All Forum Posts by: Rob Beland

@Vonetta Bookerthe short sale specialist (RE agent) negotiates on behalf of the homeowner with the bank to get a short sale approved. A few things have to happen first. The homeowner must be behind on their mortgage and must prove that they can't afford the house and they can't sell the house for what they owe (they need to have some sort of hardship). The homeowner must meet with an attorney prior to starting the short sale process in order to understand the credit risks and legal ramifications of a short sale. 

The bank will want to see that the house has been listed publicly for a period of time and that it did not sell. They will require a BPO (Broker's Price Opinion) to determine the market value of the property. 

After all of these things happen, the bank, if it so chooses, will allow the property to be listed as a short sale. The listing will have to be public. The bank isn't going to allow you to come in and make a side deal. 

As far as the RE agent getting paid, the agent will negotiate the fee with the bank. There will be no money going back to the seller in this type of deal. They don't have the option of walking away with $10K or any amount for that matter. They are walking away from a $300K mortgage that they aren't going to have to pay.

Wholesaling a short sale is near impossible due to the complexity of the deal and many banks won't allow the contract to be assigned though here on BP you may find somebody with a great story about how much money they made wholesaling a short sale.

Talk to the owner, see if he is agreeable to going through the short sale process. Put him in touch with the short sale specialist and get the process going. Wait and see what happens and you might be able to get the property but don't miss out on other opportunities waiting for this one.

Good luck.

I would suggest one lease with all three tenants signing joint and severally. Have them send one check monthly. It's up to them to have one person collect the rent from the other two and mail one check to you. the joint and several clause basically says that each of them is fully responsible for the lease. If one tenant loses their job the other two have to cover the entire rent. All three are responsible for any damage no matter who caused it. Make sure they all understand what they are signing and what you expect of them. For the first payment if it's easier to get three checks due to certain circumstances that should be fine. Make sure that going forward they pay you with one check every month. Good luck @Manoj N..

@Evan Kelleher prior to closing you should have the tenants sign an estoppel certificate which will state how much their rent is, if they are behind on their rent, when they moved in, if they have any outstanding maintenance/repair issues that the landlord knows about and hasn't addressed, if they paid a security deposit or last month's rent. 

Ask for a copy of the lease/taw agreement. 

Beyond that the seller is going to tell you anything he can to get you to buy the property. Do your due diligence. Don't rely on what they say. Saying they are good tenants is a subjective statement. The seller may think they are good tenants and may not care that they occasionally pay their rent late. You will take over the property and have your own rules. 

Good luck. You have some research to do. 

There is no formula so to speak @Robert Vieira. You need to find comps in the area that support your list price. If it's an investment property you need to so some research on cap rates in the area and see what other properties are selling for (what returns are similar properties bringing in). 

@Chris Moskal

You need to check with your local animal control officer. Unfortunately cats are not typically registered like dogs and they don't have the same regulations for keeping cats on leashes. She isn't your tenant anymore so there isn't anything you can really do in my opinion.  If the cat goes to the bathroom on your property put it in a bag and leave it on top of her car. 

Be done with her @Chan K.Serve the 14 day notice. You have to go through the process to protect yourself. If she moves out and cleans the place give her back her deposit and you don't have to go to court. Let me know if I can help out in any way.  

@Luisito Espanolayou take a tax deduction when you spend money in or on your business. The way to make the most money is to do real estate deals that make you a lot of money without having to spend a lot of money. More tax deductions does not equal more earned income. 

An LLC is a pass through entity which basically doesn't exist in the eyes of the IRS. Im not sure you can sell an LLC so to speak. You're attempting to avoid paying taxes. Maybe @Brandon Hall can weigh in. 

One thing to consider Vy is your personal debt/income is going to be the basis of the banks credit decision. Wothout the $67K cash in hand its not likely you will get financing. If you use the equity and cash out you are now bringing on $67K more debt. You will have to show the bank you can support the new debt without relying on your income property. I personally think its too risky to use the equity. You're essentially financing 100% of the income property which is risky. You may need that equity someday for a new roof, furnace, etc...Its tough to comment not knowing your personal financial situation but my instinct tells me hold off on investing until you have some money saved up. 

The remediation company will strip away all sheetrock, insulation, etc...basically gut the areas affected. You will then have to rebuild everything. Again, impossible to say how much without knowing more details. It also depends on the size of the house and how many rooms are affected. You really need to see the house and if possible get in touch with a company that does mold remediation such as ServPro (in my area) and see if they can meet you there.