All Forum Posts by: Andrew Terry

Statute seems pretty clear on our situation however I know in the court process things can change. It is a distressed property and would give plenty left after rehab to turn a profit. I plan to cut bait if litigation continues after the 29th. I’d rather be finding properties I can actually work with rather than sit on my hands waiting on court dates for unknown possibilities 

@Stephen Blake, thanks for the heads up! Hopefully I’ll have answers at the end of this month. I feel I am prepared to discuss the contract fairly. But at the end of the day if it’s fiscally better to let it go I can walk away knowing I made the right decision if need be. 

Thanks @David Navas Rocha, I’m starting to lean that way more. I’m still wading through litigation on the purchase since the passing of the original seller but will hopefully have an answer at the end of this month

My Saga continues…. I figured I would update. Not much has changed. We have gone to court twice now. 

 The first was probate to have her appointed to the estate and so we could file our intent to honor the contract.

     The second got turned into a hearing to set a hearing date (ridiculous I know).
     So currently we are set for May 29th where we should have a hearing and an answer.

Trying to step back into the real estate game has not been everything I hoped it would be yet. I had a rental about 10 years ago that I eventually sold because I didn’t understand the game. Lessons learned education on going I decided to get back into it with a business mind set. So here we are with this on my first. I keep going over how many other potential properties I could have purchased  and had actively bringing cash flow at this point if I’d have let this one go and moved on. Really makes me a bit sick. 
     The numbers continue to make sense on this it’s just now a matter of how long do I allow the litigation to draw out (still acquiring those attorney fees) before just moving on. 
     I’ll be over here in LIMBO until May 29th if anybody wants input on contracts that end up in probate before closing

@Randy Rodenhouse I assumed there wasn’t a way to work around it outside of the 1031 but wasn’t sure if maybe there had been a creative “legitimate” work around. Thanks for the feedback 

Starting out here. Looking at a few properties for the first step into this. Looking for some clarity on the capital gains. I get they reduce after a year but would you avoid cap gains if you put the gains into another property or investment? 

@Sean Winchell, oh no the daughter is trying to raise the price! I’ve had to get some legal opinions on it so I’m not wasting money but the general consensus is the same. State law says the contract is binging it’s just a matter of getting the executor of the estate (the daughter) to sign the documents at closing. Once probate has been opened up I’ll have to petition the courts to get a court order to fulfill the original contract. 

I’m not sure how common these situations are but I figured if I’m having to go through it and learn the process of this situation maybe I can share it and potentially help others 

So here’s my first purchase experience so far. 
On the house.

PP: 40K

Rehab Estimated:40k

ARV: 135k

FMR:1200

Wrote up a contract and got it signed with 30 day closing. Started working with lender and title company getting everything ready for closing. 2 weeks after signing the seller passes away. This has left me to work with the sellers only daughter who is just a real peach! 

I’m confident I’ll prevail without any major added expenses but just a fun way to jump right into real estate 

@Bill B., You're spot on. Yes, I will have no money into this outside of closing cost, and the loan. I get that all the numbers are rough estimates but just to add a cherry to it, the property tax was only $453 last year according to the county. 

I agree though, I'm really leaning towards keeping it as a rental for at least a year or until I need to maybe include it in a 1031 deal. 

Thanks for the numbers and outlook

Thank you @Quinton Booth, it’s definitely a starting point. I’ve always been a hands on learner so trying to figure out how the path to scaling a solid portfolio looks has been difficult without being involved. There’s plenty more for me to learn along the way and I’m looking forward to getting started