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Is everyone ready to hear my crazy deal of a lifetime?
Closing in four days sends up a huge red flag, but its possible it was related to the seller and had nothing to do with the property. Any closing I've conducted where my client was forced to purchase under the gun, there was a serious underlying issue.
what's your plan for the property?
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#3 All Forums Contributor
- Lender
- Lake Oswego OR Summerlin, NV
Originally posted by @Bob Floss II:Closing in four days sends up a huge red flag, but its possible it was related to the seller and had nothing to do with the property. Any closing I've conducted where my client was forced to purchase under the gun, there was a serious underlying issue.
when buying pre foreclosure rescue lease backs were legal in Oregon and Washinton that was our specialty.. and we did many a closing within 24 hours of the sale.. of course we did it ourselves.. being a non attorney state we could simply draft our own deeds get the seller to come to my title company simply for a notary.. then run it over the court house and record.. hand them a check for whatever equity we negotiated.. then courier a cashier check up to seattle to the big foreclosure mills and bring the loan current.. did hundreds of those. and yes it was hair on fire.. WE would get a date down on the phone from our title plant.. of course not a full title report.. but frankly out west we dont run into the same issues.. there are not all these utls liens etc. there can be code violations but we usually negotiate those after the fact..
Now i dont recommend this style of transaction for those with limited capital if gave a seller 10k and then 30k to bring him current and we lost the whole amount that would just be the cost of doing business.. but for someone else that could be devastating..
But in our market Oregon Washington if you wanted the best deals on distressed assets it happened within 48 hours of the actual sale.
We never even contacted the people until 5 days before the trustees sale.. this is what i LOVE about real estate in the US it is so darn market specific ..
I remember i had a home in OH some suburb south of Chicago.. and I wanted to handle my own escrow.. so i just call the title company to open and order and they tell me i cant you have to be an attorney. they put me in my place.. i said i don't need an attorney for a vanilla sale of a SFR that i paid cash for and got title insurance 6 months earlier. Nope had to hire an attorney..
How did you find this deal?
Did he open probate? Is he selling his father's estate by himself or through an attorney or through probate? Seems if he is doing it outside probate there could be major issues.
If you saw the will it may not be the real one or it may be an older one or it may be a contested one or it may be imaginary or he might not even be the son of the deceased person. That is why there is a process that real property goes through probate. How do you know he is not a scammer who saw the death notice in the paper and got keys to the house and made this situation up? How do you know he had the authority to sell the house or who he is? Some scammers are pretty smart and likable.
Did the state have a medical claim on the house that is not recorded yet? Or any other claims on the estate that were not notified because there is no probate process yet?
Lots of people with druggie / alcoholic kids give their estate to a non-profit or put restrictions on the person inheriting.
And him not wanting the 'family' to know means that there may be restrictions to him inheriting, otherwise why would the 'family' care? Or maybe the family is contesting or questioning the will. Or maybe he is a scammer and needs to move quickly before the real family gets wind on this.
You can record anything, it does not mean the person selling had the right to sell. And anyone can show a house. Even someone who broke in and changed the locks.
When my aunt passed away within 40 days her house was broken into 4 separate times and we had to change the locks 3 times. We could not keep the thieves and scammers out! So someone showing you the house does not really mean anything about their legal claim to being able to sell it either.
Now if the person is a person you know, it may be different, but not buying a deceased person's assets through probate is a big red flag.
I'd also like to know where/how you found this deal? Fingers crossed that it's actually an amazing deal like you thought and not a scam at all! Good luck
@Charlie MacPherson Key words being no one in their "right mind" would do that. If he doesn't want his family knowing he's selling then it sounds like he most likely does have some hidden demons. He was going to sell it anyways so glad it went to someone who knows what to do with it , hopefully! Congrats!!!
Originally posted by @Joshua D.:
So seriously landed a deal that blows everyone of my other deals out. Me and my wife have been ecstatic and my father in law who is a big business man in the area cant believe it. Thanking god every day for my blessings already and needed a little help financially and really has helped me out. So here it is point blank bought a beautiful 3 bed/2.5 bath house in a remarkable development built in 2006. Ready for the numbers? Maybe its me that thinks it’s unbelievable but i even have to tell my realtor i purchased it for 150k and he said absolutely grand slam. Anyways heres the the real numbers. Purchase price =80k out the door needs nothing Market value=250k Sold for 240k back in 2006 I gave the seller exactly what he wanted with his asking price. I almost feel i didnt do the right thing still? Any other deals out there like that?
It happens. My father was buying and selling real estate in Galveston county. A lady called and said she wanted him to buy her house. She got his name from a friend. He went out and looked at the property and asked how much she wanted. She said she wanted the same thing she paid for it in 1958. She was going to assisted living and wanted some running around money. She had no kids or family. He told her the house was worth much more than the 1958 but she refused.
Purchase price was 15,000. It was worth 90,000. Clear title and no liens on it for decades. You just see what people want and give them that. She wanted a very quick sale and he gave her that. After hurricane Ike my parents moved into the house as theirs was destroyed and still live there as its ground level and not elevated. Easier to get in and out of.
Hey Joshua,
I've actually had a very similar deal. I hand write letters to homes owned by snowbirds down here in FL. I was able to purchase a 2/1 from an elderly couple who were full time snowbirds for $30k. The home was worth $110k. The inherited it, rarely used or maintained it, and just didn't seem to care much about it. I spent $10k in rehab along with some TLC, and have been renting it out for $1k/month now for the past year. It's worth $150-160k today. Cheers!
Thanks everyone for the responses. Thanking god for everything he has blessed me with. I believe alot of Karma stuff is coming back to be in full swing. Im about to post pictures of property. As far as marketing strategies that i use for finding deals. I use all of them haha you name it i do it
Also My plan is to Rent it as of now try and get high money for it. Would love to get $2500 out of it a month will see though im thinking maybe $2000 will see.
I know it's hard to believe but deals like this are out there. Sounds like you have clean title and did everything above the board. Definitely get title insurance if you don't have it already. People end up in very difficult/odd situations and their thinking can be drastically different than how we see it here. Congratulations!
Have you had it inspected, @Joshua D. ? I would want peace of mind that it's all fine, even after the fact. Such a discounted price allows for a lot of problems and still make money.
As other have said I would be looking for protection on the property for so sure. Small price to pay when the margins look that good. Great job landing the deal and seeing it through @Joshua D.
