All Forum Posts by: Robert Haworth

That's the impression that we got, Wayne. He needs to ID a buyer who would run it like he has been.  That's not us. 

The house is zoned residential/commercial and he envisions it being run as a B&B. That concept might fly, as it's a solidly built Sears kit house from the 1920s and located in a historic area near Valley Forge. 

He's really painted himself into a corner. Too bad that he has absolutely no business sense or ethics. His improvements have made his house unsaleable, been on the MLS over 500 days. He's built his asset on a unsustainable base of tricky practices.

Hi BP:

Just had a conversation with a private seller who has a 1600 sqft multi for sale in PA. He was living in the house with a buddy and about a year or so ago he did a rehab that converted a 3/1.5 to a 6 BR/6BA. 

He's a plumber and did all of the construction, electrical, plumbing work without permits. He's not on the books with the local municipality, and therefore has not gone through any safety inspections, has no fire safety or egress means in place and is not paying taxes on the increased beds and baths. He uses no leases, only collects rent in cash, and likely doesn't report the income.

We would never run our business this way, just not worth the risks. We've run into this a few times with local multis. 

Besides this guy dropping his price so we could mitigate these issues, are there any other comments/ideas how to solve this? 

Thanks.

Dana DeLuzio, Platinum First Realty

460 S. Lewis Rd

Royersford, PA 19468

BP: This property is now available and I welcome all cash buyers that invest in Somerdale, NJ (08083) to contact me. 

Robert Haworth

484-459-1186

We were living in a MD town close to DC. We checked out a vacant HUD house and obtained the keys from the town administrator. It was super creepy, but we walked around the first floor before walking upstairs. I went up first, my wife behind me. Just as I had walked up enough to see the landing, I saw a body! I turned around quickly, and zoomed down the stairs, accidentally knocking my wife down in the process. I scooped her up and we were our the door. After we were outside, I told her what I had seen. We called the administrator to report the finding. At that point, he asked the address. Turns out he had given us the wrong set of keys. The house we had been in was due to be used by the fire academy for training. The "body" I saw was "Rescue Rick," a fireman dummy that they use to practice pulling people out of burning buildings!!

Hi Geoff, We invest in nearby Chester county, but live in the DC metro/VA. We know a great young guy who owns a roofing co, but has been investing in MF in Lancaster city. He's trying to sell several to raise cash to get into a bigger apt building. If you'd like his name/contact info, PM me. Starting a rehab now, so will be in PA on weekends in the short run. Thanks, Robert H

Yes, seller is proposing reimbursing us (as buyers) in advance of settlement with certified funds for their share of the transfer tax and all commissions. These would appear on our side of the HUD-1, but in reality, the seller would give us the money beforehand. Seller is losing several properties and I guess doesn't want the bank to know they have the 7k in cash. This was discussed between both agents, the broker, and the title company this morning. Still thinking it over.

It would be all cash, if we go for it. They're in foreclosure and are losing the house in 2 weeks.

BP Nation:

Am in need of a quick read on this unusual situation with a distressed investor/seller unloading several properties. We are trying to buy just one. My agent is asking her broker as well as a settlement officer about this workaround. Want to make sure that this doesn't place anyone in the transaction in jeopardy.

Our agent came back with this:

Listing agent called me back and here is what they are offering. They will accept you offer and remove the sellers assist. They are asking that the charges of 1% transfer tax on their side as well as commissions show on paper that you paid those and in reality they will give you a check for those fees before settlement to hand over to title company. They can not show that they are paying because of other properties being held by bank.

The HUD-1 will look like you are paying an additional $7000 but seller will give you a certified check for this amount to cover those fees prior to settlement made out to the title co.

Hi Kevin, we're active investors based in Reston as well. Congrats on your first property! What's your market? We invest in the Philadelphia suburbs. Best of luck, Robert Haworth