All Forum Posts by: Steve Hall

@Luis Felix

If the fence is on the neighbor's property, then the neighbor can do whatever she wants with the fence, because it's HER fence. If your mom likes the fence, then she should be happy the neighbor is moving it and not removing it.

If the neighbor is complaining that the fence is your moms, and that your mom needs to move it back onto your mom's property, then you're mom just says "That's your property, that's your fence."

The only issue is, if the neighbor knows that your mom likes have a fence between the yards, the neighbor could say, "Move it or lose it." Then your mom has a decision to make!

@Jeremy Dockendorf

I fail to see how this seller financing is attractive (to you) for a primary residence.

I also don't know why you think a seller would agree to tie up the property in a contingency situation when he/she could leave it on the open market and get cash.

@Mary Jay

No one cares how many properties you own Mary Jay, it's how leveraged you are that matters. (i.e. how many mortgages you have.)

In fact, those paid off properties help your DTI because they count toward income.

That said, if you have 10+ properties and you are still doing all of the purchases in your personal name, you are making a HUGE mistake. You need an attorney and an accountant to advise you on how to structure your business properly.

@Justin Miles

Medicaid is for people with limited income, not wealthy real estate investors with living trusts. You are asking us how to help your grandma commit fraud. You are already an accomplice, and now you've posted your intentions on a public forum. Conspiracy to commit fraud can be charged as a federal offense.

While I believe in filial piety to a point, I would not go this far for your grandma or for my grandma.

I doubt anyone else on BP wants to become an accomplice either...

@Suvarna Joshi 

Did you read the insurance contract cover to cover? I'll bet it does not cover what you think it does...

Pay contractors only when they're done!

Seriously though: Zelle is a payment system for friends and family. DO NOT use it for business. Use online bill pay (from your business account), pay with a business credit card, or send them a check (from the business account.)

@David Harper 

Find another lender...

@Doug Peters

Lease Option. Raise his rent by $200 per month and for the next 12 months, credit $400 per month toward his down payment. You could even make the price of the house $2,400 higher to offset your loss.  Remember though, with the lease option the tenant pays for everything now - even repairs. So you've basically just bought yourselves another year of cash flow AND you have a buyer!

Personally, I would have offered it to the tenant before I listed it, saving the 6% commission.

@Shamus Wheeler

Look thru the inspection report, make a list of everything the inspector recommended that you repair, and find out the cost of each item. Then add it all up. I think this is a bigger project than you can even imagine...

@Kristin Whitfield 

Is this your first property?

• Never buy a property where you cannot see inside the units. If you want, make your offer with a contingency that you are provided access to all 4 units within 7 days.
• I would think twice about buying this property since you will be inheriting TWO uncooperative tenants and one vacancy. Do they pay on time? Are they month to month? (i.e. Can you get rid of them quickly?)
• You are also inheriting $7,000 worth of (known) interior work, as well as exterior deferred maintenance (new roof). If you can get that at a $30,000-$40,000 discount, then it might be worth the hassles with the tenant issue.
• Current PM needs to be let go since they are not doing their job.
• Your owner financing makes this really hard to turn down. I would still try to negotiate that financing... (I would probably try to stretch the balloon to 7 years and the interest rate to 5% and see if you can settle on 6 year balloon at 5.5%)
• No one is going to accept a 1 or 2 year moratorium. Perhaps if it were 100% vacant, you could get 6 months, tops.
• Why would you want to pay a middleman to take your mortgage payment and forward it to the seller? 
• Record keeping is for your accountant.

What is the ARV on these duplexes?