All Forum Posts by: David Rawls

Hello,

I'm a Licensee and I invest in RE with my business partner. When we buy MLS properties; Would it benefit us more to take the commission or should I decline the commission for the sake of lowering the purchase price?

The bulk of my personal income is tax-free and I only have 1 rental in my name that counts towards my taxable income.

Are there other aspects to this question that are outside of the tax realm?

Thanks for any input!

@Ryan York I think this was for that teardown house that Duane told us to steer clear of. Needless to say I didnt acquire it lol

Hello BP,

I'm acquiring a vacant lot in Fraser thats almost .6 acres. It has all utilities and ready for new construction. It's on 13 mile near Groesbeck. Looking for an experienced opinion on price.. A developer perhaps?

@BJ Henderson As Charlie said.

However I would add that if those sellers have bad debt (behind on taxes, mortgage, the like) don't attempt to do a Lease Option. Their troubles could become your troubles.

There's a few people on BP that use Sub2 all the time and they recommend different techniques. I suggest that you take a course or read a book on Sub2 before you jump right into it. If you handle it incorrectly the sellers could get in to some hot water, and your reputation (and all of ours as investors) will take a hit as well.

Good luck!

@Charlie Fitzgerald I've seen the Land Contract and am working on getting a copy of it right now. He is a little sketchy.. but hopefully with enough caution I'll be able to pull through.

@Brent Coombs On that Land Contract he owes 127k and some change. It's an all cash purchase and it won't be given outside of the title company. 

Will S need to be at the closing? It is still T's property to sell for the time being correct?

Obviously S doesn't want to sell for 130k. He could foreclose and get someone else in there with another big deposit.. Im working on getting a title search right now. Should I just go to the title company with the contracts and ask what to do?

I just got a house under contract. The person selling (we'll call him T) obtained the house under a 3 year land contract with a balloon, he put 50k down on a 200k house. He told me he the land contract ends at the end of November. I spoke with the original owner (We'll call him S) of the house and he told me the contract expired October 31st. T hasn't paid the balloon and is living there without permission.

I'm buying the house for 130k. T doesn't want me to give any numbers or details to S about what's going on, other than we have it under contract and are buying it.

My question is: Does T have the legal right to sell the house to me? He hasn't been foreclosed on so I'd like to say yes. 

Do I owe anything to S? What, if anything, will I need to disclose to him?

Thanks for any input!

@Kevin Flowers Welcome! Thanks for the introduction. I invest in Metro Detroit as well (Macomb County mostly.) I look forward to potentially working with you in the future.

Good luck!

Well it sounds a lot like a sandwich lease option.. You need a license for those. Maybe someone can come in and expand on this a bit as I am not familiar with master leases.

@Rob White If you aren't a licensed real estate agent, it's illegal to manage properties that you don't own.

Also, that would only work if the seller will allow you to sublet, unless you tell them up front what you plan on doing - they or their lawyer will notice the sublet clause isn't in the lease.

Thanks for the post!

 @Brian Gibbons. Could you expand a little further into your "Illegal Lease Options" segment? It's illegal to not give rent credits and require tenants to pay for maintenance?