All Forum Posts by: Sunday Akin

@James Wise, He said he just got the property few months ago, was completely vacant.... He is a builder... He renovated it.... put tenants in it... I reviewed the current leases with tenants... they all signed leases starting March 2016. He claims he is not interested in buying and holding... I guess he is fixing and flipping...

Thanks @Terry Kavouras... Thanks for sharing your example. Just as you have just analysed.... I did too, and it seems to be a very good deal. But I would love to be as creative as possible and spend the lowest amount out of pocket (being low on cash right now --- just made some purchases). I would love to assume the tax debt, but I had been reading about lien holders in Cuyhoga County who are increasing their interest rates to as much as 18%. I don't know how true this is. My plan was to use the tax debt as a from of financing for me if I can be sure the interest rate would be reasonable. And also make use of his owner financing.
My concerns are exorbitant interest rates by future lien holders may eventually make it a bad deal, except I quickly redeem the situation with cash just like you did in your case. My plan is to back out for now, PM me if you are interested in the deal.

Thanks for the sound advice @Matthew King, I will definitely need the services of a real estate attorney, if I am still interested in the deal.  Looking at the following link for the said property, I saw "Yes" for Cert. Pending but "No" for Cert. Sold, which may actually imply the lien certificate may soon be sold as you said:

http://treasurer.cuyahogacounty.us/payments/real_p...

I will need a legal counsel if at all, I will be moving forward with the deal.

Thanks!!!

@Matt Motil ... It helps... thanks!

Hello there,

I need the advice of those who are well experienced, especially with Cleveland, Ohio properties:

I am currently doing my due diligence on a deal of 4-Unit Brick Apartment Building that brings in roughly $2000 a month. It was recently renovated and fully occupied with tenants. It looked like a good deal until I found out that there is roughly $20,000 back taxes owed on the property. The owner is willing to do owner financing and this reduces the out-of-pocket expenses that would be necessary for the transaction. The seller seems motivated and I am planning to come up with a deal that I think he may accept.
The owner said he is on a monthly payment plan of about $280/month for the back taxes, and he wants a buyer that will assume that and pay him $25000 cash OR someone who will pay $20,000 cash (to clear the delinquent taxes) as down payment while he will finance the rest.
I like to know the risks associated with inheriting back taxes on a property from a seller. With $280 per month, it sounds like a good way of financing my deal, and still have enough cash flow. My concerns are the possibility of foreclosure in future by any kind of unforeseen government or city regulations OR exorbitant interest rate charges.

A good option I have thought about is offering him $5000 cash, take over the back taxes debt and have a monthly payment plan as well, and let him owner-finance the rest for three years.

I will appreciate comments and advice from the more experienced ones.

Thanks!!!

Thanks @Rich Johnson for the info...

@Rich Johnson ...Good info right there... I am planning to refinance a SFR too very soon...I have some questions for you:

Did you tell Huntington Bank that your SFR was an investment property, and they agreed? Did they do appraisal? Is there a length of time the residence must have been owned?

Thanks!

@Scott England

I would also appreciate if I can get a referral to someone who will help with financing LLC that is looking to buy fully rehabbed and rented SFR's and multifamily apartments.

Thanks !!

Thanks a lot @Darren Eady... I will be glad to speak with you over the phone.

Thanks @Darren Eady,

I actually have a little more than $20,000 cash right now. But I am just wondering how many properties you bought that eventually started generating $10k per month. My guess will be at least 20 properties. How long did it take you to reach this goal, especially when using 30% cash with traditional financing? Please shed more light... your story is really inspiring.

Thanks!