All Forum Posts by: Allen B.

I had this happen a few years ago. We had a HUD house under contract for a client. After it was under contract it was vandalized with about $10,000 damage. (the purchase price was 29,000) Hud wouldn't lower price and eventually they demanded earnest money which I had given buyer. So I had to send in $500 out of my pocket or not be able to sell any HUD houses.

Now they make you send the earnest money in with the contract. So essentially if it is an investor deal, then you have to make sure the investor is happy before making the offer.

I once had a bank that stated I must put that in the listing a few years ago and I did and they Board called my Broker and I had to remove that language or pull the listing as it was against MLS rules to not give a co-op to everyone.

The bank had it so overpriced, that I decided to just let them give the listing to someone else and not deal with the hassle.

Welcome to the real estate investing community R. I wish you the best of luck in your endeavors in Phoenix and Canada. Which area of Canada are you located.

I've always wondered about investing in Canada I guess the grass is always greener on the other side of the fence. Of course it's always good to diversify your portfolio.

This may be the best quote but it's hard to say as you don't say where the property is located and/or what the market value is in replacement cost. Generally an individual's insurance policy is going to be lower than a commercial policy on a one house basis.

However it appears you have partners so a company policy may be the best idea. If it was me I would go for the lower cost individual policy until I had over five properties to qualify for a lower group price.

Usually we require three times the rent before taxes. However there are always exceptions. The main exceptions that that we look at are people on fixed incomes from Social Security and or disability. A senior citizen that is retired and gets a Social Security check of 1200 a month and has no other expenses can usually afford a $500 monthly rental as as their other expenses are lower.

However a single parent with a $1200 month income cannot afford $500 month rental. We do accept section 8 vouchers in this also will cause the income ratio amounts to fluctuate as the most important thing is the amount of section 8 voucher.

From the description you have outlined I do not believe this is fraud. The main thing is that the original loan has been refinanced. Since you are not involved in that loan at that time everything from the original purchase should really be wiped out. And really the only thing to be worried about is if this loan doesn't get paid. The authorities are not looking for fraud for loans that have been paid at this point. But if he/she is very concerned then they should always consult an attorney as they're the only ones that can determine whether or not it was legally fraud.

The main problem is that you have is that you have to be licensed as a real estate broker in the state of Georgia to manage real property for others. If you're currently unlicensed, then it will take a couple of years to get your brokers license.

I was in a similar situation in 2004 in Tennessee. What you're going to have to do is find a broker who's willing to be looked at the managing broker for your operation. It is not always easy as there is a lot of liability to the broker and not much income in return.

I can give you some tips if you would like to talk to me sometime in the next week. Just give me a call.

The best way is to find somebody to be a buyers agent for you. I can set up a automatic search that will send any REO's that are listed directly to a buyer's e-mail inbox. This is the best way as a really great deal will be gone within a couple of hours. But for as for me giving a password out when I login there is a $15,000 fine warning from the MLS for sharing passwords.

You need to check with the rules of your MLS. If the house is listed on the MLS and the listing agent is offering a co-brokerage fee then you should be allowed to receive commission. Many banks have a policy of not paying a commission to a buyers agent who is also the buyer but this is in conflict to the MLS rules that I belong. You may want to check with your broker to see what their opinion is as that is the only opinion that matters.

In Tennesse there is a franchise tax of least $300 a year plus another tax you can get out of by filing some forms if the llc is family owned.

Unless someone has real assets of over 1 million, I always advise to just buy some insurance. Due to the tax costs and bookkeeping.

However if your tenants call and say there are sparks shooting out of the wall, don't ignore it and let the house burn down with 5 people dying. That will cause you to lose everything.