All Forum Posts by: Mindy Jensen

So I was trolling the Forums and found this post where the original poster was asking about Title Seasoning. 

One response, from Bill G. said to rent it to the buyers prior to closing, then close on day 91. 

I remember my dad giving me some advice way back in the day, saying "Never give possession to the buyer before closing. They could start finding 'issues' with the property, and demand you repair perceived problems before they will close."

I love my dad, and he can be right about a lot of things. But Bill G. also gives good advice. Is my dad's thinking outdated?

@Jerry W. If you are technically unemployed, your insurance is pretty affordable. 

Here is an older but still relevant post about obtaining insurance, written by Mr. Money Mustache. His costs have gone up since he wrote this because it is 3 years old, but not that much because he is retired, therefore zero income.

Not sure what kind of plan you currently have. We used this service when my husband went from employed to self employed and our level of service went from crappy to crappy, so we are no worse off than before. Good luck!

@Brandon Low I bought the 1/8 of a point to bring my regular guy's loan to the same interest rate as the competitor. Even paying the extra upfront, I saved a ton on closing costs. 

I do see people paying for points, but not as frequently as in the past. I think in the 70s and 80s, buying points was fairly common. But that was also when interest rates were in the double digits.

I would recommend getting several quotes for your mortgage, and then comparing them side by side. Usually, a clear winner will emerge. And there is no shortage of places to get a mortgage. Try local banks, credit unions, and mortgage brokers. PM me for the name of my guy. I make nothing off any referrals, I just like to send him business for all the money he has saved me over the years.

@Joshua Cassino

@Account Closed is absolutely right. Sue, maybe we lived in the same building?

I bought my condo. 6 months into living in it, a "Special Assessment" was levied to replace the boiler. An extra 50% of the regular assessment. Payments lasted a year. Then the next year, another "Special Assessment" was levied to repair the pool. An extra 50% of the regular assessment. Payments lasted a year. The year after that, another "Special Assessment" was levied to fix the roof. An extra 50% of the regular assessment. Guess what happened the 4th year? Ding ding ding! Another "Special Assessment" for another 50% of the regular assessment that lasted another year. This was back when I was poor and couldn't afford to pay it all at once.

The second and last condo I bought, they levied a special assessment of $700 for tuckpointing that had to be paid before I could sell it. This was a long time ago, and $700 was still a lot.

Absolutely keep shopping around. I have a guy that I have used for my last 7 purchases. I cannot find anyone to beat his rates, but I still look, even after 7 successful closings with him. You never know when you will find a better deal. Why pay more than you have to?

But don't just look at the rates, look at their closing costs as well. On my last deal, I actually found someone 1/8 of a point less, but closing costs were triple! We bought 1/8 point to even them up and saved a ton of money on the closing costs. 

Driving for Dollars. I actually walk the neighborhood I am interested in. I make a note of properties that look like they fit what I am looking for, then check them out in the public records to see when they last sold. Houses that haven't sold in a while get a letter. The market I live in is really really hot, so I offer to pay their closing costs and ask them to contact me if they are interested in selling. 

I am currently negotiating a 4-plex solely because I wrote the owner a letter.

@Damian Hill

I second what @Paul Timmins said. 

Getting your real estate license for $200 seems awfully inexpensive to me. That may be the cost of the course, but that surely won't include the state and national tests, the background check, MLS access, membership in any of the Realtor's Associations, etc.

I wrote a post for the BP Blog about the costs associated with getting your license. While these were my costs in Colorado, I can't imagine California would be much different. Make sure you have a plan for that license before you drop the cash to get it. Good luck!

There are a number of different options when looking for an employing broker, which is what we call them in Colorado.

The full service agencies offer up a lot of training/continuing education after you get your license. But you pay for this with pretty heft commission splits - think 50% or more.

There are a la carte agencies as well, where they charge a flat fee per transaction, then a minor desk fee. At my agency, it is $500 per transaction and $52 a month. I work under a brilliant agent who has been in the business since God was a boy. With less commission paid out, it seems the other agents are nicer and more helpful.

Good luck!

@Zach Mitchell There is a lot of good advice given on this thread. Experience from each person ranges, but there isn't one person responding that they think this is a good deal.

If you go through with this, you will wish you had taken all the advice telling you to pass on this deal. Yes, it is too good to be true. If something seems to good to be true, it is. This rule holds true approximately 112% of the time. Always.

That said, if you jump in with both feet, I hope everyone single one of us is wrong. But we aren't. I hate to be negative, but these deals just don't work out.

 @Jim Wilcox. It always seems like a waste of money to pay attorney fees, I am certainly no fan of them. But in a case like this, where they have paid the entire month's rent, yet have left with no contact to you, you may both feel like you are right. They probably didn't read the whole contract/lease because most people don't. 

Unless an attorney drafted that clause for you, you may not have a leg to stand on in court if it comes to that. I don't live or invest in Kentucky, so I am not familiar with their laws. 

But to answer the original question, you have to check with your jurisdiction's landlord laws. Some states require property over $XX to be held for a certain amount of time.

I would also do research into abandoned vehicles in your area. You want to be sure you do everything legally so you aren't on the hook for replacing a truck. An eviction attorney would probably know the answer to abandoned vehicles as well. They seem to go hand in hand.