All Forum Posts by: Denise Evans

@Jaron Walling, this is supposed to be a safe place for people to ask questions and get multiple points of view and gain an education.  For example, one person recommends listing with a Realtor.  I am a Realtor, but that is not always the best answer. It is property and location specific. If I had a SF rental property in an area full of rental houses, I might spend a couple thousand dollars for an appraisal and then sell it to one of the other nearby landlords. No Realtor necessary, no commission expense. We bring a lot of value to the table, but we are not the answer to ALL questions.  This sharing of ideas helps bring out those perspectives and I think is a good idea, no matter what one's experience level.

Whether to sell empty or occupied depends on what buyer will pay the higher price--owner occupied single family residence or investment property. An investment property should be sold with tenant in place to maximize sales price UNLESS:

Tenant is in default; or

Residence requires extensive rehab; or

Rent is significantly below market and more than 6 months remains on the term.

Even buyers looking for value-added properties want tenants in place initially so that rental income can be received while the new owner evaluates what changes to make, obtains quotes and schedules the work.

Baldwin County uses lien auctions rather than the former certificate auctions.

I've spoken to some people who said they went smoothly with no surprises.

Unless you have a clause in your lease allowing it, you cannot cancel a lease just because the property has sold. You can probably buy out of it, by giving the tenant the last month's rent free and perhaps a couple of hundred dollars.

For a single family rental, you are better off putting it with a real estate agent.  I would spend the money to get an appraisal, and then list it for the appraised amount. That way, there are no arguments about "it's not worth what you want...." The only push back would be "I can't justify your asking price under my particular investing guidelines."

That being said, I might be able to sell it for you to an investor I know who is active in Huntsville, where I grew up. Contact me via PM and tell me how much you want for it, how much the property taxes are and how much the insurance is. What elementary school district is it?

Connect with me and send a pm and I'll send you the list

The Revenue Commissioner's office is supposed to confirm the person redeeming actually has redemption rights.  For example, the owner might have died and some neighbor "redeems" and just plans to take over and rent the property out because the kids have all moved to other states. That neighbor doesn't care about getting good title. There are lots of similar things that happen. Call the office and ask them WHO has redeemed, and then do  your own due diligence to make sure it is a proper person.  If not, write a letter disputing that person's right to redeem. If it is the right person, the Revenue Department will send you your money. Baldwin County usually turns checks around pretty quickly.

Hi, I am a Tuscaloosa resident and long-time commercial real estate broker.  Would love to meet or chat and provide some guidance and options.

In Alabama:

First, if the lease says it is between the PM as landlord and the tenant as tenant, that is completely wrong. YOU are the landlord, and have always been so. This is a common problem. The lease should say something like, "XYZ Property Management Company, as agent for the Landlord, and Joe Smith, Tenant, agree as follows..."

You must send notice to the tenant that you are now managing. The prior PM company should have done that, because it is as much for their protection as it is for the tenant to know where to send the rent.  If the notice does not go out, then the prior PM is on the hook for "all landlord responsibilities," whatever that means. No court guidance on that language. Very sloppy and not well thought out. But, it is scary if you are a third party property manager.

Do you know when the lease was terminated for the default?  You have 60 days after lease termination to give an itemized accounting of sums withheld from the security deposit. If you miss the deadline, the tenant can sue you for double the security deposit amount and attorneys fees EVEN IF they were clearly in rent payment default and are being evicted.

Only an Alabama licensed attorney can appear in court to represent another person or entity, unless it is small claims court. Evictions are handled in District Court, not small claims. If you own the property in your own name, you can prosecute your own eviction lawsuit. It's all done online. if you are the 100% owner of a legal entity that owns the property, and have conduit tax treatment, that is still two different entities--you the person and your LLC or corporation, so an attorney is required for court filings and appearances.

Be aware that even with a turn-out order, Jefferson County sheriff's department is running 3-4 months behind in serving them, so sometimes cash for keys is the only economically sensible solution if you have a saavy deadbeat tenant.

Only an Alabama licensed attorney can prepare documents that transfer title, such as a deed.

Virtually nothing else REQUIRES an attorney, just specialized knowledge and experience. That being said, it is often safer to go with an attorney who might have a higher likelihood of that knowledge and experience than the typical real estate broker.

Please send a PM if you want to talk on the phone. You have a pretty wide-reaching set of issues.

The heirs have rights of redemption. I have a free video on my website that explains who the heirs are, under Alabama law.

If the property is in any county EXCEPT Jefferson County (Birmingham or Bessemer Division) and the prior owners died before the tax auction, then the tax sale is void. That means the heirs can have it set aside, but by statute they must pay you taxes and interest in order to do that.  But, because it is not a true redemption, they do not have to pay you redemption-authorized charges such:

If property contains a residential structure, value of post-auction preservation improvements made by investor(s) plus cost of casualty insurance plus 8% interest on those items.

If property is located in an official urban renewal or urban redevelopment district, the value of post auction permanent improvements made by investor(s) plus cost of casualty insurance plus 8% interest on those items.

BTW, redemption costs, other than the above items, is only taxes plus annual interest. In some circumstances the overbid also earns interest, but that is probably not relevant here. If you paid more than the true redemption amount to acquire a property, you will lose some of your money if there is a redemption. If somebody told you that you could charge legal fees, due diligence, title searches and any number of other things, they gave you bad advice.