All Forum Posts by: Steve S.

I'm not familiar with dealing with foundation issues. I have someone coming by to look at it in the next 10 days while i have this house under contract.

Any thoughts on how concerned I should be about something like this?

I also notice some cracks in the brick facade.

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I guess nothing to add to this.

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Part of the lease would be that the tenant pays the pool servicing. I have a property management company that would pass through this cost to a pool servicing company.

1) would you take on this deal if the numbers worked?

2) would you be concerned about liability? I'm getting a quote from my insurance agent tomorrow for insurance costs to do a comparison with my other rentals that don't have a pool.

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Another option is I can pay down about $5,000 per month on the note and completely pay it off in 2 years without dipping into savings. Why would that be a bad idea?

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http://waco.craigslist.org/reo/5783243472.html Asking $169k Midway school district - very desirable Would rent for $1450-1550 most likely

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Originally posted by @Account Closed:

Originally posted by @Steve S.:

Originally posted by @Account Closed:

Originally posted by @Steve S.:

I a friend who has agreed to terms on a prospective rental with a colleague for $100,000.

After securing funding, etc it became clear the property was worth more than the seller (someone i have known forever) thought and they would like another $30,000 for the property.

Their numbers all work out at $130,000 so they are fine with paying that, but I am not sure how they make this happen from a documentation, tax, etc perspective.

Any thoughts on what issues this would cause and how to go about making sure all i's are dotted?

So, they have a contract to sell/buy the property for $100,000? If so, that's all that matters. If they already have a contract for $100,000, then the seller can't now say it's worth $130K and change the terms of the deal.

So, unless they don't already have a written contract for 100K, then, the deal stands as-is.

In case they don't already have a written contract - all contracts for real property must be in writing to be enforceable. No oral contracts are allowed for sales of real estate. So, if the contract is not in writing yet, there is no enforceable agreement, and the seller can just look for another buyer.

The issue is this is a very good friend and some things were discovered after the contract and financing were finalized. Sure, I could legally move forward with the deal, but I'd prefer to "make them whole" and not lose a friend which means the right thing to do is to pay the additional $30,000.

I'm just not sure how to do that from a tax purpose given the contract was for $100k and the financing was for $100k with a 25% down payment and fees, etc.

I dont' understand who is who in your story or why things are going the way they are going. Unless you want to spill all the beans on what you're talking about, I don't know how anyone can advise you. But, maybe someone else will understand what you're talking about :-)

That's fair. The deal is done. Info came out after paperwork. I in effect "stole" the property from someone close to me. Contract and loan are finalized. My first loan payment is in 3 weeks.

Giving him $30,000 would make it square and a "fair deal".

I want to maintain this relationship but now all paperwork eye is done. Can I just write him a $30,000 check?

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Originally posted by @William Mccurdy:

You forgot COMPOUND INTEREST. It would turn that 6k into almost 10k in 16 years. Either pay up now or pay more later. That's why it's best to get seller credit for closing.

There is no seller credit if I'm BRRRR'ing since there is no seller. Just a refi

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All Forum Posts by: Steve S.

Steve S. has started 294 posts and replied 637 times.

Post: Cash ROI vs Total ROI when investing in a rental?

Post: 800+ credit score - 1 rental property - what type of rate?

Post: Thoughts on this picture of a foundation crack on rental?

Post: Thoughts on this picture of a foundation crack on rental?

Post: Analyze this deal in Waco

Post: Buying a rental that has a pool - Would you do it?

Post: Analyze this deal in Waco

Post: Analyze this deal in Waco

Post: Financial question about rental purchas

Post: When doing a BRRRR, what could I expect to pay in closing costs?