All Forum Posts by: Blake Willis

Originally posted by @Brent Coombs:

@Blake Willis, for your information: "county tax assessment website" = "next to useless for practical purposes".

Seeing as you're asking for advice, and getting it, are you going to TAKE any of it?

Well that’s why I’m here. No matter how close I am with somebody, when there’s money involved I’ve seen how people act. Friends, family, or strangers. Basically I should talk to a real estate attorney, City planner, get an appraisal, and not worry about the IRS or any red flags when depositing 60k into an account like it’s nothing.

Originally posted by @Brent Coombs:

@Blake Willis, I'm sorry, but "they will take the cash and give me the deed" sounds EXACTLY what a scammer would tell you. I'm not saying they are - but what if THEY were duped by the Seller who "sold" to them?

eg. What TYPE of Deed? eg. A Quitclaim Deed can be USELESS! Use a Real Estate Attorney! (Not of the seller's choosing). 

My other concern is: Why such PRECISE "The building is worth 82 and the total value with the land is 147" figures?

ie. In reality, it's only worth: what someone PAYS for it! (And even then, maybe it's NOT!) Take care out there...

 I know your just looking out, but they have owned this Building since 1990. They just put a roof on it s few years ago. Yes everything else needs work inside and they are going to do that which is why they only asked for the same price they paid for it long ago. Like I’ve stated before, they aren’t asking for my cash, that’s all I have and would like to use it if it wasn’t going to raise any red flags. That’s why I suggested getting a mortgage and paying them in cash for the work which I just ran by them this week and they are going to get back to me. And once again those numbers are from the PA county tax assessment website. To be even more precise I just lifted this from the site for 2017 full base market value 

Land Value	$65,400	Land Value
Building Value	$82,000	Building Value
Total Value	$147,400

Originally posted by @Guy Yoes:

If cash is an issue, there are ways to handle that legally. If not an issue, pay with cash. It might be prudent, however,to meet with a real-estate attorney to review the contract(s). Small expense to make sure you are getting what the verbal agreement stated.  

There’s no issue with any agreement or anything like that. The only issue in this whole deal is my 60k raising any type of red flags and the best way to go about paying them. Like I said they will take the cash and give me the deed no problem and they will be fine on their end. they were just worried about me and looking out. If you read anything above you’ll know I’ve said They think I will be fine but you just never know when an audit may come, and like I said my account think it’s fine too but I just came here for advice ( advice not from people taking my money no matter how close we are) on the best and safest way to get them this literal cash without any issues on my end. 

PS I appreciate all the feedback from everyone. First time on here and I’ll stay coming back for more advice in the future if I need it. 

Originally posted by @Guy Yoes:

Personally, I like cash. ;-} It might be a problem for the "Friends" company as well. IF you have time, you can split the deposits into 2 different accounts (checking and Savings) at 3 different banks. Make deposits of $5k over several weeks then move them over to 1 account. Then you can write a check for the house (easier for both parties) Should not have any issues (red flags). My other business does 95% cash (no, it's not drugs)  and by using different banks, I have a great relationship with several different bankers.

Another option is the put down 10% and finance (about $1300K) Use the cash to pay the company for rehab and make your payments. When you are done with the rehab, you can REFI and pull the equity back out. Now you can look for another property.  Good Luck!

Their company has no problem with taking the 60k and giving me the deed. They were just looking out for me on my end since it’s a saved money and not exactly showing A source. So doing what your saying will not get flagged for any type of structuring? Or is that just multiple deposits from one bank?  

Originally posted by @Brent Coombs:

@Blake Willis, "It’s just the thought of losing my money I saved forever that scares me" sounds like a very good excuse to me for you to have been "hiding" your savings. But now, it's time to get real, right?

I suppose huh? Well over on reddit in the real estate section, pretty much everyone said “nooo do not do this deal because of the risk, irs, etc. Then one of those people sent me here and I’m kind of getting the opposite response so it’s like ahhhh lol

Originally posted by @Brent Coombs:

@Blake Willis, sometimes, "issues" won't be as bad as you might think. You could ASK them "what if", right?

True but they will 100 percent have to report it. Like I said, my accountant says this will prob go unnoticed just for the fact 60k isn’t much to them in the big picture, and it’s not like I’m using this property to make money from it. It’s just to live. Also for the fact that I’ve been a Normal on the books working citizen forever and have all the w-2’s. My first car payment started in 2011 and I’ve been at my job since 2005 or so and still there all while living at home with no major bills besides the car and credit cards. It’s just the thought of losing my money I saved forever that scares me. 

I would think after 10k that becomes an issue ha. I’ve been a regular citizen for years who just saved side money his whole life. Yes I would love to put it into a house of my own but was concerned about being hassled about it since it’s just a chunk of money out of “nowhere” to them 

That is cash I have saved is what I’m Afraid may look suspect from a far because it’s never been banked. I saved it. I Have money that’s been in the bank forever and that’s the 16k that would be needed for a mortgage down payment/closing cost when they need everything sourced. I’m asking for the best way to go about this deal. Sorry if confused. Long story short, I’d rather just buy the place out right with a cash deal with no bank. then fix it up through a bank with a HELOC, but I was asking for advice on the best way to do that or if getting a mortgage with my bank money (16k) is better and just paying the construction company cash for supplies and labor to fix up.

Any banks I’ve talked to from people I know that work there or have gotten HELOCs said it takes about a month but mortgages take a little longer sometimes. I’ve never had any of that. I got personal loans and a new car payment and those obviously only took like a week to get done. I know this is a much bigger situation

From any meetings I’ve had with the company they said everything is fine as far as no need for zoning, permits, etc. that has nothing to do with it. They only thing I needed advice on was about how to pay for the place when I can just buy it outright but if you see my first post all my money saved up doesn’t look legit from a far. I don’t have that much in my account. Including CD’s, savings, and a LOC with another bank I could prob round up 15-16K. That’s why I was asking if me buying from them directly is going to cause a reg flag or does me getting a mortgage for 60k and paying them for the work in cash sound better? We were just trying to avoid closing fees and all that when I’m able to just do a cash buy so they suggested that, but they didn’t realize it was literal cash at the time. They and my account said it should be fine and very slim that something happens just because I don’t really pay any bills and had w2’s and the same job for over ten years, but I was just branching out to get advice from others and stumbled upon this site.