All Forum Posts by: Jordan Sitzler

Great advice.  Thanks, Jim.  We found that in Tacoma, WA, law is that you need to give a 60 day notice to vacate or raise rents, but I'm still unsure about establishing a new lease.  I want to get rid of the old lease and establish a new one, still month-to-month, but more inclusive.  Does anyone know if I have to do anything to end the old lease, or will them signing a new one take care of that?

Hey everyone!  I just closed on the first property I've ever purchased.  It came with two tenants on a month-to-month basis.  I bought the house out of foreclosure from a wholesaler and it cash flows well.  I'm going to meet one of them tomorrow, and the other next week.  When should I present to them new lease agreements and a price raise?  One of them is quite under market.  I want to be tactful and respectful.  

The wholesaler I got it from suggested I meet them, shake hands, then inform them I have new documents for them I need signed and give them about a week between meeting and new docs.  

The old landlord payed their utilities, too.  I guess I'm just looking for advice on how to approach this as a newly minted owner.  Thanks!

Also, I'm not looking at banks, at least not anymore. I'm looking at HML's and private funds. I understand that no bank will finance any part of this until project is complete.

@Stephen Herbert, Yeah, I understand that.  I guess I took it wrong and I should be grateful for the tough words.  You're correct.

@all, okay, so I'm actively looking for an agent who will do this for a flat fee.  I have someone in mind who is looking at this right now.  They would represent me on the sale when, or if, it goes that far down the line.  If i'm renegotiating, any advice on how to come back to that table and some terms I should look for?  I believe I have the upper hand being that he wants to wash his hands of this.  The problem is he has his bottom, and stated it multiple times.  After closing, he wants to walk away with 57k.  Not a penny less.

@Jay Hinrichs  It's septic, but on city water.  Yes, the mobile is from 1978.  It will hopefully not have asbestos, but lead is almost a sure thing.  I received a few ballparks of 7-10k.  This is inclusive of disposal fees, permits to remove, air studies, etc etc.  Just gone.  At that point, being that it's in the middle of a few stick builds, a few other mobiles (property isn't just out in the boonies here, guys, it's in a neighborhood), it may sell as is and leave the other headaches be.  But like I said I'd like to bring on a new reman home, double wide. 

For others reading...it's not that the septic has issues...it's just not known.  In WA we need a septic inspection.  That's all this is.  It may reveal a monster, it may not.  If a huge issue is present, or it fails, I'm out.  BTW it's in Pierce Co, WA.

 Charlie:

Somehow I missed your reply.  Thanks for taking the time to write all that out!  Great advice.  I'll take your point #1 and go find someone.  I think you're right in that I can learn quite a bit from them.

This guy has NO money at all, and I don't think he's faking.  He can't afford to even pay a septic inspection, and I already told him that it won't hold up the show and that I'd cover it :/  I'll try to put something on the official agreement that if it fails, he'll cover it though.  For sure I'll put on there that if it fails, it's not a done deal, just that the money to repair is going to need to come off that price.

The land is definitely not rural.  It's on the outskirts though in a pretty sizable neighborhood, near Tacoma, WA.

Hey, Joe.  I appreciate the reply. Not the advice I was looking for, but it's advice none-the-less, and I appreciate it.  I'm of the opinion that if one were to wait for all lights to be green before going, one would never get going.  I don't have all the answers.  This is my first "deal."  It's meant to be a money making process, but I'd argue that just as much, a learning process.

No, I'm not wrapped up in the property. Frankly I don't even really like the property. I do know, however, that other people will. I know my ARV to 10k. I'd like a better, more accurate figure, but it's a start. I also know my in price, and my rehab for the most part. I know that I stand to profit handsomely and that IS indeed what matters. I know I sounded frantic in my post, but you sounded assumptive. I know it's easy for the experienced to forget what it's like to be in the inexperienced shoes, but I need to start somewhere. Yes, an exhaustive knowledge would be nice, but I was hoping that's what a professional forum like this could help me with.

I don't feel it's fair to tell a person to exit the stage just because they're not 100% educated.  When the numbers work, other stuff doesn't matter as much.  That other stuff to me, happens to be where I'm going to finance the new manufactured home.  I know I'll find the funding, and so I stand by what I said, "i'll figure that out later."

Thank you again though for the caution, and a little cold water.  It's a healthy reminder that it's a game that not everyone succeeds in.  I'll try to slow my step. 

@Nghi Le

I'll absolutely PM you.  Just posting this here for others and for public scrutiny.  

Yes it is a manufactured home. The rehab is going to be 115k-124k depending on permits and surprises. ARV of this deal is 275k with no carport or garage, and 300k with one.

Thanks, Lance.  I'll look into one then.  No it wouldn't be normal in my area.  I'm looking at using all cash to finance the land, then figure the rest out.  It will be family money so I have no major worries on time frame.

And I agree.  No done deal yet.  I won't call it done until the deed is in my name.

Hey, all!  I did a gentleman's agreement and he accepted my offer.  I'm going to get a purchase and sale agreement form to him tomorrow.  We agreed to split closing costs, I'd take care of septic inspection, and I'm tearing down the mobile on the land.  How do I proceed to title?  How long should this process take, and what all do I put on this purchase agreement?  I'm a greenhorn, but it's a deal (I believe) and I'm wanting to act.  My brother I'm hoping will be my cash partner, but any advice on that I'd gladly take. 

60k is the price.  I have 25k stashed but I'd prefer to use more of financed money, I just don't think I can get it within 15 days.  I'm hoping to close May 1st. 

How do I do septic inspection?  Anything else to look for?  They owe 3000 in back taxes, and they said that can be taken care of at the title transfer.  This is my first deal.  I plan to just purchase straight from the owner and no agent, because he isn't willing to spend the money on one, and I'd prefer to save a few grand on a cheap property when my offer has been "accepted."

Another note, the mobile is a for sure tear down.  This complicates things, especially for my first, but I'll take what I get.  I assume I need permits :/  Mobile is title eliminated I believe.