All Forum Posts by: Edward Schenkel

welcome, and if I can answer any legal questions let me know.

Ed

That is a good question and anyone who is involved in real estate investing should know about the meaning of an "as is" clause. If you look at the way the courts explain an as is clause, the effect of such a clause is to shift the burden regarding  mistake or defect to the accepting party. In easy terms, what this means is that the Seller is not making an representations about the condition of the property. Often, contracts have a seller representation that the major systems (e.g. heating system, plumbing) are in working order. If a property is sold as is, there is no such representations. Therefore, it is very important to do a good inspection before you purchase a property as is (well you should do a good inspection anyways, but more important when it is sold as is). If there is any big problem with the property it is going to be difficult to sue the seller whereas you would likely have an easier time making such claim without the as-is clause. One exception to this is that seller cannot misrepresent something and then rely on the as-is clause. Also, if a property is sold as-is, it is implied that the seller will not make any adjustments based on the condition of the boiler, roof, etc (but you can certainly try!).

In short, an as is clause means you are accepting the property in the condition as it is in, the seller is making no representations with respect to the condition of the property, and the burden regarding mistake or defect is on the buyer.

Any other questions, feel free to ask!

Regards,

Ed Schenkel, Esq. 

i am considering making an investment on a property on the other side of the state or in another state altogether. Does anyone have any experience managing properties from far away? Also, you never know what the future holds - lets say i move to CA in 10 years and i have an investment property in CT. For those of you who successfully manage properties far away, what do you advise? What if you have a problem with the tenant? what if you have a major problem with the property? do you employ a manager or management company? If so, what do they typically charge?

@ Chris Martin, would you say that step 1 essentially involves an assumption of the mortgage? If not maybe that is an option too (if lender will allow it). Then you get remaining seller finance.

@Christina Hamilton, I am an experienced real estate attorney and would be happy to help you with any questions. Please message me or drop me a note here. 

Can this strategy work if there is currently a mortgage on the property? I guess if as part of the transaction you assume that mortgage (the bank will have to approve). @Arthur Banks, I am curious to hear your experience. The transactions I have seen use seller financing only when there is no mortgage on the property.

Ed

I have seen some investors do very well with seller financed transactions. In other words, instead of using a traditional bank, the seller provides a note, or "takes a note back." These deals are often attractive because you can close quickly, do not have to bother with the headaches of a traditional bank, and can structure the note differently (e.g. interest up front, balloon payments, etc..). Has anyone had success with such a structure? If so, how do you go about finding these types of deals?

Welcome @John Sheridan,

I would be happy to answer any legal questions. Make sure the multi-family properties are zoned multi-family or are legally non-conforming. The last thing you want to do is buy something that is an illegal multi-family. I would be happy to answer any legal questions. I have a lot of good knowledge and experience.

Regards,

Ed Schenkel, Esq.

Welcome @Khalfani Golding ! If i can answer any legal questions for you, please let me know. I would be happy to help you. I have a lot of good experience and knowledge to share. 

Regards,

Ed Schenkel, Esq.

@John Mezzoni, welcome. If you have any legal questions i can help with, give me a shout,. 

Ed