All Forum Posts by: Leon D.

I'll happily accept a 100% seller carry back on raw land that's passed a Phase I, or a commercial property with a strong tenant or long lease. But if a seller is willing, without negotiation, to offer what I consider to be an extraordinary level of self-financing on a residential property, I'd think it's because they're desperate to sell, and want out before "it" (whatever "it" is) happens. When I sell a property, I price it based on the merits of the property itself and the market. I'm looking to get the cash and move on, not to act as a bank for the buyer. If I were to ever do that, it'd be because I couldn't sell it any other way (which is what this seller is doing... no one that can normally get conventional financing on another property can get it on this one, so he's lost probably 90% of the market).

Any cost/benefit analysis would tell you to pay $50 to have the bushes pulled out and replaced with azaleas.

I never presume to know what's in the mind of a potentially non-rational actor. I only rely on my own sanity, not that of others.

@Luis Silva Here's my two cents:

1) Impossible to say anything about the lawsuits without knowing their nature. But if there's something going with the development that's keeping you (or anyone) from getting FHA or conventional financing, then I wouldn't count on that getting cleared up anytime soon. If you buy the place with seller financing and haven't paid it off at the end of the three years, how do you plan to replace the loan if a bank won't lend on the condo?

2) Ask the association. The seller should have a point of contact with the HOA that should be able to answer whatever questions you have about the lawsuits, and what the HOA problems are.

3) Absolutely. Walk away. Having a seller offering to carry 67% of the asking price is red-flag enough for me.

@Kathlyn Lewis Hard to say without reading the fine print, but it's generally reasonable to assume that you'd be in the clear. That doesn't mean that your lender won't hit you with a fee if payment is received after the 1st, but I wouldn't be concerned about a credit-reporting issue so long as they receive it by the due "late" date.

Not so fast, @Joe Butcher . @Marcia Maynard may be correct in a rational way, "roses are natural, roses have thorns, everyone knows this, just take care of it and there won't be a problem." But lawsuits are rarely rational.

I see four possible scenarios:

1) You keep the rose bushes, and nothing bad happens, ever.

2) You keep the bushes. Someone (a child, or guest of a tenant, or a tenant's friend's mother) playing ball/frisbee near the bushes falls into them, scratching themselves up, maybe damaging an eye, and you get sued. At best, complaint dismissed, and you're out a few dollars for the attorney; no biggie. Or,

3) Same as 2), but a judge doesn't dismiss the complaint, and it goes to trial. At best, you win but are out a few thousand dollars in legal costs, at worst... use your imagination.

4) You dig up the bushes and assuredly avoid any possible problems related to rose bushes.

I happen to really like roses in landscaping, but NEVER confuse the ability to sue with whether the suit has any merit. Any lawsuit will automatically cost money to address, regardless of eventual outcome. And it's not you that decides a case's merit, it's a judge and maybe jury who's background and prejudices you can't begin to know.

Painted bath tubs? What are they made of? I've never heard of a painted tub: enamel over cast iron or dyed plastic/resin, sure, but painted is new to me. If it's any sort of plastic, I agree, replace it/them. If cast iron, I'd take a look at having a new coat of enamel put on.

The answers to these questions can all be found here, on the BiggerPockets forum(s).

@John Horner Yes, this is fairly common. Many cities (at least older, Rust Belt ones) have some sort of cost-share program for public works projects like these, where the direct benefit is likely to be enjoyed by the residents of the building adjacent to whatever's being fixed, so they (or you, as the case may be) have to kick in.

As for why your property taxes don't pay for it, you'd have to look at the tax bill you get in Columbus to see how things are allocated. In Chicago, about 50% goes to the public school system, a little to libraries, some to environmental protection and parks, public safety, etc. Each municipality has a different set of funding priorities.

As long as it doesn't contravene existing state law, the operating agreement can say almost you want it to. Want to split ownership 90/10 and profits 10/90? Go right ahead. Want to give the majority owner the title of Grand Poobah? No problem.

I think you're missing the subtlety of the advice being offered you. Try it this way: exactly what in real estate are you hoping to do? Development? Management? Construction (commercial or residential of infrastructure)? Finance (retail or bulge bracket)? It's rather like you are saying, "I want to be a scientist, what science degree should I get?" The answer to that depends on whether you want to be a chemist, physicist, geologist, astronomer, etc. There's no such thing as a "scientist" or "engineer" anymore, there are chemists and mechanical engineers. Likewise, it's not enough to say, "I want to be in real estate, so what degree should I read for?" You must ask yourself, what specific field *within* real estate am I interested in pursuing? What position do I imagine myself having in five years or ten or twenty, insha'Allah? And if that doesn't happen for some reason, can my education help me in a different profession?