All Forum Posts by: John Lindemann

@Joel Kadlec, how many units do you have?  I just checked the website and it looks like it is $60/mo minimum?  If you have a relatively low number of units I can recommend a much cheaper alternative depending on your needs...

integrity title

@Greg P. @Steve Babiak

Sorry to resurrect an old thread but...I'm needing some clarification.

I talked to a wholesaler recently who has started using his non-profit company to purchase HUD properties during the initial 30 day offering window. He is then wholesaling these properties to investors or homeowners and his non-profit makes some nominal fee of $2,000 for being involved in the deal.

The benefit to the non-profit is the transaction fee, the benefit to investors is that he can purchase properties during the first 30 days with less competition.

My question is if I create my own non-profit to purchase properties can an LLC that I own purchase one of those properties? The LLC would likely not purchase all of the properties but I would want to be able to do that occasionally. The non-profit company would be legitimate in that I would be using the transaction fee to benefit my community and church (not to pay me a salary).

I've done some reading here: http://portal.hud.gov/hudportal/HUD?src=/program_o..., but I'm still unsure of whether or not this is allowed.

Is there an arms-length rule, minimum holding period, or other qualification on who the non-profit can sell to?

What if the non-profit company completed repairs on the property and then sold it to my LLC? Does that affect anything? My thinking here is that the non-profit itself is providing benefit to the community by repairing properties, creating suitable housing, and increasing home values in the neighborhood.

cool, sounds great.  i know some of my interests lately have been around finding good contractors and also lease-purchase deals

i plan to be there pending childcare availability

this is the first i've heard of it.  is someone planning to speak or are we just getting together to hangout and talk RE?

@Dan H. - appreciate your time to respond. 

I sure hope that this isn't a $60k problem!!!

@Dan H.

I just got into a new issue.  We purchased a different house (personal residence) about 2 months ago and today I found out that we are on septic instead of public sewer.  The disclosures clearly state public sewer.  Our house is unplatted but is right in the center of city limits (we are in downtown Broken Arrow, OK).  We have been having sewer issues and the plumbing company came and ran a camera but never could find the sewer entry...apparently because there isn't one.

So now to the even better news.  If the septic system has failed or does in the future then I am legally not allowed to replace it with a like-kind septic.  I will/would have to pay to connect the house to the public sewer.  This is approximately 350 ft away and several bores/cuts across driveways.  I haven't had a plumber estimate it yet but from previous plumbing experiences I'd estimate $15k minimum.

So, now I've purchased the house...what are my options?

This is all in addition to a different plumbing issue that they had to have known about as there was evidence of prior damage and work done.

Has anybody ever had experience with arbitration/suits regarding disclosures?  IMO this is a major issue!  I can honestly say we would not have purchased this house if we had known it was on septic.

@Dawn Brenengen

After reading your post, the statement below from my contract with the realtor makes sense.  You are correct in your statement and I will hold up my end of the contract.  

• Seller agrees to pay a commission equal to X% of the total sale price of the Property herein described, as and for the compensation of REALTOR®, in any of the following events: 
  • The sale or exchange of the Property during the term of this Agreement, whether procured by REALTOR®, Seller, or a third person. 
  • The sale or exchange of the Property within X days after the termination of this Agreement, if with any one to whom REALTOR® has shown the Property, or with whom the REALTOR® has negotiated concerning the Property prior to the termination of this Agreement; provided that this clause shall not apply if Seller re-lists the Property at the termination of this Agreement with another licensed real estate broker. 
  • If REALTOR® procures a Buyer who is ready, willing, and able to purchase the Property, at the price and on the terms set forth herein, or at such other price and terms as shall be acceptable to Seller. 
  • The sale or exchange of the Property during, or after, the term of this Agreement to any party to whom the Property is rented or leased during the term of this Agreement, or within X days thereafter.

In review, I agree with and understand the idea behind this.  My realtor has done a good job of listing the property and he should be compensated for it.  I think he and I just had a misunderstanding during our conversation about whether or not the buyer had to have a Realtor.  

I'll reiterate by saying I am not upset by this...I am just an analytical person and needed to get a clear understanding of why I was paying him the buyer's side of the commission as well.  As it turns out...I'm not really, I'm just paying him what I had already agreed to pay him.  I just needed a different perspective - which as usual, the helpful folks on here have provided!

Thanks a bunch!

On to the next deal :)

@becca - yes, I expect the buyer to want the 3%...and to be honest I'd like to be able to give it to them. That would seem like the "best deal" for buyer and seller. 

wait...so @just beard you don't think I should have to pay the buyers side of 2% commission?