All Forum Posts by: Steve Morris

so if it falls in my favor i will definitely be buying title insurance!

I'd write your offer so that the seller warrants clear title at close.  Seller always should give you standard title insurance, so don't think it would make a difference IF you get a CLEAN title.

The original buyer may have some adjudicated damages, but unless it's something like specific performance (pretty rare), that'd be tough.

In the end, I wouldn't submit any offer without a clause stating the seller is NOT bound (and agrees not to market the property while under contract with you) by any other offer upon acceptance.  Seller may use it as a lever against the original buyer.

"The seller can refuse the buyer's request. While it isn't a new contract, it is like a counteroffer and the seller can say no. If the buyer still wants it, they can then walk away."

Disagree, if no modification, the buyer is still bound by the original contract terms.  This may be moot if he needs to waive something for the deal to proceed.

Where it comes into play (I've seen it before), is if the buyer made some E/M non-refundable prior, then I'd think he's lost that non-refundable if buyer doesn't perform.

Again, we're missing the original PSA for terms.

Well, hard money has a price.  They look for 2 things:

1) Ability of you to service the debt, so no income on the prop hampers that AND

2) If things go sideways and you default, taking the property back with enough equity to cover their loan.

If you haven't done this before, you're looking at way higher rates than FHA.

"Would it be wise to set up a separateLLC for each property that I have to protect each asset individually?"

Would strongly recommend it since it limits recourse to just that one property and not you personally in most cases. In OR, setting up a LLC is cheap. Just need an operating agreement (go to a lawyer on the first one), fee to register and then annual renew fee.

Maybe if she can't afford a RE license, she should rethink stuff.

There's a lot more in startup costs of marketing yourself as a broker.

Unless it's a solid goofball (i.e. way over market price) offer, I wouldn't do it unless you have a pretty high percentage of finding something that yields better.

Unless you're in real pain and need the money, I don't think (assuming you want to stay in the biz) paying taxes on the gain is worth it.  Hence, if you sell, do a 1031.

This agents position is that the request for repair is essentially a new contract and gave the seller an out to accept my more attractive offer.

Above all else - READ WHAT THE CONTRACT SAYS.

I'd see it as a modification request.  If accepted, then the rem of the PSA still stands.  If not accepted (again read the contract) then it's terminated.  I deal with comm PSAs and 99% are written as if you don't waive/accept something the deal dies.  Physical inspection would be one of those contingencies.

There are timelines, so I'd consider it a good offer until the deadline for the contingency passes without a waiver.  Which is why I don't think seller should accept an offer until the other is terminated.

The closest I've had is a seller sending out the same counter to 2 would-be buyers.  Then you get to tracking the delivery times to the second if both buyers accept.

Kinda missing 2 numbers:

Price

Current real NOI

America is waiting!!!

Call your 1031 accommodator.  Put all the proceeds in your QIs account.  Use what you want can for a like-kind exchange and then take out the rem as boot.

Actually, I'm curious if you close this year and take the boot next year, does that show up on next year's taxes as CG?

Let me know on the two above, but contact the QI since almost certain (have had clients do it) you can do a partial 1031 for deferral.  However, the CPA tracking on the CG/Dep deferral may eat all your profits :)

I think you can claim no tax liability for finding the money. Just claim that it is a gift from the prior owner of the house to you.

I'm assuming you're not serious?  Gifts have tax consequences also.  About the worst thing an owner can do is "gift" his kids an apartment tax-wise.