All Forum Posts by: Jonathan Jewell

@Raul Flores  My friend, there is no deal here at all.  Everything is wrong with this picture.  Move onto the next one.

You are getting charged 4 points because banks don't lend on LLC's, only commercial lenders do, and they have high fee's. You are comparing apples to oranges. Consider it the cost of doing business and be thankful you found a lender that will do the refi for you.

and just to add for those wondering why I didn't write it up as a lease purchase.  Truth be told I didn't think of the transaction being that way.  I didn't consider myself a landlord and my paperwork specifically states, seller is not a land lord.  I viewed it as the sale was finalized , with affordable payment terms.  Just like selling a car on terms.  But again, since this happened to me, although it sucks, I learned alot, and have since changed my wording on my contracts.

@Steve Morris   I'm going through the EXACT same thing as I type this from Pennsylvania.  My first tenant buyer problem in 8 years.  They got hooked on drugs, but worse still they are using every legal angle of the law against me, and they are the scumbags not paying.  They even tried to sue ME in small claims court for $12k claiming all sorts of bogus BS.   This has been going on for over a year now.  I will tell what I did right and what I did wrong.  What I did right, I did not accept any partial payments, I didnt go on the premises or try to shut off utilities etc, or harass them in anyway.  

What I did wrong.  I initially tried to counter sue in small claims to get possession of my mobile home back since they were suing me anyways. Wrong I had to withdraw my complaint and try it in civil court, but good news was the Judge saw all my paperwork and my notes and saw their demeanor vs mine.  He ruled in favor of me not paying.  So in civil court, I won a judgement on what was owed in back payment which was 4800.  But they still owe me $11,000 on note payment.  Since they didn't pay on the judgement, I had to go back to the courthouse to get A writ of execution.  I'm awaiting a call from the sheriffs office and I'm going to have him tag their car for possession.  Since they are still not paying on the note, I have another attorney working on fully getting possesion of the trailer with some law in PA that I cant even tell you.

What the Judge told me, was because my paperwork wasn't specifically spelled out as a lease to purchase, only a promissory note and an agreement of sale, it did not fall under tenant/landlord law.  If I had that verbiage in my note and on my contracts, he would have ruled in my favor and ordered them to vacate the premises, but since it wasn't in there all he could grant me was money judgement.   Lesson learned the hard way, and its still an on-gong saga, but I see light at the end of the tunnel.

@Cory Spitznagel.  Like @Stephanie Medellin suggested, you can take that FHA approval and buy a 2-4 unit investment property. What I think your asking though is can you go and buy a property like a SF home using FHA while you stay in your rental unit. You can, but you would essentially be committing mortgage fraud. The mortgage is for owner occupied only and if you get found out, well your in a heap of trouble.

Now with that said, you can buy a home FHA as an OOC, and down the line move out and use it as a rental, that has been done plenty of times. But I would not buy using FHA loan if you definitely plan on staying in the current rental, not worth the risks.

@Daniel Rehner   "But if she isn't going to be living there then I think I will need to write up a new lease as if he was a new tenant."  

Smart move, that's what I in fact did in the past when I had this same situation myself.  If he is the primary wage earner, then yeah I think you'll be ok.  Sounds like you got this covered man, your handling it like a pro.  Hope it all goes smooth for you from here on out.

@Tatyana M. If you use an online email service such as gmail, simply scan and email to yourself, and put the property in the subject line so you can search for it in the future.  I personally do this for mobile home titles. Google isn't going anywhere, so there will always be a record.  Could also scan and place on a flash drive.  So whatever happens to your originals at least you have a printable copy.

@Michael Gloss.  Have each person sign a release of liability form.  I agree it's best to get a licensed & Insured crew to do the work, for your own piece of mind I guess.  But I have seen some pretty shoddy sub par work from so called "licensed" contractors and some beautiful work from non-licensed and insured folks.  Get references of last 4 jobs (you should be doing that anyways), and see what your comfort level is with the person in front of you.

 Here's the kicker, sometimes these insured outfits don't even carry insurance for the workers they employ!!! 

That's my take on it, hope it helps

@Gary Josephs   What @Jessica Zolotorofe said is exactly the way to go. Just an FYI 2 Mortgages are not that uncommon. It could be a first and 2nd mortgage when she purchase the property (80/20) or a mortgage with a line of credit or HELOC. Just think of it as just another payoff, thats all no big deal.

The only thing I would add to check are to see if there are any back taxes.  Add it all up and see if you have room to make a profit or whatever your strategy is.

Good luck to you, I hope you do well! 

@Daniel Rehner  Oh Boy, this exact same situation has happened to me twice already.   I'm reading some of the responses some I agree with others I don't.    Here is the order I believe you should go just from my own experience with this exact situation.  1) Before you panic or file or do anything, touch base with them in a week, just leave them alone and see how things play out.  This may have just been a blow-up between the two of them and the first thing out of ones mouth  is "I'M LEAVING!"  and that just may not be the case just words spoken in anger, so let it ride for a bit.  2) If in fact someone is leaving I honestly don't believe telling them they are both responsible for rent and holding to it is going to help in anyway, (blood from a stone)  You CAN however remind them that they are both responsible, but give them an alternative to make alternative payment arraignments (collect from each party separately) or leave quickly if there is no chance of reconciliation.  Maybe one of them will in fact leave but send the other money to support the other.  You won't know any of this until you have a sit down, and I highly recommend it or at the very least talk with each of them separately.  Be a psychologist for a day and see where their heads are at.  If one is saying F this, then you have no alternative but to start eviction

The reason why I suggest going this route is because feelings are at an all time high between them.  What could possibly happen if you go in there as the big bad landlord, they will direct the rage and hate towards you instead of each other.  Then you not only get your money, but you'll have to contend with nightmare tenants, that will exploit the system and destroy your place.   Be firm but also be flexible, understand **** happens, but also protect your property and your finances.

That's my take on it, hope it helps