All Forum Posts by: Andrew Merritt

@Ken M. not sure if it would count as a scorchin' hot deal or not, but it would be a great BRRR where I'd be able to get most or all of my money out of it and still cashflow a few hundred/month.

I guess I don't know what I don't know here.  I've been told that it will likely take up to a year to get everything settled, and if that's all I'll have to deal with is time then that's fine.  However, if I'm going to have to put up a lot of money for the lawsuit and lawyers, then it's probably not worth it.  

If I'm being honest, part of what is driving my desire to push forward is ego lol. It would be awesome to find a great BRRR property in this area as appreciation is likely going to be huge in the next several years.

@James McGovern yes, title and survey discrepancies would likely need to be done via quiet title action

@JD Martin yes I've seen that before and that's one thing that's keeping me going, but this isn't a case of lines being slightly askew or off by a little, there are whole new plats there that weren't there before - one of which appears to be intersecting the house itself.  That makes me think the lines are off a bit, but it's strange that there's a new plat that popped up at some point.

@Jay Hinrichs @Chris Seveney What would you do in my position then?

- title needs to be cleared, but that seems solvable w/ seller cooperation

- survey needs to be done, but that would likely require cooperation from nearby lot owners

I've got a contractor lined up to rehab this and a tenant lined up, so I don't just want to give up on it but I also want to be realistic.  The first bullet point seems like it's worth continuing w/ a lawsuit but the second makes it seem less realistic.  I can send more specific info about the lots in a DM if requested.

@Chris Seveney The property is owned 50/50 between an LLC that she's in and her late husband, who died >10 years ago. She lives in Florida.

She's filed the ancillary docs in SC (was not done until after closing was supposed to happen) but my attorney said that she'll need to be appointed the PR here in SC locally and do a deed of distribution from Clarence to the heirs.

The property also needs a survey/recorded plat, may need quiet title as the plat that she has was not recorded and doesn't reflect the current tax map on the GIS.  There are several lots on the current GIS map that are not shown on the one that she has and it looks like it will be complicated to get everything resolved.

For what it's worth, my attorney has said that he doesn't think this is going to be fruitful.  

I'd be OK w/ dropping this, but the seller said that she's already working w/ another buyer that didn't find the title issues that my attorney did.  That part of me just doesn't want to give it up just in case it is sellable.  

I have a property under contract in North Charleston and it's got some title and survey issues.  The seller claims that there is nothing wrong w/ the title and that the property is able to be sold.  I've spoken w/ two attorneys and they've said that's not the case.  The seller is actively talking w/ other buyers.

I have a clause in my purchase agreement extending closing for up to a year if there are title issues.  I've put my earnest money down and filed the lis pendens, but have not filed the actual law suit yet.  

I'd like to retain my rights to purchase this property and most importantly, not allow the seller to sell this out from under me.  I've heard of cases where the lawsuit was filed and another buyer contacted the person who filed the lis pendens and they were able to get their interest bought out.  I'd be OK with that too.  

Anything specific I need to do here to achieve that outcome?  Will the lis pendend only last for the year as stated in my contract or would it extend indefinitely since the seller did not perform her part of the contract?

I contacted them to be proactive about it and it just kind of fizzled out - they said they'd look into it and never followed up.  Eventually I refinanced out of it so it wasn't an issue anymore.

I've worked with one a couple of times so far.  They do good work but they're super backed up - 6 weeks just to get on their calendar.  Let me know if you'd like their name and I can get it to you.  They didn't do any renderings for me though.  I found someone on Etsy to do that for me.

@David M. Thank you for the info.  I'm just looking to get the deal done in a way that benefits both of us.  He gave me a price that he'd list it for if it gets that far and told me that he already has a cash offer on the table for less than that.  

Definitely looks like I'm not interested in the wrap loan as it leaves me too exposed if he falls on hard times or something. I'll need to do some more research on subject to - that may be a good route to go. He currently has a very low interest rate (compared to today's rates) which would help me out. He doesn't have a whole lot of equity as he bought it just 16 months ago w/ an FHA loan.

With the bridge loan, that would just be temporary just for the purchase but then I'd use another lender to transition into a long-term loan.  

I had never heard of a wrap around mortgage but from your comment it sounds like it would depend on the current owner continuing to make monthly payments?  I'll need to look into it but if that's the case I wouldn't want to do that.  

This would be a long term hold