All Forum Posts by: Randy King

I have a tenant of a SFH that was in a bad accident March 1st. He was the lone occupant of his vehicle and there were 3 people in the other vehicle of which one died. He was in serious condition and has had surgery, but is not life threatening now. I was not aware of this until the wife called on March 3rd and explained situation and said rent was going to be late (rent is due on 1st and late after 3rd) but would be paid March 6th. I did not receive it. I do not want to be uncompassionate. What would you do?

Matt Harrison 256-533-7711 Real Estate Attorney, Amy is his assistant. I have had 10 closings with Matt in the past year and he does excellent work. He is located in Huntsville.

@Joseph Accetturo 

All figures were for illustrative purposes only to help clarify what the contribution limits of a 401K are, but thanks anyway for your concern about my well being. If you are a CPA you should know that there are many factors that determine what can and cannot be taken as salary such as a reasonable salary for work performed.

Clarification: I am referring to costs associated with getting a property ready to sell. When a property is purchased, most rehab costs associated with getting a property "rent ready" is added to the basis. My quesstion is getting a property ready to sell. Are those costs normal expenses associated with rental property ownership and expensed or do they need to be added to the property's basis?

@Steven Hamilton II 

Could you chime in?

We are in the process getting a house ready to sell that has been rented. Are expenses such as painting and misc other items expensed for that year or are they added to the properties tax basis when sold?

@Account Closed HUD's counters are not counters as we know them, they are just the minimum offer that HUD will take at that time. If you rebid at their counter and a higher bid comes in, the higher bid will win. HUD's earnest money requirement is $500 for offers less than $50K and $1000 for offers greater than $50K. HUD will reduce the price after a certain amount of time, so you have to monitor on a regular basis. The scenario you wrote about happens frequently with HUD, it is just a function of how their asset managers work. Their are a lot of posts regarding the HUD bidding process on BP.

HUD requires that the contract be submitted in the same name as the original bid was submitted. How do you handle this when wholesaling?

@Lisa Mauritis 

The HUD inventory is low in my area at this time. I do look for a specific type of property and try to be patient and let the price come to me. However, HUD is not discounting as much as they were even last summer and are waiting longer to reduce prices.

@Lisa Mauritis 

I have bought several HUD properties this year. In my area there are 3 HUD asset managers. They each have their own separate and different tendencies . I keep tract of each property, the DOM when prices are reduced and what % discounts accepted for each asset manager. Over time you will start to see patterns. This will allow you to time your offers and bid amounts. Putting in the same offer each day is probably not the most productive thing to do.

You can't do any rehab to a HUD house prior to closing. HUD can cancel the contract and keep your earnest money. HUD views this very seriously.