All Forum Posts by: Esaul Viramontes

we're looking at a property that meets our buy & hold criteria (cash flow, COCR, etc), except for one thing. According to crimereports.com, a registered sex offender is the current rental resident in this investment property. Would you continue to pursue this property? Why or why not>

Have you checked out the lease? If it were me I would probably be looking to terminate his lease ASAP and be looking for all my legal outs....and maybe your only out would be once the contract ended??? I personally would not want this person ESPECIALLY if it were a MULTI family units as that could deter possible great tenants down the road....

Not to me. Definitely no if a Land Contract. Paying 1% of rent per month is not great.  50% down is a ton.  6% is 50% above market rates with that much down.  Is this an appreciation play or is there something special about this particular house?  I'm not much for speculation, so I would pass unless the down payment can be reduced to more like 10-15% AND it's not on a land contract. 

Diggin' the signature @Esaul Viramontes!

HOA? CAP expenses? SFH? Condo?
Looks promising to me but not enough info.

I would approach this differantly than most. I wouldnt make a cash offer. 

My offer would be a structured purchase or terms or whatever verbage you are comfortable with. I would offer to purchase the house for full market value but paid in monthly installments, that way grandma gets the income while she lives, and the remainder of the equity goes to her heirs.  This should make the thorn happy and give grandma an income that will last for her entire life, as well as a legacy to pass onto her children.

Any RE attorney can set this sort of purchase up for you.  The legal documents will chage state to state but the concept is what you need to explain.

I hope that helps

Josh

If the owner is still lucid and wants to sell then it's pretty straight forward. Are one of the siblings currently power of attorney? If so, I would approach them. Depending on the situation having one party who is not on board could potentially derail a deal. 

Check with your Attorney about what will happen if the mom stays in the nursing home for an extended period, the nursing home has rights for payment that could come from the house later, they have several years. This could be a good negotiating tool with this thorn. If this is correct in your area he could lose his interest anyway if the cost of the nursing home gets bigger than what she can pay, or possibly if she passes. He then would want the money instead of taking a chance. Hope this helps, laws may be different there so please check with a good Attorney before taking this route. It is just an opinion, I do not know your laws or all the circumstances. Good luck!

Buy the stubborn sibling out. Offer him some part of your profit or pay his security deposit to move into an apartment; something like that. Is he employed? If so, encourage him get into the RE game himself. He may just be stubborn out of jealousy. He thinks that you are about to become RICH and leave him in your dust.

Make him an offer that he can't refuse 😊

I have a question about how to use private money. When you make a cash offer on an reo you have to show proof of funds. How do you do this if your going to use a private money loan?  Do you disclose your lender and show proof of funds from their account?  Thanks for any help.