All Forum Posts by: Matt N.

Hi @David Krulac,

Would you mind taking a look at my last post? 

https://www.biggerpockets.com/forums/742/topics/62...

It sounds like you could help me out. What do you mean when you say "We've done those suits".

Thanks!

Matt 

Hi BP community,

Disclaimer: This is my first deal where I've sourced the properties and ordered the title.

I'm seeking advice in clearing up a title for an off market deal that I have under contract. I'm buying the properties for myself, to add to my portfolio. The seller is old, tired, has ****** tenants, therefore is giving me a good deal! He wants cash in his pocket and minimal headaches. He's not very energetic or tech savvy.  Below are my questions; and the email back from my title company. 

Thanks in advance! 

Question 1. 

- Should the title company be sorting this? or is the Seller responsible?

Question 2. (if the seller is responsible)

- Assuming I have to help the seller to help the title company. What can I do! From my understanding, only specific people can attain death certs. 

Hi, 

Yes, I got what I needed on Matt's end. Dave ordered LOI's and we are waiting for them to come in. There are still some items on the seller's end though that he was unable to assist us with.

On 1XXX, I still need from the seller:

- Need to know when PERSON A died (seller says he knows PERSON A is dead but not sure when) We need to make sure it wasn't within 1 yr from Seller's acquisitions from PERSON A or transfer inheritance tax would be due)

On 1XXX, I still need from the seller:

- Proof of death for PERSON B   (PERSON B, PERSON C, & PERSON D acquired this property together. Then only PERSON C & PERSON D transferred it to our seller. So our assumption is that PERSON B is dead but Seller says he wasn't related to PERSON B & has no knowledge. It is important that we figure it out or PERSON B has outstanding interest if he's not dead.)

- Need to know when PERSON C, & PERSON D died (seller says they are both dead but couldn't remember when) 

- Inheritance taxes for PERSON B (can be escrowed at closing)

Regards,

Hi BP,

Has anyone used "Bagster" by Waste Management in Philadelphia? I have to do a clean out, not enough material to justify a dumpster and permit costs. I can't find great info about the legality of Bagster. It looks like WM has a 3 day window to pick this up, so it may sit out, and get over filled by neighbors. This is a high traffic and main street. I'm wondering if I can put it on the sidewalk legally. 

This is a row home, zoned commercial, on Market St. Very high traffic by foot and car and police. I want to make sure I do the right thing.

Thanks in advance!

Matt 

@Matt Tallent I live in Manayunk and would not mind meeting for a beer to talk real estate. Sounds like we have different strategies but may run across some deals to share. I buy and hold <50K properties around the city. 

-Matt 

@Lana Lee Hi Lana, Disclaimer: I wouldn't consider myself experienced. I own 6 properties. I'll still tell you how I found and bought this, but its not for everyone. Definitely not recommended. 

I look EVERYWHERE. After days of sifting through sources, off market, emails, calling wholesalers etc. I went on Realtor . com.   Why not right?! 

I found this intimidating listing below, listed at 50k with a couple recent price drops. I did my research, found shell comps were selling for ~65k-70k. The listing was so scary nobody was interested! The agent talked about squatters "which is scary", and he was tired of it. He gave off clues that the seller was also motivated, so I offered 30K and closed at 35K. 

This was risky, site unseen. I waked the property, looked at aerial shots on google, talked to neighbors, etc.  I don't recommend buying a house this way. I made sure I could sell it, as if it were a burnt out shell, for 50K before even making an offer, Since I had no idea what the inside was like. I got lucky, very lucky, but I had an exit strategy. Always have an exit strategy. So was it luck? 

@Lana Lee This debt is taken care of at or before closing, it comes out of the sale proceeds. Sometimes sellers don't know they owe as much as they do, and will walk away (since they can still rent the asset). They may also look to the buyer to help (i wouldnt). 

In this case, the seller put about 10k in their pocket and paid 25k out to the city at closing. I get the house free and clear. 

@Steve Babiak. They said they had no contact. Who knows! 

Thought I would update ya'll.

So I made contact with "the squatter". It turned out to be a family with kids. Seemingly nice people. I presented a lease at just below fair market rent. The idea was to establish the relationship, and to create a legally binding agreement. This way I can carry on with an ethical and legal eviction if there was no rent payments. They happily agreed to the rent and have been paying on time every month!

I'm not doing as well as I could if i were to rehab and refi, then find new tenants. But the rent I'm receiving fits my model, and the family can live their lives and not be upended. So I've got >300/month cashflow at <5% GRM. Everyone wins. No headaches or heartaches.

Since every good deal has a story (or more than one) I'll share them.... 

The Seller: "There's squatters who haven't paid since 2012! I'm too old and sick to deal with them." 

The Tenants: "The owner got sick and we have only heard from his daughter once in the past 6 years! The city keeps sending foreclosure notices here in his name. Do we have to leave?!?"  (my answer was "Of course not! just pay ME rent on time and let me know if you see any more notices")

The facts are: >20k owed in taxes, trash collection, etc. The seller was sick, and his family mismanaged his properties. He was too proud to admit this.  So I got a triplex for 35k that only needed a roof and some window capping. (on Market St. fam)

Happy deal hunting.  

Thanks @Steve Babiak!

The original lease was month to month, no renewal clause. Could this help me? I understand I can post notice once the term of a lease has ended. But month to month is kind of open ended. 

I'm guessing It's best to get them to sign a new lease, and then proceed. Hoping they pay.

@Steve Babiak. This is a great point. I've never had this situation, only rehabed rentals that I know were A-OK. I'll have to get in there.

@Chris K. The previous owner had a relationship. What does this mean for me though? 

I agree, this has some sort of story. What i'm told is that the previous owner is old and was tired of this place and trying to evict. I met him, he was old, and he looked tired. He owed everything from trash collection, to city taxes, to contractor liens. My best guess is that's why he could not evict. 

I have no idea how to find it this was a judicial sale. 

Thanks everyone for the feedback!