All Forum Posts by: Tom Goans

@Thomas Sevigny,

I am not understanding your question.

@Mark Gilbo,

You should not have a problem listing and selling real estate that has a contract for deed. If your contract for deed is written the way mine are, your contract for deed may be assumable upon my written approval by the note holder of the new borrower. If not, the buyer will need to get a new loan as is common in many other real estate transactions. Or, your attorney can contact the note holder and negotiate a written assumable clause to add to your present contract for deed.

A quick conversation with an attorney where the property is located is the most reliable advice and highly recommended. Legally, it is the only legal advice you should consider.

Your attorney will have the opportunity to read the actual legal documents of your purchase and then provide you with the options based upon the language contained within your contract for deed and purchase documents. You and your attorney may want to make sure there is not a prepayment penalty or other restrictions.

@Holly Baldwin,

There are far more considerations to properly answer your question or respond to your examples.

Understanding the target market is key to your success and answering your question.

@Yinan Q.,

In my opinion, whether or not you move actual dollars around, your time has value and should be considered a part of the expense when evaluating an investment and return on the investment.

@Chris H.,

The value of your time.

What is your time worth and how much time are you spending trying to gain such a small amount? Is this a good investment of your time?

I am old-school. I find value in managing time and costs.

@Jeremy Merwarth,

Do sellers seek investors?

Or, are sellers seeking top dollar from a buyer?

Are investors considered top-dollar payers?

These questions may help with the designs of your blogs.

@Hernan B.,

I have very little experience with attorneys. Mostly just to review legal documents. All were very aggressive about getting paid. My point, if your attorney does not get paid by the tenant, I am guessing you will become the source for payment. After all, you are the one who hire the tenant.

In many cases, tenants have no money to pay rent plus all the extras you seek in a court eviction and resulting judgement. I would not count on receiving money from the tenant. If you do, based on my experience and conversations with other long-term investors, consider it a rare occurrence.

I always handle evictions myself. Very seldom does it become necessary to escalate the process to the legal system. I politely ask the tenant to leave and most times they do. I give them time to vacate and we all move on. No demands for more money or the back rent owned. We just all move on. This process is generally much faster and more economical. The cash flow resumes much faster and I have never had a tenant take revenge on the property. And I did not make a Benz payment for the attorney.

@Doss Mann,

You have just verified my tenant screening method of why it is very important to have a conversation with the prospect. One of my questions is to discover the interests and hobbies of the tenant. Talk little and focus on listening to what is said and not said.

A conversation can be far more revealing than the paperwork.

And, no, I would have never rented to this person.

Please Seek Legal Professional Advice

Legally, legal advice and legal documents can only be provided by a licensed attorney in the state where the property is located. The only alternative is using state approved forms. You should only consider legal advice and legal documents that are provided by an attorney you hire or by the state. Any other legal advice or legal documents are ILLEGAL and may be very incorrect.

Seeking advice from an attorney in the area where the property is located can be a wise and very economical decision considering the alternative. An attorney will assure you are abiding by the federal and state laws. Every state has unique laws. The attorney will also provide the best advice and options for your specific needs with a consideration for your future. The results will be legally drawn up agreements for your use.

@Account Closed,

You mentioned your project was profitable.

If you factored in the risk and time-value-of-money, would the project still be considered a good investment?

The lessons learned have value. I too have many school of hard knocks under my belt. Good lessons learned. Just an expensive way for me to learn them.