All Forum Posts by: Brad Sanford

I'm familiar with Oxford Anniston, and most of the area in those counties.

Where is your property located?

brad

Trina P.

I have used American Strategic, out of Tampa, for my rental properties in Alabama.  Although I have not had a claim, their rates have been favorable for me.   I can get you my agents info if you are interested.  Where is your property in Alabama?

@Sybil Troullier.   Zurich has a builders risk policy that might be useful if you are  in the process of renovating your vacant property.  These are usually 6 month policies,

Welcome.

Your probably right on the condos of the Gulf Coast. I have owned a few over the years, and was involved in the late 80's and 90's when there was a lot of money to be made. (Mostly if you were a developer. But from an individual investment standpoint, especially if you are financing a property, cash flow can be a challenge. HOA fees and maintenance costs have to be paid. And more than one investor has been literally shocked by "special assessments" that they had no clue could be levied. That doesn't mean you cant make good money with beach properties, but many new investors only see what they pay for a week rental, multiply by 50 and get excited. It's not really that easy.

brad

I do agree, if you can get the $36,000 loan. Most likely it would be a first mortgage and the seller would hold a note for the balance.  Make sure to have a firm understanding with the seller on this. I would recommend a RE Attorney help you with this.  It is simply best to try to clear up all details going into a deal than having to figure out details if something unexpected happens.

What is you timeline for cashing out the seller? A Lease-Purchase agreement may be a possibility between you and he, but I don't think it would give you as strong a position as a sale.

All the points are valid.  What often comes up is a  due on sale clause with the lender $36K mortgage.  If you did a straight sale, they might want that balance paid off immediately. If not, they may have a right to foreclose if they call the note and it is not paid or refinanced. Of course, if this is an older mortgage note, there might not be a due on sale clause, but that is unusual now.

You also want to find a way that your payment, or at least an agreed upon portion goes directly to the lender that has the mortgage.  I you put cash down, and he doesn't keep up the payments, you may have no rights if the lender forecloses. 

I am going through a similar situation where I have a tenant that wants to buy. I am the seller, so I am working with my attorney to set up the process.

I'm in the Birmingham market, so let me know if i can help with some info. 

brad

Jeremy, what area are you looking for in Alabama>

brad

I guess I voted on this by mistake,  but the answer is pretty much correct.  All wills will go through probate, and if the will is clear (and not contested) the court usually follows with the deceased wishes.  I have attempted to contract a property where the heir was to receive title to the property. In the end we decided to wait until probate closed to do the deal.  There are probably some nuances to your situation/question that an attorney should answer for you. 

Sounds like you have found out first hand the TV shows are a bit misleading when it comes to renovations and repairs.  In my opinion investors need to have a good understanding on maintenance and repair issues, as well as what it takes to handle improvements.  Ultimately, time is going to be a determining factor in the success of most investors.

I have been fortunate because I have learned enough over the years to handle most any situation. The wisdom, as you are learning, is the realization that money saved by doing it yourself may be less valuable than the delays that happen when your do it yourself.  I've saved a lot of cash by doing it myself over the years, but often, at the end of the day, what I saved was less than the rent income or carrying costs I incurred.

I still have rentals in Madison county (Harvest-Toney- HSV Sec. 8) so feel free to keep me posted on how your new project develops.  We are starting to look toward small multifamily also.