All Forum Posts by: Patricia Steiner

Unless you're a licensed realtor, you can't perform the services of one. But you can - as mentioned earlier - be a part of the transaction. And, be careful how you proceed with the buyer so that he doesn't just cut you out and go directly to the selling agent. My advice would be this: level with the realtor. Ask that a contract be written in your name (do you have an LLC? You'll want one...) that is assignable. That's the only way to protect your interest in this transaction. After that is done, then share it with the buyer. If the buyer passes, withdraw your offer. If he wants to proceed, then you're in the wholesaling game and you will proceed accordingly. Know what you're doing...you can't wing it and win.

What does your lease say about early termination of the lease?  I recommend hand-delivering a letter to their unit to detail the cost of early termination and what funds are due and payable now - including February's rent and rent through the notice period.  It's not okay for them not to pay you and meet their contractual obligations.  Be sure to document everything; it might be worth a Small Claims filing to get what is owed you.

The seller customarily (and usually contractually) chooses the closing agent (attorney or title company) because they provide the buyer with a title policy at their expense at closing.  As a cash buyer, you are the receiver of a title policy - you will not be incurring this expense unless you finance it at a later time or sell it .  

Both a title company and an attorney will need an executed contract before they can start the closing process.  Again, the seller chooses the title company - not the buyer - because the seller is incurring the expense.  Hope that helps.

Yes - but it's the Property Details that are available to MLS subscribers only that provides the information from tax rolls, property appraisers office, sales records and more.

Are there any realtors on this forum who are located in Jack's city who can step in?  

You've received a lot of great counsel here.  I also like that a realtor in your city is on this forum. I would recommend meeting with at least two realtors before moving forward with one.  And, before you share your goals, get to know him - and decide if he is someone you feel you can trust, would enjoy doing business with, and if he has the knowledge/skill/attitude to represent you.  You don't need a "realtor"...you need and deserve a trusted real estate adviser.  

Property Appraiser Office is the first place I go.  I would also google the address and you'll be amazed at what you may find: voter records, neighborhood rolls, etc.  You can also ask a realtor to do a search on the address (it takes 2 seconds) and that will provide you with the county/city records if the property had ever been listed for sale in the past.  

Smart move on getting the Default Judgement.  And, now it's time to get your money back:  

1.  Why didn't they pay?  Was it fraud, cash flow, stupidity?  This will help you decide what course to take first - and take it quickly.  

2.  Did they do the flips?  Has anyone visited the properties?  What liens are on those properties?  Before I hired a local attorney, I would spend $200 to have a security company visit the properties, take photos, and record activity at the sites (license plates of parked cars, contractors, etc). I would also have the company drive-by their offices/homes and record what and who is there.  

2.  Look back at the information they gave you to qualify for the loan...what assets did they say they had at that time?  Foreclosure is a long and costly process - but you would be amazed just how quickly people surface when you attach and drain their checking account or file liens on their prized cars/trucks (walking is great when you want to, not so much when you have no other choice).

3.  Be discreet in doing the asset check because if they didn't pay you, they probably haven't paid anyone else either and you want to get your money back before the herd comes charging.  Find out who they've paid and not by calling for trade references (from contractor trucks at site or offices).

4.  I recommend hiring the attorney after you know the status of the properties, identified assets, and know the whereabouts of the defaulters.  You'll save money and time - and  have a better idea of how to proceed.

I hate that you're in this situation but as a former banker and investor - May the force be with you...

Before you do decide anything, do you have a qualified buyer?  Let the tenants know that you would consider selling it at market value if:

They can close within 45 days (or whenever you decide).

They can provide you with proof of funds to close and a mortgage pre-approval. (Be sure to verify both documents)

They can make an escrow deposit within 3 days. (You choose the title company to hold it).

They accept the sale AS-IS.

They continue to pay rent through the day of closing.

If these conditions are met, I recommend taking the money and moving on with the next great deal.  A dollar today is worth more than one tomorrow so as long as you get your (market) price and terms, get your due now.  Congrats on having such a great issue to share with us!

I spoke with Lending Club about small loans for an investor client. They offer up to $40k with terms of 36 to 60 months; there's no cost to apply and you apply online. Please know that I am NOT recommending them - I've never done business with them nor have my clients (yet) but I did find the representative to be knowledgeable, respectful, and helpful.  Might be worth a call...

Adnan, first and foremost, congratulations on graduating and starting your professional career.  Many of my clients are medical doctors and they also come with large student loan debt - which is really an investment you made in you and your future (the best kind of investment!) . My recommendation is this:  give yourself a break.  Make the regular payment, save some of your earnings for your real estate investment future, and live a little.  The economy is expected to continue to slow this year and next - and with it will come reduced prices.  You'll need 25% down to buy as an investor - or you can buy yourself a home for 3% down and stop paying rent.  The good news is you have options and time on your side.  You've worked hard to get your degree;  being a successful investor takes a great deal of knowledge.  Take your time to learn and wait for the right opportunity.