for canceled properties. The interiors are usually not accessible so there is no way to know the condition let alone do any inspection. Unlike on TV, many of the homes purchased through a trustee sale are still occupied by sometimes very angry people that you will have to negotiate with or evict. 

I have bought many properties out of trustee auctions in Arizona over the past few years, but I have stopped recently because the HGTV and weekend seminar people have pushed up prices to a ridiculous level. I can purchase homes out of the MLS with title insurance and an inspection for the same that many people are paying at the auctions.

My advice. Get permits! I see so many room illegal additions/conversions where the homeowner spends a lot of money on the project, but when they sell the appraiser assigns it no value because the square footage is unpermitted. Also, make sure this conforms to the neighborhood, in some cases losing a garage and gaining livable space can cost value.

As always, seek professional advice.

I don't want to be a wet blanket, but below grade basements are often not counted in the livable square footage of a home, or valued the same. Check with your local assessor or appraiser.

Always arrange your lending first. You will know what your budget is and be ready to move fast. Good deals don't last.

As always, seek professional advice. Good luck!

 Sometimes my clients think I'm a headache because I pester them to do things, but it's only because I want them to make the most money and stay out of trouble. 

Yeah, but it only cost him $100! Strange how I almost never see wealthy home sellers going FSBO. They understand how to make money.

Many municipalities are under pressure from the hotel industry to ban AirBnB's and some HOA's don't like them. Just in case, make sure it will also work financially as a normal rental or have another exit.

As always, seek professional advice. Good luck.

 More like "conditions" and if a condition is not met the contract can is void or voidable. 

I'll cover the contract exists, and leave the investment exits typing to someone else. 

There are as many contract contingencies (exits) as you can dream up.  You could make a contract contingent on the Steelers winning the Superbowl, but I wouldn't count on it. Some often used contingency clauses: The buyer's financing falls through. The buyer must sell another property first. The property must appraise. Failure to assign the contract. A buyer can also cancel during the inspection period.

As always, seek professional advice. Good luck.