All Forum Posts by: Shane Moss

Hello everyone. I am in the process of purchasing a short sale. I've bought a couple of foreclosures in the past, but the short sale is new to me. I have a question regarding the seller and the fact that he is still in the home 1 week before I close. Before I get to that though, let me explain what's going on:

In early August, the homeowner and I signed a purchase agreement on the home pending his bank's approval. Finally, after months of pestering my realtor and eventually his, the seller's bank told my realtor today that they want to close this coming Monday. I am concerned because the homeowner is still in the house and I don't know what his plans are for moving out. I really don't want to buy the house while he's still in it. I believe under a normal circumstance, most buyers would "rent" to the current homeowner after the closing date until he/she could move out. Given the nature of a short sale, I really don't think renting the house to the current owner is an option. I also am concerned he could trash the house in vengeance after it's in my name. He has no real vested interest in keeping the property in good order.

How would you guys handle this? The bank isn't flexible on moving out the closing date. They supposedly told the owner over a month ago he needed to move out. Since it's not in foreclosure yet, I'd guess the bank has no legal right to force him out of the home. And I suppose I have no right either until the actual closing date. I guess one option is to have the sheriff pay him a visit once the home is in my name, but again, that brings me back to my concern of him trashing the house out of vengeance.

Thank you all for your expertise!

Shane

My parents have a tenant that had a lease expire on the last day of the month in August. A few weeks back the tenant expressed interest in a month to month lease, as he was looking to possibly buy a house. During the discussion, my parents informed him he can go month to month, but it would be $50 more in rent. In his old 1 year lease, he was paying $675 a month.

Here's the problem: He has sent in payment of $675 for the month of September, but he has not sent his lease back stating whether or not he was going to go month to month or yearly. My parent's thought is that he wants to go month to month and is avoiding signing the lease because it would mean an extra $50 a month.

I have two questions: How should they handle this? They haven't gone over to the house, but so far, he is not returning their phone calls. My second question is, how much more a month do you think is fair to go month to month? As I stated, they charge $675 for a 1 year lease. Is there a rule of thumb regarding how much more you should charge to allow this option?

Boy, it's never simple is it? I suppose it can't be. If it were, everyone would be doing it.

As always, great advice!

Not to hijack this thread, but I was logging on BP to ask a similar question.

I'm getting ready to move out of my townhouse and I want to quitclaim it to my LLC. I figured I'd just call a title company to write it up. Is that best?

I was also going to ask if I needed to refi the property for the business. I see you guys are saying no, which leads me to this question: Do you expose the LLC to becoming a victim to the "pierced corporate veil" problem by mixing personal financing?

Thanks for all the advice! I've found some more info on the Internet using the search term "event of withdrawal". Thank you fianancexaminer. It sounds fairly simple, but I'll probably do what Dave is suggesting and visit with an attorney to make sure my t's are crossed and i's are dotted.

I would think this is pretty common, but oddly, I'm having a hard time finding anything searching the Internet. I did see something about a bill of sale, although it wasn't really clear. Is that what I need?

Hello Everyone,

Unfortunately, I am going through a divorce. My wife will not be keeping either of the two rental properties and I need to make sure our 50/50 partnership is dissolved.

I know I need to do something with the operating agreement to get her name off of it. I'm just not sure the best way to go about doing this. The only thing the operating agreement states in regards to one member leaving, has to do with refunding the initial capital of that partner.

Is there a generic form on the Interent with the proper legal jargon that we can sign and attach to the original operating agreement?

One more thing... Both of the properties are titled in the business name. As such, I'm assuming nothing needs to be done here once the business is soley in my name. Is that correct?

Thanks!

Shane

I'm interested in this question too. My father is looking at buying a property that is currently handicap accessible. We're wondering if he should keep it that way after the re-hab. We figure not only is it good to help someone who needs a place like this, but also because of the reasons Greg stated above.

Hi David. I bought a book from NOLO called, Every Landlord's Tax Deduction Guide. In it are examples of a couple of Excel spreadsheets to track income and expenses. I copied it exactly. If you would like the template, send me a PM with your email address and I'll get it to you.

I stand corrected. Boy do I have a lot to learn!