All Forum Posts by: Denise Evans

If the lease is not an automatically renewing lease, you are not required to give notice of non-renewal. BUT, it is a good idea to give 30-days notice, in order to avoid misunderstandings and problems. In my experience, most tenants believe they can simply go month-to-month at their discretion, and the landlord just has to live with it. If your tenant believes that and stays in possession, you will either have to wait 30 days for them to move out, or file an eviction lawsuit and possibly wait longer than 30 days if everything does not happen as quickly as it possibly can.

All states have laws that prohibit you from paying anything of value for real estate leads or referrals unless that person has a real estate license.  In most states, it is a misdemeanor.  Beware of unhappy real estate agents who feel you are eating into their income, and report you to the local real estate licensing commission or board.

There is often an exception for small referral fees or rent concessions paid to current tenants for referring new tenants, but that is not available in all states.

Flipping is not illegal. Many investor require short sale participants (buyer, seller, real estate agents and title companies) to sign a conflict of interest affidavit saying some combination of (1)they are not related to each other (2) the price is a fair market price and (3) the property will not be resold within some time period, usually 90 days.  If you sign the no-quick-flip affidavit, and then flip, that is fraud only if you knew you were going to sell it that quickly when you signed the affidavit. Otherwise, it's just breach of contract.

The only possible bank fraud is in the statement about the market value. But, the exact same properly has a different value as a short sale than it does as a straight up deal. Homeowners will usually pay the highest price for a property, but they will not wait the time it takes to get a short sale approved.  Most investors in same boat.  I wouldn't worry about this issue on a flip.   The servicing company gets an appraisal.  The servicing company decides what price is acceptable for a release of the lien. Unless there is collusion between the appraiser and the buyer, there is no possibility of fraud. 

At least in Alabama, the discount rate for defaulted loans I much higher than the earning potential of the  money.  Other states might be different. Appraisers might know, because the banks often quote a discount rate for the analysis. For example, I once negotiated a deal on a subdivision in which the bank anticipated 7-year sell out of all lots if they foreclosed, and a discount rate of 22%. That was pretty horrific.

Hi Bruce, welcome to BP!  I used to live in Cypress, and am familiar with Spring. It's a great area for real estate investing.  Reach out to me if you need any advice. I now live in Alabama, with my husband, but I still have my Texas law license.

Hi Alison, I should have read this post before I commented on your other one. So, Gulf Shores or Orange Beach. There are still some really terrific short sale opportunities down there.  I know of some condo complexes just over the line, into Florida, that have Chinese drywall stigma, but not all the buildings have Chinese drywall.  You get the cheap prices without the expense.  I have a contact with some real opportunities in the Phoenixes, if you are interested in them.  I'll be happy to connect you up. The woman I am thinking of is really hooked into the community, incredibly hard working, and knows absolutely everything going on down there.  (I'm halfway between Jemison and Montevallo, just past Randolph and Six Mile)

Hi Alison, What part of the Alabama Gulf Coast? As you probably already know, Daphne/Spanish Fort, and Fairhope, and Orange Beach, and Gulf Shores, and Foley (to name the major areas) all have completely different personalities and sub-cultures, and very little mixing with the other areas.  You have to specialize in a submarket.

Glad to help!

It depends on the bank.  Most do not have a specific form.  Just write something up called "Third Party Authorization" and have the borrower give the bank permission to speak to you as fully as they might speak to the borrower, about any private or confidential information.  Have the borrower sign, provide loan number, street address, and last four digits of social security number  Safest to have borrower's signature notarized, although not usually required.

Or, banks will usually allow a one-time authorization via phone if you and the borrower are conferenced into the call, the borrower answers some identifying questions, gives you authorization, and then drops off.

Good to know, @Jay Hinrichs. Thanks!