All Forum Posts by: Russ Draper

As a buyer, I pay for the extra title insurance when I purchase a property.  If their lawyer put you down as liable and you signed, oh well.  But why would you buy another policy for yourself if you are leaving?  Once they have paid you the money isn't it their problem?  That is why they got title insurance! 

Just like a car in most states, sometimes you don't even have to register them.  Some older ones don't even have a title with the state/town, just a bill of sale because it is personal property.  What year is it and how much?  How much work do you think you have to do?  It can be harder to sell MH than houses due to the park owner, make sure they are onboard with you flipping it.  A bad park owner can screw you over!

Their responses to me say they are trying to build your desire to buy, so likely overpriced properties or they don't really have anything for sale now but want you excited ahead of time so when they do have a polished turd to sell you you will take it.  If you think they might be good deals I would check them out for 6 months but not buy anything.  Be sure to find a local realtor to give their opinion too.

Even with you sharing the 4th unit, rRight now it doesn't appear to meet the 1% rule, let alone the 2% that I personally like to get!  I would pass.

Does the law apply to S-Corporations? You can change from LLC to S-Corp, maybe that is a way out of this problem?

I think if they own their property you can't do much, buyers can walk away for virtually any reason if they haven't signed a P&S. Even then they can just say they couldn't get a mortgage to close.

I think its up to the buyer to get title insurance, if you sold it why would you want to be protected?  Is there a law that would make you liable here?

I take it the mortgage for this property is in your personal name and not the LLC? Until the mortgage is paid off most banks I don't think would count it as being owned by the LLC even if you filed a quitclaim to the LLC. I think technically you can get a HELOC in your personal name and then yes of course give it to the LLC, but if the bank finds out you did that they may call the note due and you would have to pay it all back right then. I haven't heard of this happening but I think it goes against the bank policy. Did you talk to a lender yet?

My initial reaction is the $1000 in sewer bills is partially your fault for not staying on top of the rental!  I would see if there is any way to get him out by talking to him, even paying him something small to leave is better than him staying.  I've heard of people doing illegal things to force deadbeat renters to leave but I won't post it here.  I doubt you would collect anything from him, if he has no money you can only hurt his credit more, and the bankruptcy is going to hurt him the most anyway.

I don't know how to get multiple FHA loans, I've never qualified for them so I can't comment much. I would think after closing you could rent out the other unit without issue. If your partner is investing money into this property I would expect them to want to be on the title of the property (and thus the mortgage)!