All Forum Posts by: Account Closed

Hey all,

I am acquiring a property with a bit of an issue and I'm not sure how to proceed. This may be a question for an attorney, but I thought I'd address it here for posterity.

The property has been occupied for about 13 years by a life-long friend of the current owner on a handshake agreement, the details of which I'm not sure. I do know that the "tenant" has paid no rent for the past 7 years or so. The "tenant" has made one excuse after another why he can't come up withe it, occasionally coming off of a little here and there, making a repair here and there. Due to their history, the owner hasn't had the heart to put his foot down. But his charity has come to a bitter end. Now wishing to wash his hands of the whole thing, he has offered me the property at a steal -- provided I handle the current occupant. So I will be acquiring a property with a delinquent tenant who has lived there for years with permission, paid very little rent, but made improvements, and who is going to put up one hell of a fight when I show up and inform him the party is over.

The owner has handed me the deed and told me to do whatever I need to do to transfer ownership and then take it from there.

What steps are required to take over this property and evict this person while respecting his rights and protecting myself?

Sweet. Thanks, everyone!

I've been with Geico for years, but recently found out that the company that underwrites their homeowners policies is poorly rated for customer service. Any recommendations for an agent in Indianapolis that deals with rental properties and has a good reputation?

I take no offense at your honest feedback. I'm here asking questions because I want to look after myself. Mama didn't raise no fool. 

However, to view things from his perspective, he is currently spending the majority of his free time working on a property that he has no elucidated stake in. I'd say that's "skin in the game". My issue is how to quantify that contribution vis a vis my own financial contribution and make sure we're both coming out ahead. It's easy to say "get a contractor", but those guys are hard to find, hard to trust, and expensive. I've got someone I trust who is working purely on faith because he believes in what we're doing and trusts that everything will work out in the end. 

One scenario I've considered on this current property, assuming we flip: I recoup my initial investment of the purchase price, inspection, taxes, insurance, rehab costs, etc. then we split the profit 50/50. Is that fair to him, or is he is essentially only "recouping" for his labor and not actually profiting? 

I'm a hippie dippy liberal arts major, folks, so I obviously need someone to tell me how it is. I'm just learning all this. 

I really appreciate all the replies, everyone. 

This is a personal as well as a business relationship, which complicates things and I'm sure has many eyes in this thread rolling! But I trust my partner 100%, which is something I can't say about any contractor I've ever come across and that's worth an awful lot to me.

You've given me some things to think about. 

Apologies if this is in the wrong category. This seems like a fairly common issue, so I'm hoping someone will be able to offer some wisdom. My partner and I are trying to figure out how to equitably and fairly negotiate our respective stakes in the business. So far we wholesaled a house without touching it and are in the process of rehabbing a duplex that we might hold or flip. 

I have access to capital therefore I purchase the properties and finance the rehab (offering some, but relatively little in the way of physical work). My partner provides the labor (and is willing to pitch in some cash, but he doesn't make much and it feels unnecessary and complicated for him to pitch in cash when I have that under control). However, he works a full time job and is only able to rehab my/our property in his spare time. 

Our inability to come to an agreement on how our partnership should be divided has led to a standstill on construction.

Does anyone have experience or advice on how to quantify the contributions of each partner and make sure each gets a fair share?