All Forum Posts by: Bob Baldwin

I am curious because I have never been down this road before . I spoke with a friend who had mentioned that someone we knew but had not seen in several years was busted for drug dealing apparently he was over the limit that turns it into a felony ? He could not post bail and is in County detention pending the Trial . 

My friend and I got to talking about Possibly Visiting the detention center and making him an offer on the house . While discussing this oppurtunity we decided to take his sister who is a Para - Legal to the county courthouse . She was able to determine the House had NO mortgage , NO liens etc; and taxes are current .

My biggest question is while in detention is he ABLE to conduct any transactions before the trial ?

Has anyone run into a senerio like this before ? 

He has asked for a Public Defender Do we need to go through him ?

Comps show 3 BR 2 Bath 2 car garage as  & 235 K

How would you get access to the house ?

If we do get access I am thinking that we should get a  Police drug dog to go through the house with us . Does that make sense ?

Also  if the deal comes to fruition WHAT happens to the personal Possessions ?

Iris : Absolutely I will Document everything moving forward . My mother up to this p

oint has lived a modes life since my father and another sister who was living with my mother passed away . One sister whose husband is in the last stages of Muscular Dystrophy I have helped over the years Property Taxes . Unexpected Emergencies just so they could stay in their home . The other sister is a retired Corporate Tax Attorney that taught Corp Law at Yale when she did retire and now lives in a YURT  in Northern Vermont " GO FIGURE " !!!

    I had both Bathrooms re-done in my mothers condo yes I did split the cost with her trust account . Put all monthly expenditures on Automatic Electronic Payments etc; Am I trying to TOOT my own horn absolutely NOT 

  Like you I DON"t want to be re-imbursed for anything . I just want to do what I percieve to be the RIGHT thing to do when she was of sound mind . I have no problem as I said cutting a check to them and be done with it or buying the condo from my mother Full Retail " Never thought I would do that again " LOL " !!! and letting my mother " GIFT " the 2 sisters what ever amount is Legal to do , though I think they may come out on the short end of the stick doing it that way .

I have no problem with any nursing home being paid for their services rendered ,just hate seeing any of her money going to the govt if it can be avoided

Bryan :

           You are correct about spending the assets down to $2K 

           I actually called my Attorney for closings this morning in Ky. to review her assets . He also suggested that I contact an Elder Care Attorney in Ky . to discuss the matter . The problem with attorneys is like Doctors they all have their Specialties . My attorney Mike also is a very good friend of mine so I said Mike " Can you do some Research on this for me as it would apply to Ky. law ? Make a few calls to get me started in the right direction to make a final decision .? So I asked 2 questions : How long to Research it ? About an hour . What are your hourly rates now ? So I just sent him out a check for 2 hours of his time .. Not that I like giving money away but I just don't have time to SHOP for the better Elder Care Attorneys . After all we have to have Trust in our Attorneys for their consultation and advice .

What is it ? Where should it be used ? See below for the reasoning 

The Details :

My mother lives in Florida . The wife and I* have moved in with her as her care givers But she has severe Alsheimer / Dementia  Stage 5 showing signs of stage 6 . Assisted living is NOT going to work for her . Based on her Primary Carhe other e , Neurologists and Geriatric Doctors doctors are saying skilled nursing or convalesant home

Of course at this stage of life we all want the BEST for our parents . Looking around at options Skilled nursing homes that address these issues is about $7,000.00 - $8,000.00 per month . Being outvoted by my 2 sisters . They want : Sell the condo " AS IS " Put the proceeds in a Trust until her passing and then Probate the Estate . Additionally use up her savings Rehabing the place the put mom on Medicaid . That is something that I Personally have issues with .

ARV : Comps in Excellent shape $ 125,000.00

As is at 70% below comps $ 85,000.00 ?

Realistic Repair cost : $15,000.00

Although I have Power of Attorney , I am NOT looking to receive any of the proceeds when the estate does get settled . I really have no experience or knowledge of Lady Bird Deeds Any help please ?

Hard questions to decide when the shoe is on the "Other Foot "

The other question to ask is : Do I look for a home in Florida ? or move her to to a facility in Kentucky where I will be going back to .When all is said and done . Family there on a regular basis can visit with her there . The downside to that is there MAY be a NEED to secure above mentioned Specialty Doctors and then trying to consult an Elder Care Attorney in that State 

OR :

Make an offer to my sisters say $120,000.00 for their share of the Condo . Send them each a check for $60,000.00 each then take it out of a Lady Bird trust and sell it ? I guess you would call that a Self Flip !!??

Any advice would be Appreciated

Thanks 

Bob Baldwin

Micheal : I bought it for 501 K knowing that " The Town Officials Mandated EPA compliance was needed "  I put 45 K into doing that  Cheaper than I was planning !! At that time my mother had a stroke and Dementia getting worse . I put the project on hold and went down to  Clearwater Florida / . While there about 2 weeks I got a  email from a local developer who had heard about the transaction . We exchanged contact info ,he looked the place over with his partner and a week later called me back with an offer .

               I settled at 701K  Plus had them write me out a seperate check splitting the cost of the EPA compliance document .
               I guess you would call this a Commercial Wholesale Deal !!

Jay: As relates to your question of Hard woods or Soft woods , MY opinion is it is a pretty good mix . In what I call the BIG NORTH WOODS  which is millions of acres and quite literally owned / controlled  by a consortium of paper companies . Old practices use to be that said companies use to go in and literally Clear Cut select areas both hard and soft woods . Today it appears that said companies are leaning more in the direction of SELECT cutting .  From a sportsman point of view their seems to be some restrictions about the soft woods  " FIR TREES " as traditional they had been used as wintering yards for deer and moose . With many of the northern mills closing down I am not sure IF that will change any of the regulations or not .

      Some of the paper companies are no longer in business . Thousands of acres have changed hands to Foreign investors and I am led to believe Hedge funds .? No one I have talked to has really got a grip on WHICH direction the lands are heading . I would NOT have a problem IF they turned it in to a National Forest but NOT a National Park as that incurs too many restrictions .

Amy : There are a few people that I am aware of that have done the woodlot deal from an investment stragedy Though I think that they may NOT be buying the property outright  but buying /leasing the timber rights on said property . I can put you in touch with a real estate broker in Lincoln whose son is doing that . Just another type of commodities to invest in . But admittedly I  do not know how that GAME  is played .

         On another note I made a few calls over to ajacent towns a saw mill that had been making dimensional lumber " 2x4's 2x6's still has not recovered from the real estate bust of 8-9 years ago still at only about 50% of production capacity . The best part of that deal is their willingness to sell on a "Cash Basis " Wholesale prices all the material wood wise I need to build my house 

       Yesterday I was re-affirmed the VALUE of references trying to move forward with this endeavor . I had called a few other RE Brokers , Banks and Trades people to get some leads on Builders , Lawyers , Civil engineers , Plumbers , electricians etc . While some would NOT give specific recomondations it did surprise me that each type service a few people were singled  out as the best of the best . The other point was most of the towns are somewhat run on a part time basis . But I am sure these will pan out for me .

     The biggest downfall my son mentioned to me was that " GEEZ DAD !! You do realize that YOU meaning HIM will NEED the Following : A new pick-up truck preferably a Ford F-250 4 door with 4 WD , , 2 snowmobiles , 2 ATV's , A Mule ATV , of course a new trailer to haul them around in , A couple of chain saws and don't forget a new BASS boat . Then of course you will need an over sized 4 car garage and workshop to keep all the toys in ."He is a good kid but I am wondering if he is thinking about HIS FUTURE or MINE !!! LOL I actually had him price these things out NEW of COURSE !! " YOU should be able to cover the toys cost for about 135 K plus Tax , Tags , and Registration . !!! Some Kid !!!  " OH I almost forgot a couple of Old Town canoes Just in case we decide to do a trip down the Allagash .!! My response back to him was Let me call Dave Ramsey and get his opinion on that LOL. 

   I love him to death and even after putting him through trade school and fronting him "GIFTING HIM" the down payment for his own house when he has tried to pay me back I have refused to take the money telling him take your cash pay down your mortgage , ad to your retirement and start funding the grandkids future . This I believe may be opposite to what many on BP would have done with available cash but that is the way I am .

  SO I guess the big question I have to ask is : IF life is good , Kids and Grandkids have a Good  start in life and you choose to live below your income level , Would you suggest putting more into their trust funds for Future generations to have a step ahead in life or is that each generations decision to make as far as passing down the liquidity .? I don't have to but am actually considering selling a tri-plex that I really just don't care for anymore to cover the cost of the toys . My biggest concern is I don't want any new mortgages , NOR incurring any new monthly payment oblibations .

Steve: Will there be seasonal Demand  YES I would say from Snowbirds . Some camps/ homes in the area are on Recreational Waters . Mostly owned by Southern Mainers plus a few M******** !!! LOL that is an inside joke from the year round residents 

          As far as Overflow from more expensive neighboring markets I would have to say NO . It really boils down to age group , single , family still of working age .retirees etc;

Sean : You are partially correct My intention is to make it my Primary Residence NOT seasonal residence . I will grant you that we all have our wants and desires to what we WANT out of life . Sure Some I suppose would go for a Tesla , Ferrari , Lambo etc; or retire to Florida Buy a condo and a Cabo fishing yacht and be happy I guess I have other desires . What is making me go in this direction is age , I will be 70 this year . My son is 10 years out from retirement and still continues to vacation with me up in Maine . Upon his retirement he plans on moving up to the same area Is there a market for such a property YES though typically the times listed on the MLS are usually 200-250 days on the market before sale is made

I have been playing the Real Estate GAME for 45 years Am I happy YES could I have done much better CERTAINLY !! Between my investments ,my kids investments and utilizing various LLC's and TRUSTS My mind is at peace .All the grand kids and even great grand kid colleges are paid for . Was it a Gift YES . Could the $$$'s have been used for other investments OF COURSE . Will the kids be better off facing life without student debt loans ? I think so actually quite sure .!! reguardless of their career paths

        Sean I do get your point about the Old Town Orono area  But that area is just not for me . I,m more comfortable in the Brownville , Sebec or the thriving metropolis of Seboeis total population about 25 !!! Absolutely NO desire to be near Millinocket . As far as the " National Park " aspect goes there does seem to be a mindset of the people living north of Bangor that it just is not going to happen for the Enviro Wacko"s People living there are just fine the way things are at present . State and Federal funding being the primary reason .Yes something needs to be done to try to give some economic infusion to the northern counties but no one seems to have any answers in the past 25 years .

     I have been to Grand Lake Stream area before . nice area but I still get drawn back to the Brownville area . My issue with the Moosehead lake area for the interest my son and I have is that area tends to be more Pricey . . Heck if we want to fish that lake no problem it is about 1 hour plus drive ,Same could be said for the Grand Lake Stream area though maybe a little longer drive .

  Presently negotiating for a 65 acre piece with a stream on it which on a paved road with power for 100K SUBJECT to LURC approval for a building lot  and a engineers rendering for a septic system .. Backside of property backs up to Paper company property. To keep the hard cost down somewhat I DO plan on doing some Serious negotiating as far as supplies and labor goes .Not that I am a cheapola but there are bargains around if you shop hard enough .

I am considering buying and investing in Northern Maine ,North of Bangor Howland , Milo , Brownville area . Some people do in fact commute 50 + miles to Bangor . Most of the towns areunder 25,000 in population with many houses listed at 40-60 K 2-3 BR. Definately NOT a warzone but the economy is quite Bad . Lots of seniors on fixed incomes . yet there it is also considered to be a big recreational area Hunting , Fishing , Snowmobiling etc; 

I will actually be buying some acreage and building a  house in a very rural setting . on average land is about 5K per acre if Power is available . About 1/2 if it has to be brought in . Close to water but NOT on it . Don't mind traveling to enjoy my outdoor activities .

Your thoughts please on Potential investment Please ?

Planning on Building 4 Br 3 bath 1800-20000 SQ Ft Ranch house for when family andfriends come to visit . Looking at total cost 185-200 K Prefer to pay cash !! I KNOW !! I KNOW !!! you can invest a lot with the 200K . Satisfied with my investments up to this point . Though it would be hard to turn down a great deal if one were to be found .  Net Net income would still be in the 100K before any properties are liquidated . As I said I started my investments a long time ago which the kids will end up with . At what point do you say Enough is Enough and pursue your retirement Dreams ?

I am always on the lookout for various Business Oppurtunities through the purchase of Real Estate .. I am presently in Fla. due to my mothers illness . It appears that the condo complex she is in has recently divested itself of the Golf Course and Marina . They electing not to put needed funds into the golf course and  Marina . Originally these were amendities to the purchasers of the of the condo's .

One year latter and the marina is almost at capacity and the PGA golf course has doubled its membership to non resident golfers . This I attribute to basic marketing and value to those that either boat of golf . 

Do any members of BP see this trend happening in other areas ?

If YES , How did you come across these deals ?

Any other BP members come across unusual ways to increase business oppurtunites from the purchase of Real Estate ?