All Forum Posts by: Deitra Curry

Thank you very much. I will confirm if this, a land assembly,  is what they are proposing. I wasn't sure if this arrangement was an original idea or something that I could better research - a recognized approach. Appreciate your recommendation on the rezoning as well.

Seeking feedback on what third parties I should consult with and any experience this group may be able to offer. My husband and I invested in 4 acres and a bungalow house (residential property) in the downturn off a main road in an area that is building up commercially (suburb, but main throughway). We border a corner lot which has a grandfathered in business up for sale; on our other side is a dilapidated house that also sits on acreage and has nice frontage. Our property is currently rented with good tenants (nothing is forever). The 2 adjacent property owners are motivated to sell (into retirement years) and have been trying to do this for some time. I personally wanted to sit on the property until approached from an investor with a good offer and/or until the property reached a higher market value.  I saw this as a longer term investment. While the area is growing, there are still other properties in the area for sale (not sure the particular factors for not selling). Across from us is a large retirement complex that has expanded to its limits.

Before the downturn (and before our ownership), there was a deal in the works to have our property and adjacent ones developed for condominiums. It fell through with the recession and we later ended up buying the property from the bank. It is suitable for retirement community or such.

recently, the realtor listing the corner business, and a lawyer, approached my husband and all adjacent lot owners proposing collaboration on a deal to approach the township for commercial zoning.  I have yet to call the realtor to hear out the details of his proposal directly. Per my husband, he is proposing that our property is worth the amount we'd like to turn and also that everyone in the group (if it zoned and we had a buyer) would receive an equal/ flat distribution per acre owned. There are pros and cons of each lot, including ours(which is right in the middle and doesn't have access from the crossroad).

All property owners are onboard except us. I should hear the realtor out (as an early step); I just would like to be a bit more researched before I engage. My initial thoughts: 1) what would be the benefit of having one realtor - how would we ensure our interests are met vs seeking our own representation 2) what is the proposed level of flexibility we'd agree too if our bottom-line isn't met 3) why wouldn't we wait until a motivated investor approached us with a deal contingent on commercial zoning approval vs turning our property proactively commercial (I know this makes it more attractive- but we also aren't needing to sell right now 4) what benchmark information does the realtor have on the market value (can ask this question of course)

A positive consideration is the appearance of owner collaboration- something that would be necessary if an investor was interested. To me, for the right price, they will consider selling in the future anyways; they've now all shown interest. I feel that the 2 adjacent owners want to cash out now for the best price they can, not necessarily sit on it for the best timing. They want to move on.

I appreciate any advice on next steps, recommended expert or research I should engage, or considerations we should look out for.

Thank you all for your feedback and the wealth of experience!

After a few counter options from the prospective tenant, we decided to move on. It's not a good fit.

 I learned some lessons on the deposit, the risk of concessions, and some application documentation missing, including the explicit reference of the house being AS IS in written form and sharing of the lease packet in advance. We may consider the 1 room improvement option, which I think is a great idea to promote longer tenancy (no guarantees, but it's a fair offer).

Perhaps, this is a subject for a different thread, but do any of you require that ALL applicants walkthrough the property in advance of application and to personally meet them, outside of remote conversations/formal screening  before you approve their applications? The one applicant was here, leading the charge, and the co-applicant was out of state and coordinating their screening remotely, only seeing the home through pictures.  I believe the co-applicant just moving in from out of state this past week, potentially looking at other options (or through the windows),  played a part in this last minute feedback.

We recently moved out of an investment home. Right before, we completely redid the home (new cupboards, woodworking , everything). It's an old bungalow style and I decorated it in "gingerbread type" colors:). It's a certain person who likes the colors, but the paint job was professional and suited the look of the home's architecture. The posting had clear pictures of the rooms and we recently approved 2 co-applicants to move in this week. One of the co-applicants walked through the home, last month, and loved it, emailing me several times as such. She only asked that I complete a few minor repairs (already in process) and we agreed on a few touch ups on the paint that were planned, carpet cleaning, etc. Since approval, I've held the home 3 weeks until the other co-applicant could move from out of state (he hasn't seen the home other than pictures). They both received all the lease paperwork a week ago to preview and have since thrown red flags with inquiries on provisions outlined with the application. I conceded on a few minor items.

Today, 2 days pre-lease signing, they asked to paint the whole house white. I declined. The original applicant communicated the love of the home and we processed all updates agreed on during the original walkthrough. She told me that she could not live with the colors for a year and countered if they could paint it professionally and paint it back when they move out in a year, would I accept that? I declined. Not shared with them, but I let a new tenant paint before at move in as her dad was a professional painter. She painted deep purple and chalk paint rooms & then broke the lease. We've accommodated other longer term tenants on reasonable requests like carpet replacement, as our investment. In this case, we have no history, nor do they appear to want to stay (nor will they with the colors). 

Thoughts ? Have any of you accepted a co-applicant who hasn't seen the home-via a "live" walkthrough? I think this is the first issue. Is there something I should put in the application about the paint and anything cosmetic, if I start this process over ? We have a checklist for move-in and already have a protective clauses on paint in our lease. The rent is reasonable and I've had interest from the ad that I haven't pursued, if they back-out.