All Forum Posts by: Mike Sedlacek

FHA does not do 2nd liens.

Here is what you do. When you put your contract to purchase these properties add this clause to the contract for closing costs. " Seller to pay Buyer 3% to be used towards Buyer's closing costs, prepaids, selling firm fees or any other use at Buyer's sole discretion, as allowed by law.

I have known contractors will price a job high for 2 reasons. One, they have plenty of work but if the customer is willing to pay above norm, the contractor will find a way to fit them in. Or two, they don't want the job and priced without spending time actually figuring out the quote, off the cuff.

Facebook market. Yelp. Your local real estate investors group, www.hardmoneyloan.com , 
https://privatelenderlink.com/...

Yes the 84 months which is also the length of your lease period.

Oh and yes. If you decide not to purchase the property after the seven year period you forfeit the purchase agreement deposit and you will need to vacate the property. However, a new agreement can be negotiated. 

Okay so I am assuming that you are the tenant over the next 7 years and at the end of that period you have the option to purchase the property. If that is so then you have two separate agreements. One contract for the 7 year rental and a second one is the option to purchase agreement. However, in the purchase contract a statement can be included that says the tenant can exercise the right to purchase anytime during the 7 year period.

In the rental contract you would have this TERM: The term of the Lease/Option shall be for a period of 84 months commencing on ___ and ending on ___. And of course other terms will be stated here.

ON the option to purchase TERMS: The Tenant/Buyer, as part of the consideration herein, is thereby granted the exclusive right, option and privilege of purchasing this property at any time during the term of this Lease/Option agreement. The  Tenant/Buyer agrees to pay for the said property the sum of ____ less any sums for which the Tenant/Buyer is entitled to claim reimbursement; The net sum to be paid in cash, certified check or cashier check at closing. And of course a whole lot of other terms such as none refundable deposit for the option to purchase and a stated purchase price. Since the length of this option is over 7 years and there may be maintenance and upgrades during this period that will all have to be spelled out in the agreement.

Does any of this help you for what you are looking for? I'm not an attorney so I would suggest consulting with one.

Ownership reverts back to the landlord with full rights and the leasehold estate no longer exists. Tenants must vacate the premises otherwise they are trespassing. If the tenant does not vacate then they are considered a holdover tenant and subject to court action brought on by the landlord such as a eviction notice. However once the lease has expired if the landlord continues to accept rental payments then a month to month tenancy is created. Then the landlord can terminate this by giving a 30 day notice to vacate. 

Appurtenance is described as property rights or items that are permanent and are passed along with the sale of the property. Could be the building, a shed, an in-ground swimming pool. SO tell me what is the appurtenance in this case? The statement in your question says,"Landlord leases to tenant - for a period of ___ months." Including appurtenances.
These terms have to be defined so both the buyer and seller know what is included in the sale or in this case the lessee and lessor, leased property.

If you like college towns then Binghamton and Cortland are  great area for college student rentals. However you may have empty units in summer unless you watch who you rent to. I have invested in apartment buildings throughout Binghamton for the past 40 years. Rented to both students and social service recipients. Do some research. If you need a real estate agent referral I know of several well qualified high producers in those areas that can help locate good investments. Check out HUD foreclosures in those area. I once bought a $10,000 SFH at auction and rehab and sold for $85,000 in Binghamton with $40,000 profit. Many opportunities like that there.