All Forum Posts by: Michael Finkelshteyn

McKenzie,

I frequently attend the meetings and events put on by the RICH club. It has been very helpful with my education and networking.

There is also the Wealth Club, Lifestyles and Prosperity Club.

Take a look and see which ones you like the most. They typically have a free workshop for beginner investors about once or twice a month.

Thank you all for the replies, and the form @Lyall Storandt. The seller will be sending an addendum and we'll be extending the close date to the end of the month.

@Sam Craven , Title is open with Texas American Title Company. The lien is a pavement lien that was issued by City of Houston in 1971. The lien is technically no longer a City of Houston Lien, it was levied and sold by the city for paving of several streets, one of which is the property in question. It appears that it was sold to the contractors who were doing the paving, and now the title company is having a hard time tracking them down.

@Joe Gore my EM is with the seller. I have it in contract and in other forms of writing that the EM will be returned if title cannot be cleared. I understand the concern here, and its a risky move, however the seller has a good reputation. I won't be putting down EM in this manner in the future.

Joe,

I did not do a title search. However, the contract is contingent upon clear title, so that is my exit clause.

I did not put money into escrow.

So, about 3 weeks ago I put $2500 earnest down on a duplex as a rental from a well established wholesaling entity in Houston. The property will be acquired in cash so I have no interest to pay.

The wholesaler is assigning the contract to me which has already been signed. Closing date is 9/14, which has already been pushed back once because seller has had difficulty clearing title. Apparently, the city has had a lien in place since 1978.

So with the closing date looming, what is my next course of action? I like this deal; the numbers make sense and I think there is a lot of upside. I break even on the lowest ARV price and I still make money with the lowest rent figures.

Obviously the deal will terminate if title doesn't clear, but if I still want the deal, do I sign a new contract?

Would I have to pay any of the taxes that have accrued over time (never mentioned in contract)?

Are there any "gotchas" in a situation like this?

I appreciate any feedback.

To piggyback off this thread. I found a quadplex that I am interested in acquiring. All units are 1 bedroom units, however they all have window units.

I would like to replace the window units with central heating/cooling, what does something like this entail? City permits? Structural modifications? What are the costs?

Sam Craven how big are these multi-families that you're targeting? I've been looking for quadplexes, but there is nothing good on the MLS so I am looking for wholesalers that can find some for me.

Welcome Diego A., I am new myself to the REI community and like yourself, I am considering multi-families in the BCS area and in Houston. I am partnered up with two other guys and we have found a 4-plex, however its has Section 8 tenants, so we're currently working on getting all the necessary information to see if Section 8 is something we want to do. It might not be the best start for a bunch of newbs like ourselves, but its a pretty profitable property.

Sam Craven, its good to hear that you're expanding, I'd be interested to see what kind of deals you'll get in the area.

Regards,

Hey Sam Craven, why are you strongly insisting on avoiding Zeus Mortgage? Is this strictly for HML or conventional mortgages as well?

No, I don't anticipate to. The electric meters were all split up for each unit so the tenants will take care of that. I couldn't really find any info on who pays the garbage/sewer/water bills, but I am making the assumption that I will, which is covered by the Miscellaneous expense.