All Forum Posts by: Orlo Flock

Okay,  thanks for all of your concerns.  And noted.  

@ Jeff Sheraton:  Yes the deal makes sense.  At the terms I'm buying in my market, this deal makes sense all day long. The only liability I would need to pay would be Taxes and Insurance, thus this post's origin, but I'm working on a solution to that. I'm buying the property (but in another context, I'm really taking a loan at a really great interest rate) and will be exchanging, at my convenience, the collateral to another property that has the equity and cashflow to support it.  And when she passes on, the deal only sweetens.  

@ Perry Ivy and Dawn Anastasi:  If she lives to be 120 years old I hope to become famous as the landlord of the newest Guinness Book of World Records oldest person!  ;)  Thanks for the interesting article though. But in all honesty I believe she called me because she is worried about her health as is.  

If she does live that long I am purchasing and owning a house today at little out of pocket at today's market cost.  If I take possession of the property in 40 years the underlying lot alone will most likely be worth more that the house today.  I'll take the risk.  I'm happily married and am not a polygamist.  If I move to Mars permanently, I'll either sell the house (and tenant contract) to some young buck or put it in a will to my children whom I hope will outlive the 91 year old woman.  I'll also come back to this forum to make sure you get the props for calling it....  if I get a wifi signal on Mars....

I think I've answered all the questions and possibly double-octo-genarian questions,  can anyone answer my questions?

Do Later Now,

       Orlo Flock

I've recently come across a seller (a 91yo lady) who wants to sell her house with seller financing, interest only, with at least a 10 year balloon here in Oregon with approximately  $10k down.  All fine and dandy.  The clincher: She wants to "rent back" the house (with the rent amount being equal to the financing cost) until she passes on. At that point the 10 year clock would start ticking and the payments would go to her heirs.   I'm okay with it but:

1) is there a better way ,tenants in common maybe, that have us split taxes, insurance, etc., till she passes.  In case she finds the fountain of youth of a sudden.

2) is that legal?

3) is it possible for her to not be my tenant per se.  (I.E. a clause that I don't pay for any repairs or maintenance under $400 or better yet relieves  me in  total from being her landlord)

4) any other consideration I should take?

I don't  want an option: she could stop paying insurance and  taxes or get liens, etc. and I'd possibly lose the asset and my option $.

Thank you for your go headedness!

    -O

+1 for secret  sauce purty please.  @ jay h.

Thanks for all of the help everyone!  In the end,after some research,sifting through reviews and the track records and tediously reviewing contracts, I ended up going with Turner Property  Management.  They seem to be right up my alley, I like their contracts, people skills, and flexibility.  If anything changes and/or inordinately good or bad things happen with them I'll be sure to post it here.  

Thanks again!

Thanks  Kyle!

Awesome!  Thanks for the fast responses.

Further: @Brandon Turner and Josh Dorkin.  Have you guys thought of having a local real estate oriented  services (plumbers, inspectors, etc.) list (like angies-list) that can only be endorsed/rated/reviewed by BP members?  Just a thought.

I’ve been looking for a great property management company here in Portland and cannot seem to find one that doesn’t have someone saying bad things about them. I realize that this may be par for the course in the industry but was wondering if anyone had a go-to company without complaints at least from you all.

Please don't endorse yourself.

Cheers!,

Orlo Alva Flock

If you're still looking,  I've worked with Bob Harrington at Lee Davies Real estate for the past few years.  Bob doesn't specifically work with investors but has been great with me.  He is also the kind of guy that has your best interests at heart.  Half of the deals I walk away from are due to him finding flaws in the structure or contracts.  

Sounds to me like a classic wholesale that's already been set up for you!  $100k property for $60k (60%)? Awesome!  Talk with your dad and lower that price to take repair cost into account.  Get it under contract. Then before you close with your dad, sell the for $70k (70%) minus repairs needed to an experienced flipper that was in one of those networking groups you spoke of or here on BP.   If no one buys it, its just because you haven't talked to the right person (or there is something we don't know.) Search BP on how to wholesale.  The risk is minimal to you.  Its a great deal for you, for your dad, and for the flipper.  Win-Win-Win! Take that $10k and reinvest it in your next deal.  Or better yet, lower your fee a bit, and ask whichever flipper you find to mentor you on how to spend that money.  Your other options seem like albatrosses.  While they may be possible, without the right knowledge they may end up costing you in the long run.