All Forum Posts by: Michael Lauther

The insurance company priced out repairs based on their data base of licensed and insured contractors. If you are handy you could possibly do it for less but if the damage exceeded the coverage the insurance estimate could be too low. In my case the insurance company did not put much effort to establish repair cost once they were on the hook for the policy limit.

Every time I have done this it has ended badly. on the other hand, In my experience, Crime is a factor in these areas and you need to weigh dealing with late and missed rent payments vs. vacancy and risking loss of copper wire and plumbing. Every property I have purchased required plumbing and wire replaced and was sold by a landlord who just gave up.

@Omi C.

I went to spotcrime.com and sighed up for alerts in my zip code.It is free for this level of service. tells me within 2 miles of an address.

@Rick H. Thanks for that strategy. It makes sense this may allow us to be able to get cash to those who need sooner than later by selling the first position note. .

@Bill Gulley

thanks for your usual thorough response. this allows me to present options to all concerned.

I get reports by zip code for spot crime. Is hard to quantify but it does give you daily and weekly reports on crime within a certain radius of your target property.

Forgot to mention, this is a New York State property. I read several posts from @Bill Gulley regarding safe act and balloons. the objective is to allow the 4th sibling to remain in the home and have a reasonable chance of refinancing out of a note to pay off siblings or to sell a note structured properly so an investor would consider it.

Five years seems to be the longest time siblings want to wait for their money. Only other option is to sell now and split proceeds. That is cleanest and most practical but hard to accomplish.

thanks for any insight. still dealing with this 7 months later.

We are trying to settle an estate: 3 siblings want to hold a note for a 4th .

Property is appraised at $360,000

3 siblings will hold a 270,000 5% interest only note with a 5 year 270k balloon.

Taxes on this property are now $,8,000 and insurance is $2400.

We will escrow taxes and ins.

Questions:

What are the issues if any re the note we propose?

Is there a 3rd party that could be paid to administer and if so cost?

Are there legal issues?

would a note like this be marketable and if not is there a solution that could be marketable?

What income and credit score would be necessary to re finance out of this note in 5 years.?

@Harry Campbell

@Harry Campbell I'd disagree that you need to attend to every investment. I come from an investment background and there are extremely cheap (ER's in .2% or less range) target date retirement funds that you can invest your money in and you will outperform a majority of financial advisors. That is a fact supported by countless studies"

Harry I would say the research you just quoted would qualify for attending to investments. Every investment needs to be understood and there is always a trade off between risk and reward. I appreciate that you are experienced and can recommend stock or bond investments but I would suggest that those investing with you should have done their due diligence regarding your qualifications as well as understand the investment's you are recommending.

Understanding what to recommend when it comes to real estate is not so different than recommending financial instruments. It all starts with the clients goals, risk tolerance, and time frame. Once you know this the area in real estate to consider will be clearer.

The past 7 years should have taught us that we need to understand and actively attend to any investment. Real estate, stocks, mutual funds, notes all have risks that need to be managed. There are very few places if any to invest your money with no risk. The key is to acknowledge the risk and reward and evaluate it based on our own tolerance and ability.