All Forum Posts by: John Nail

Not sure what area in the forum this question should go in.

One of my renters wants to buy the house they have been renting for the last 7 years, but they want me to carry the note.

At first I declined, but I told him I would consider it if they could put 20% down. That would cover any repairs and foreclosure costs if they defaulted. This year the taxes on that house were calculated on $70,000. I worked up an amortization schedule - Sale price $75,000 (owner-finance penalty) with $15,000 down at 7% for 15 years. That would make his payments the same as the rent he's been paying, only the house would be his in 15 years.

Are there any penalties I should worry about such as gains per year for the next 15 years?

Are there any laws in Texas that don’t require that they should then be responsible for any repairs and maintenance issues, or is that something that could/should be in the contract.

Thanks

You can charge the fee that is needed to run credit and background checks. Maybe even throw in a few extra bucks for your trouble.

Having someone pay for this service up front is a good start to weed out unwanted tenants.

Thanks for the info.

Love this website, forum and blogs, so much useful info.

Should or can a tenant claim that the security deposit be returned (minus deduction) but with the percentage that a normal savings account acquired since it was money just sitting in the bank.

Thanks

I live in an apartment building where someone was murdered last month and they haven't caught the guy (or woman) that did it. I need to break the lease but according to the agreement, I would need to pay $975 plus an additional $106 for each month I stayed there since I can't stay the full 12 month term. My wife has been having problems sleeping since this happened and we just need help to move out otherwise it'll end up costing us over $2,000 to just move and still keep my name on credit. It's in Grand Rapids, MI, Kent county.

Thanks

Thanks for the advice. I know I will need to read a lot more and talk to others that have been in real estate for a long time. But I am also falling back onto past experience from my exwife's boss. Both her and her husband had 2 different companies. He had problems and then started to transfer things over to his wife's company to protect them from the court so they could not claim any stake on the RV, car, boat or other tangible items that he bought through and for the company.

Doesn't the LLC protect your own assets from a person that wants to sue. Reading one of the MANY books that I have, it protects your own house, car, bank accounts and can only damage the LLC that runs the property. Or did I read that part wrong?

If I buy a duplex and live in one side, can I create an LLC to control and protect both sides?

Basically I want both rent payments to go to the LLC to pay off the mortgage faster. I figure if I have to rent an apartment now anyway might as well pay the same amount and rent it to myself. Or does that cause a confusion with the bank when I claim I am the owner/occupant?

Just coming out of a chapter 7 last year I at least know that I will need to wait about another 2 years before I can really can do anything. But what do you recommend to build credit back up, any books you can point me into the right direction? I've been able to get an un-secured credit card and a car loan so that is a start.

I was thinking about dumping about $100 a month into my companies 401K (they will match it anyway) and after 2 years take a loan against it for a down payment, maybe, or is that a bad move to borrow against it?

Nothing like dreaming big, eh? What about lease to own and being an O.O.