All Forum Posts by: Michael C.

Good for you - Analyzing the deal. So how would you finance a deal like this, down payment, loan amount, terms? What is the lease situation? Month to month or active leases? What about competition in the market for similar properties? Absorption rate. What is the quality of income, Paying on time? What about deferred maintenance? Windows, heating, etc. What about tax implications of this & depreciation? What kind of upside potential? If you had to sell it the next day, could you?

Sean... you signed the contract, but did you close escrow yet? If, not, please read the purchase contract and find the clause that requires the seller to notify you of any changes to tenants contract during escrow period.

Also, Find the clause about seller required disclosures prior to closing.

possible script:

"Hello, my name is Derek, I have recently got into real estate and am currently locating properties for investor to flip contracts to after I get them in to contract. Do you know anyone that might be interested in receiving contract assignments?"

good luck!

Please check with the title company about splitting lots and insurability of the parcels. A formal lot split may entail getting approval from the zoning department of the city/county where the property is located and (may) also require public notice to neighbors.

Items of issue are parcel size after the split, boundaries & ratio of of the structure with regards to property lines, parking, utility location, accessibility to the lot (not land locked).

Non lawyer response. yes you have to honor the lease. Also you should receive or give an assignment of lease. depending if you are selling or buying. In addition maybe a tenant estoppel from each tenant.