All Forum Posts by: Derek W.

Update: seller called me today and wants to sell house for $5,000 if I'm willing to buy with knowledge of all problems and solve them myself. Ooh, it will be so fun to try to sort this all out, I'm tempted. Just wish there was some decent money on the other end...

I'm going to call the note holder tomorrow and see what his spin is. I'll post that response. 

I've always offered the entire purchase price as EMD. I win a lot of multiple offer tie breakers that way. But I've never had one take over 30 days to close. There must be specific complications in your area that is extending the close time.

It's getting more interesting now. The note holder is a guy that is holding paper on another house I own. So it turns out I know him pretty well.  But attorney told me she forbids me from going around her and talking to him direct. Red flag red flag! You and Rick are correct that it's a pos property and not worth the time, but my curiosity and love of real estate detective work is having a hard time dropping it. I'm dying to contact loan holder, but don't want to cross attorney and make this a problem for me. 

It sounds like you may be stepping over dollars to pick up pennies...

Lancaster/Palmdale is even closer.  Don't need the grapevine for that area!  (Very clever comment @Matt R. )

Have you thought about putting the priority with a good local property manager?  Then you never have to be on call, and a good manager will have a repair crew that charge fair rates. 

Love the idea of attorney buying it! I'm not sure if there was paper work on the note. I believe there was but will call note holder tomorrow and see.  There was no deed or any paper work (quit claim, deed in lieu) back to note holder, so seller is still on title. My play was to buy note at discount from note holder, then buy property for amount of attorney fees and get grant deed. Then sell to tenant who thinks he's buying it anyway and carry back paper. If I can be all in at less than 20k and sell legitimately to tenant, I think everyone wins. 

Ahhh.  There's the voice of knowledge and reason I was seeking. Thank you for chiming in. Yes, the attorney is seriously trying to pursued me to buy it as if it were free and clear. The numbers and facts: note carry back for $40k still has approx $35k owed. Property worth $40-45k in present condition. Owner has not paid on note for 3 years. Note holder "took back" property (verbal only, no deed of any kind or anything signed) and has now done a lease option to tenant, although as note holder, not owner, he can't legally do that. Note holder has been collecting rent money for over a year from tenant. Everyone is still alive. Owners are divorcing and divorce attorney wants to get paid through quick sale of the house. I was brought in as a potential buyer to try to sort the mess out. I have contact info for note holder and want to call him to see if I can work something out with him. I can't buy the note from him as he has nothing recorded. I'm trying to brainstorm my best play before calling him. Seller says they never signed anything with him. It was all verbal. I've yet to confirm this with note holder. Also nothing was signed with tenant toward lease option, this is verbal as well. 

With all due respect, I'm so tired of the reply on this site to "talk to an attorney."  I'll call my attorney when I need legal advice. I post on this forum when I need outside the box thinking. What I'm looking for here is multiple ways and plays to creatively approach a problem. There are many brilliant minds with a wealth of knowledge on this site. ( And @Wayne Brooks you're one of them) I'll take it upon myself to figure out the legality of each suggestion. Stepping off soap box now...

@Wayne Brooks you are correct.  That was my thinking. And I wasn't criticizing your reply, I'm trying to learn. I guess my big question is: do I try to negotiate on the front end before purchasing or the back end after buying. I am not certainly what legality is in this manner and how strong a position he has without a recorded note. Is it different to buy as a bonified purchaser if I had no knowledge, and learn after the sale, or does it matter if I had pre knowledge and bought any way? I have a lawyer nudging me one way, but she is not representing me and doesn't have my interest at stake. She just wants her fees paid and sees a quick sale as a way to get paid.