All Forum Posts by: Megan Phillips

I went to one that was associated with Rich Dad Poor Dad -- expecting some sort of sales pitch, but hoping for some useful information. Guess what I got, a sales pitch. They are simply going to try to get you to buy another program from them for hundreds of dollars. 

Don't bother going. Find a local REI club instead.

Hi All, 

Under contract for a duplex. During title search a few weeks back, the issue came up that the lister's office has the property as a single family, but the current owners are clearly using (and selling) the property as a duplex... The seller's agent didn't respond to the issue for a while - almost 2 weeks. I'm assuming they didn't think it was as big of an issue as it has turned out to be -- they also claimed to have paperwork that verified it was a duplex when it didn't (town tax assessment has it as a duplex, but that doesn't change the fact that it is a non-conforming duplex in a "commercial" zone, so not legal). Overall, I believe the seller/seller's agent truly didn't know this wasn't a legal duplex. It was bought by the current owner in a foreclosure, and apparently, never verified to be legal with the town.

At the moment, I told my realtor the seller's could have until the original closing date of Jan. 30th to figure it all out. They are currently hoping to find some sort of miracle record that shows the owner that turned the property into a duplex, did it more than 15 years ago and the property is grandfathered into being allowed. They've been at this for several days already, it seems like it simply isn't going to happen.

I've included the zoning map, with a red circled area showing where the property is - the strip of commercial zoning is almost humorous (if it wasn't causing the deal to fall through) because it's blatantly a residential area. If it was residential, it would be a non-issue. The town doesn't seem willing to provide a variance in this case either.

My attorney is aware that this may not all work out, and I'm going to get their opinion of what sort of money I can expect back for costs incurred or what sort of liability the realtor's office and seller have. Does anyone have a similar experience, if so, what did you expect back from the seller for costs --- I have done the inspection, appraisal, title search, LLC formation, $1,000 deposit, etc --- not sure how much if this was Real Estate Tuition, and how much I should try to get back from the seller.

@Joseph S.  I think it's in part to a lot of BP members hearing repeatedly "If you aren't embarrassed by your offer, you're offering too much." and they go "That's what I'll do!" 

Everyone wants to get a homerun deal, however, that simply doesn't apply to all markets. I offered full price for the duplex I'm buying without even looking at it first. A friend offered full price for another duplex in the same area, and they were rejected because of a competing offer. Both were on the market less than a week. Lowballing would've gotten us laughed at, and they would not have responded with a counter.

In your case - I wouldn't be upset by it, the offers are most likely coming from beginner investors, or like others have mentioned, investors that make several offers every week and aren't expecting them to all be accepted. If you know your market, and you did your numbers correctly, someone will buy it at a price that works for both parties.

Agree with zoning. I asked about the ability to add a unit to a property I was looking at, shot down because zoning didn't allow it. It was based on lot size for that particular example.

Talk to them about giving you a money order or bank check for the funds quickly, say within 48hrs. 

Still serve the notice as a precaution. In the future I would only let them use those forms of payment.

@Bryan Satter I don't have an answer for you - but I'd like to know what the answer is. I am planning on purchasing my first duplex under an LLC, but also planning to HELOC or refi later to use that money to invest in more properties... how do people do that if the bank won't refi to an LLC?

@Ben Granja  That's interesting, Liberty Mutual was almost $500 higher than two other quotes for me.

I already have a hard enough time walking out of Lowe's without something,  at least I can justify it now. I appreciate all of the input, thanks everyone! 

Are there current tenants already in place or will you have to find new ones? If you have a bit of a cash reserve and have conservative numbers (it seems like you do for the most part), I would go for it. When you finish repairs can you raise rents? There may be hiccups but if you have some funds set aside it should be okay. It's up to you and what you're comfortable with. If you buy but don't like the numbers in the future, would you be able to sell for more than you paid as another exit strategy?

Even if they clear out the apt and return the keys, they still broke the lease. As has been previously stated, I would add the additional early termination fee of $900, and also not return the deposit, as it should be used to pay for costs incurred during the re-rental process, and would definitely consult an attorney. Keep detailed records of any conversation via email, phone, or text as to when they occurred, what was said, etc. On the 20th, start the eviction process for both.

Does the fact that the property is illegal make a difference to the courts?