All Forum Posts by: Joe G.

If you vetted the realtor and property manager well, there might be little need from an attorney unless you don't know about any state specific issues. Does the state you are purchasing in use statewide or local approved forms from the realtor association? If so, these have been vetted by an attorney most likely. 

However, an attorney might be needed for asset protection advice as well as a CPA for tax advice. Not sure what your exposure is at your price point, but keep in mind that your agent and PM will likely remind you they aren't a lawyer if you call them to complain later about something you didn't know about. 

For instance, in Washington DC for example, many times tenants are required to get first right of refusal prior to the sale of their rental. Sometimes they are even allowed to sell their FROR (first right of refusal) to third parties who can afford to pay low market price for the building. Not sure that all agents would think to mention that as they might assume you know and the PM won't mention it unless he wants to know which resident is going to be paying him after closing. 

An attorney would ask you what you strategy is so s/he can evaluate your exposure to lesser known housing laws. 

Good Luck!

@Brian Burciaga

Check out this link; it's old but might still be handy. Disclosure: I am not from the area. 

https://www.biggerpockets.com/forums/93/topics/832...

Wholesale is all about the numbers. Make 100 offers and maybe 5 of them will continue onto possible sales. If you are uncomfortable until after you see that house, then make plans to get leads after you see it. Congrats on getting into the industry and for cutting your teeth on wholesaling. In the mean time, I suggest you read about Driving for Dollars in the forums if you haven't already. Sounds like you would have a chance on your ride. 

@Ruel, don't let your tenant take advantage of you. You should get in contact with them and always follow the terms of your lease unless you think they are illegal. I am not familiar with CA tenant laws, but I understand they can be very tenant friendly. This means that unless you start the process immediately you will be losing money months from now and second guessing why you didn't follow the lease that you worked so hard to put in place. My heart sinks for you. This is the unfortunate part of the business, but you owe it to yourself, your hard work, your family, and other tenants that are looking for a good landlord like you to follow the terms of you lease. 

These folks may do this each month unless you enforce the lease now.

Also, always following the terms allows you to prove a track record to lenders as well as prove a track record in the event that a tenant sues claiming that you treated them differently than any other tenant. Leases are written to protect both the landlord and the tenants (as long as they pay their rents).

@Joseph Cutrona

Although I am a neighbor just over the Mason-Dixon, I am not familiar with the Commonwealth's systems. However, I did find this article on a Pittsburgh law firms site. About half way down it talks about needing to file the judgment in all the county courts where the person resides or owns property and the explaination of why it is beneficial. 

https://www.pghfirm.com/blog/5-steps-how-to-collec...

If you don't feel like jumping through all of the hoops, maybe you want to consider placing your judgment for sale for a discounted rate. 

Good Luck!

@Matthew Karmazyn

Just a quick thought as an agent, investor, and soon to be lender -- 

Not sure about your local area, but 2 hours down the Susquehanna we have some offers that require for the full entity docs to be presented with the offer. Mostly it is REOs. I have received feedback in the past that my forms looked too generic while the other party had a very good "LLC documents package". Don't know if it is worth the $$$, but figured I would mention it.

@Tyler Deuel, some lenders are less likely to take the equity as your cash contribution. Some will as long as they get to pick the appraiser. Others don't care as long as their first position is 75% LTV or less.

To give you an idea of popular lender criteria, check out https://www.11capitalfinance.com/

Click on "Product Sheet" and see all of the different options just on this sell sheet to understand where lenders are in the market today rather than 2008.

DISCLOSURE: I am currently evaluating a sales relationship with this company. I am providing this link for some insight into your question about today's lending market.

@Tyler Deuel,

If you can get a loan for 75% of $300 ($210k on conventional terms) and pay off $80k and give the owner $130k in cash at settlement, would the owner be willing to hold the second note on the property for $80,000? It is secured by property (albeit 2nd position) and they aren't on the hook for the existing mortgage. How would your cash flow look there?

Hey, @Blake Chapman Do you have any investor friendly title agents? They can clean this up and also let you know if you can transfer title into an entity while paying least possible tax / transfer fees. In Maryland, in most cases you can transfer without the above as long as you are a member of the entity. Good Luck!

@Nick Ritter

Maybe frame your student loan debt like a deal. 

Compare your rate of return from the pay off versus investing in a property. Or maybe a partial payment (to make yourself more bankable) while ensuring you have the capital to buy a new place using that leverage. 

Then calculate cash on cash return and see how you feel. 

Congrats for being in this position!

Good Luck Nick!