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All Forum Posts by: Edward Shin

Edward Shin has started 6 posts and replied 20 times.

Post: Any rec's for a great realtor in SHARON, PA?

Edward ShinPosted
  • Real Estate Investor
  • Los Angeles
  • Posts 20
  • Votes 8

Hi BP Family, Can anybody recommend a great realtor that covers residential properties in Sharon, PA? My REI partner and I are looking to sell one of our rental homes. I would really appreciate any input and advice. Thanks!

Post: INSTALLMENT LAND CONTRACTS: what's the good, the bad, and the ugly?

Edward ShinPosted
  • Real Estate Investor
  • Los Angeles
  • Posts 20
  • Votes 8

@Jeremy Pace sent you a message. Thanks!

@Sheri Ulm hi Sheri, thanks for your reply. when you say that you are cash flowing as a buyer, do you mean that you make your installment payments, but then rent it out to someone for a higher amount than your payments to create cash flow? And did I read that right -- you bought a $5000 house?! I assume it's not in Norwalk. Also, thank you for your point about taxes and insurance. We plan to structure our taxes and insurance in the same way. 

It would seem that the land contract is working well for you as a buyer, no? Would you ever sell on one? If you could share, what were the circumstances that led you to use the Land contract as a buyer? Any features or aspects that you particularly enjoy or dislike, regardless of how big or small? 

Post: INSTALLMENT LAND CONTRACTS: what's the good, the bad, and the ugly?

Edward ShinPosted
  • Real Estate Investor
  • Los Angeles
  • Posts 20
  • Votes 8

I've recently been introduced to the strategy of selling property using an installment land contract. It's appealing for a number of reasons: the buyer gets equitable interest in a property, takes care of all repairs, taxes and insurance, and ultimately, gets legal title to a property. The seller (me) gets top dollar for a sale, and monthly payments over the term of the contract (roughly 20 years) -- assuming the buyer is properly vetted and pays in a timely fashion. If a buyer does default, PA ( where our property is ) has favorable laws and clear procedures to handle that type of default situation ( not so in all states ) so i can rinse and repeat with little down time.

Before I pull the trigger, I thought I would ask the BP Nation to share any advice, anecdotes, or information about their experiences, caveats, and takeaways surrounding installment land contracts. It's hard to discuss this strategy objectively with the person who introduced us to the concept because all he sees is potential and upside (perhaps rightfully, but i need other perspectives). While I'm aware of some of the pitfalls and potential downside (especially with complex regulations and compliance issues), I'd really appreciate any and all opinions and facts that discuss installment contracts as good, bad, ugly (and other) so that I can view and assess this strategy from a diversity of viewpoints and experiences.

Any thoughts, BP Nation?

Post: Anybody familiar with SHARON, PA?

Edward ShinPosted
  • Real Estate Investor
  • Los Angeles
  • Posts 20
  • Votes 8

@Scott Weaner Ha! I think I just found my reason to look more closely into Sharon. :)

Post: Anybody familiar with SHARON, PA?

Edward ShinPosted
  • Real Estate Investor
  • Los Angeles
  • Posts 20
  • Votes 8

@Jen Kurtz What a great circumstance to have found you on BP! When I posted, I never thought I'd be able to converse with someone who actually had first-hand, personal knowledge of the area. Thank you for your reply and your insight. I really appreciate it and you.

It really does sound like a cute little area with a small town feel. The reason I posted in the first place was that the online research was either inconsistent with itself, or it didn't quite match up with what my friend was telling me. He mentioned the things that you were saying: nice part of town with good schools, B class asset, community feel, more owners than renters, good quality of life, etc. My research, however, seemed to suggest that it was a rougher area with potential crime problems, not-so-great schools, and a C class demographic. I chalked up the inconsistencies to it being a small town with a lack of true online representation, but I needed some more evidence to sway me one way or the other. In any case, thanks again, especially for the insight that it seems to lack some of the problems that might appear in rougher areas of other small city-towns. I'm looking at a SFH that is right off State St, just south of the high school, and depending on how this investment play pans out, I plan on adding it to my farm area for my PA investment portfolio.

Have you ever invested in that area? 

Post: Anybody familiar with SHARON, PA?

Edward ShinPosted
  • Real Estate Investor
  • Los Angeles
  • Posts 20
  • Votes 8

I have an investor colleague that I'm having lunch with tomorrow, just to talk shop and shoot the breeze. He emailed me about an opportunity in Sharon, PA, which will be one of the things that we discuss. I had it in mind to stick to Pittsburgh and Allegheny County, but he found a place in Sharon (Mercer County) by the Case Elementary School District, which is supposedly top-notch and award winning. I don't know much about the area or the school, so I thought I'd throw it out to the BP Nation. Anybody familiar with the type of are that is? What class neighborhood and so forth? Any anecdotal or factual details about demographics and such would help guide the online research that I've started to piece together. 

Hm. I guess that someone who believes in the integrity of the agent could argue that they did not submit the offer because they were looking out for the best interests of their client and was confident that another, better offer would come along shortly.  A more cynical view might suggest that the agent wants to secure the highest commission possible, so they either pooh-pooh any "low" offers to the seller, or simply (as in your case) don't submit them at all.

I remember hearing that one investor, whenever submitting low offers, includes that "buyer reserves the right to present offer in person." That way, they could ensure that they could present their offer without any potential interference from the seller's agent, and make sure that the offer was presented. They would simply tell the seller that "your agent was kind enough to have me come along so that i could present my offer to you directly." The seller usually didn't realize or care that the buyer was there because of the inclusion of that clause in the contract, the seller's agent was spoken of in an ingratiating fashion, and the investor could present their offer in the most favorable light.

Post: Anyone buy or sell on contract for deed/ installment land contract?

Edward ShinPosted
  • Real Estate Investor
  • Los Angeles
  • Posts 20
  • Votes 8

BP Nation: 

I'm considering buying a slightly distressed but under-valued SFH, renovating it, and then selling it to a tenant-buyer on installment land contract. Can anyone with experience (either buying or selling) share any relevant experiences and/or insight that might be instructional, cautionary, or otherwise useful?

My goal is to have passive cash flow and be relatively free of landlording worries since the tenant-buyer will be responsible for repairs, capex, utilities, and the like. We will either escrow taxes/insurance or I will receive them directly from the tenant-buyer to ensure payment. Theoretically, gross payments will be my net payments.

I realize I lose tax benefits, but the hassle-free aspect is worth it, and I do have other write-offs from other business.

I understand that the vetting process for tenant buyers is crucial since their lack of payment or lack of maintenance is the biggest headache to prevent. Lastly, I understand that the legality of the the contract for deed must be triple-checked, as there are many regulations (SAFE, Dodd-Frank, etc.) that affect this type of transaction. We plan to have lawyers draft and regularly update the legality of our process and paperwork.

Please feel free to chime in, O Wise and Experienced BP Nation. Thanks in advance for your words and guidance.

Post: In need of a real estate agent

Edward ShinPosted
  • Real Estate Investor
  • Los Angeles
  • Posts 20
  • Votes 8

@Ian Hoover

Get on this.

Just connected with Ian and he was an open book. He speaks from experience, not only as an agent, but also as a fellow investor. He continues to offer me valuable insight, advice and networking opportunities in Pittsburgh. Definitely worth getting in touch with him to talk shop.

Post: Would you rent to a parolee?

Edward ShinPosted
  • Real Estate Investor
  • Los Angeles
  • Posts 20
  • Votes 8

Based on the recency and type of crime (see below "@Verna M."), my biz partner and I thought it might be worth it to see what other applicants we could find, especially since the property was just listed. 

Thanks for the great input everybody.

@Nicole A. The unit has been vacant due to a burst water line and two cracked radiators. It was very difficult to assess full damage until recently, and repairs are being completed now.

@Verna M. After a little research, we learned it was a three year old charge of manufacture with intent to deliver.  Wow. 

Our takeaways: Just as we create and communicate our criteria for investment neighborhoods and type of units, we will create and communicate criteria for potential applicants, so that we can follow any relevant statutes and streamline the application process for our PM.  Huzzah for progress.

Edward