All Forum Posts by: Pat L.

One of the best deals we did (& I still own it) was knowing from RE agent friend that an elderly man was living alone after the passing of his wife.
The home was a big old two story built in '42 with all the plaster & oak still in original but very tired condition.
The agent was trying to work out how to approach the old guy so the girlfriend & I just knocked on the door. We bought it owner hold @ 18%. Yes it was during the 1980's.
It took us a year to restore it as we planned to live in it & it appraised high enough to refi & pay off the owner hold.
The girlfriend & I did several more over the years & the ones we got were a lot of work but very profitable. We tried letters but rarely got a response. Also in those days the owner holds often made the deal. I bet if you offered a good return on an owner hold you may be surprised at the response.
They can only say no or shut the door in your face:)

Good points...
He mentioned that he had it tested several times each time he done some rehab work on the property.
However, those testing it made him sign waivers & according to his attorney they are immune from liability. We did discuss it at length, but unfortunately I haven't seen him around lately.

There are a number of cases in our area (NY) where damages were quite high.
The problem with Lead poisoning is the statue. The child/guardian is able to sue up until the 'age of majority' so landlords who may have sold a building many years ago can & have been held liable. So much for that old LLC (if they had one) or the strategy of equity stripping.
Furthermore, I believe it was after the late '90's that insurance companies/policies could 'exclude' lead poisoning coverage.

The following is just one of the Law Firms specializing in such cases (on contingency) & it does give several examples of verdicts etc.
http://www.lipsitzponterio.com/Practice/LeadPoisoning

My point is that as RE investors we have to be very aware of the consequences no matter how diligent we are.
As they say 'ignorance (or being in denial) of the law is not a defense'.

I gutted an older 'model' home for my daughter.
I forgot :):) to get permits & the Building Inspector showed up
& immediately started to ***** about all the code violations.
I reminded him that other than exposing it I hadn't yet started on the wiring, plumbing not to mention the gas line hookups & the 'illegal' (his words) furnace exhaust.

The short cuts taken were amazing esp in the wiring.

ah!!
the ultimate tax deduction.....

I use an LLC & high liability Insurance but the wake up call was a local landlord being sued for lead paint.
Properties all in LLC's with high liability insurance, had the place checked 3x for lead etc etc. Lead inspection guys not liable.
He told us his legal fees are currently $56,000 & he was just going to trial last month the plaintiff was going for $8mill. We don't yet know the outcome.
This maybe a unique circumstance but how do you protect yourself from the above REAL LIFE scenario?????

Went full time in '98 @ age 49 & we never looked back.
I actually have friends my age still working 9-5, with mortgages & no plans to retire because of their finances.
I now enjoy mentoring young kids.

Always Buy very carefully & definitely be married to the right woman!!!!!
Although a Heidi Fleiss type could have been a good 'hard' lender!!!! ( No pun intended)

Exactly
Unless you are assured of significant cap app, you would be better putting the $100k into a good dividend stock or hold a note.
In fact $150 after all ancilary expenses, taxes & inflation would probably return less than 91 day treasury bills!!!!

& they would be the type of buyers we are glad to sell to...

In my depressed, high taxed area I only LTO SFH & get @ least 10%-12% return.
Admittedly if I take it back & do a rehab it drops for awhile. I just did a major rehab on one after 4 years of LTO & the ROI has dropped to 9%.

You're welcome
I just got the newletter from our 401k solo guys
& they quote the biggerpockets Memphis survey.
To push their SDIRA etc RE investment strategies.
Maybe they should just distribute this guide to convince their clients.
Congrats

An impressive read. .....
I sent it to my nephew, a VP Finance
@ a local bank....& wants to invest in RE.
His comment...
This would make for an excellent 'reality' college course!!!
I guess that means it relates to the real world.
Great job guys....