All Forum Posts by: Douglas Snook

How have you purchased your flips in the past? Individually or are you already a corporation? 

When you make your offer be sure to include some language such as "Tony D. and/or his assignee". If the seller asks tell him you will be forming an llc to hold the property. I know one investor that is a corp but forms a new LLC for every property. It usually gets filed with the secretary of state a day before the closing date.

Be sure the offer or the P&S has a funding contingency clause so you can get out if the hard money lenders does not think its a good idea and won't lend.

If you want to do this DO IT! Don't let them tell you no. Some people are not meant to be a landlord and thats OK. If you think you have what it takes and have prepared yourself, like joining BP, go to some real estate investment groups etc. The I say take the plunge. If you find you don;t like it you can sell.

I went to one of those free seminars and they had a good term for people like that DREAM CRUSHERS.

If it is something you want to pursue then do it. Did they say don;t go to college? Don't get married?

Not to say it is easy or not without head aches but everything is! You just have to be sure you can stand the head aches and aggravation.

Best of luck!

Yes real estate closings are handled by an attorney, usually.

I would get a second opinion from an attorney that does EVICTIONS not closings. He is right, the title is clear, but that is not the issue.

I would start eviction as there are two units and you need to know who is there and regain possession of at least one of the units to start renovations and get some money coming in. The court may give the elderly couple some extra time but the others need to get out. Also with the eviction they may be in a better place to get elderly housing as it is now an emergency. Worse case you can keep the pressure on even if the court gives them 6 months for a review. You can eventually get them out. They would have to pay some kind of use and occupancy even if it is below market rate.

Ron S

It has been my experience, albeit limited, that in doing a short sale, the bank wants a BPO from a company they usually use to list the property after they have foreclosed. Not always but sometimes. Sometimes they have wanted two or three opinions before a short sale price/listing amount is agreed to.

If you let it go forward, he and/or you may need a special insurance rider to cover this. If thats the case then you should do and addendum to the lease requiring him to have the insurance and show you proof etc. If you have to obtain it then require he pay the premium. Also put in that he is responsible to remove it and restore the yard at the end of the lease.

I would also fire the property manager.

Banks do what they want and it is not always rational to the outside world. The bank wants it listed before entertaining a short sale then so be it. Are you going to list it or does the bank use their own realtor? Once it is listed make your cash offer and see what happens.

If you represent the cash buyer, is he OK buying it occupied? Then he can do the eviction.

I have represented several cash buyers who bought occupied property and then done the eviction. It's not always pretty or easy but it can be done.

What about suing the Seller for either specific performance or for your title work? These items that you 'cleared' did things need to be recorded at the registry? Affidavits obtained? etc. Surely you should be entitled to be reimbursed for that work.

Definitely talk to an attorney.

As for finding the executor, I am not sure how it is done in TX but in MA you can go to the probate Court for the county where the death occurred and look up to see if anything has been filed (this can now be done on line as well) That should give you a name and address, may be an attorney.

Another possibility is for you to apply to be come the Administrator (when there is no will the person in charge) or a temporary Administrator until someone else comes forward or the will is found that names an Executor. If you are the administrator you are charged with safe guarding the estate and can lock up the apartment. Also this may prompt the family to move to do something with the estate and then replace you as Administrator.

I don't know if you need a real estate attorney as much as you may need an estate attorney. Since the rent is paid up for a year,  I would not let anyone into the apartment to remove anything without you being present nor would I give anyone else a key

If the family has not cleaned it out by the end of the lease, then I would start eviction proceedings.

Larry

What kind of insurance were they requesting? Maybe some kind of short term life insurance policy type might be legit. Then if something happens before a refi out of hard money rather then having to foreclose, the insurance pays off the loan and your estate keeps the property. As an example, my mother bought a new car that she financed and she got some kind of life insurance policy so if she died during the term of the loan the balance was paid off and the family got to keep the car.

Origination fee and/or points are typical.