All Forum Posts by: Ken Williams

One more question:

If I had liability insurance on the property when we owned it will the insurance company pick up the attorney fees if this goes to court? I have since cancelled the liability policy but just a thought I had.

Thanks

I believe what has escalated the buyers response to me was that the city told him he needed to take care of a backup or they would take action against him. (Just heard this). I do not think he is taking care of the tenants/property and especially any sewer issues. The problem with the sewer is a flat patch in the line (from what I was told by the plumbers, but I am not a plumber). The fix would be a pump or just snaking/pushing the line when it slows down. We would snake the lines when it slowed down about every 3-4 months or so. Not a big deal either way- and he knew this. When he starts bringing in liability claims of the city closing the property down, etc., that is when I start questioning things and second guessing myself. I have done everything right and if he serves me then so be it. I hope that is not the case, but I think we should be ready with everything we need to win.

The buyer had plenty of due diligence time and should have been comfortable with the purchase. The buyer got a great deal with tremendous upside, and I think he is bluffing too BUT I want to be prepared. It is too bad we live in society with so much litigation and lawsuits. Just one more thing we have to deal with.

I have never been sued before and do not have an attorney in the state of the property. Would I be better off getting an attorney from that state, or using an out of state attorney? (Hoping I will not need one).

Thanks to all that have answered!

Hello, I am being threatened with a lawsuit on a property we sold for a failing sewer system. We put a clause in the contract about the sewer problem, which was the exact same clause we had in our contract when we purchased. The buyer knew there was a constant backup problem with the sewer line. My question: Does the buyer still have a right to come back on us for any damages at all, even when the sewer was disclosed in the contract?

He is asking for past records of work done on the sewer and who did the work. The only thing we did was snake the lines to clear the backup in the past. Should I show these records to the buyer or ignore the request?

Also, if a suit is brought against us should we go with a local real estate attorney? This was a commercial property in a small town with limited attorney presence. Would it be wise to go with a bigger attorney in the state, or even use our out of state attorney?

I will bounce some questions off of our real estate attorney on Monday, but this property is out of his state, and I have been worried about this after receiving word from the buyer today.

We sold the property at a discount and disclosed to the seller, so we tried to do the right thing by him.

I thought some of you might have experience and info you might be able to share. Any info would be appreciated.

Thanks

We have a tenant that is section 8 in a home in NE. The home is very old and had some problems when we bought it. We fixed everything that we saw that needed fixed.

We recently had a storm come through and damage part of the roof in the house, which caused a slow leak. This was about 2 weeks ago. We tarped and stopped the leak until we can get it fixed. Material for the roof is scheduled to be delivered Wednesday and roofers will start right away.

This tenant has not payed rent for May and when we submitted a "notice to quit" she gave us a letter stating "It is within her rights as a tenant to have all emergency repairs fixed within 24 to 48 hours of notification" And gave a list of petty repairs and the roof repair. She goes on to say she will be getting quotes for painting the exterior f the house and will bill us for that. haha.

Anyways, when someone makes statements like this I want to take them serious no matter how crazy the claims.

We will be sending this in to the attorney for him to review but I wanted to get all of your opinions on this dilemma! I feel like I cannot get to many opinions on this.

Would you evict her for non payment of rent?

This tenant has only been in the home for 3 months and was late the 2nd month as well.

That would be my take on Detroit. It would be buy and hold very long term. But if it cash flows and meets the specs you set out to find, then you can wait for the upside.

I think Detroit is too big of a part of America and manufacturing to die out totally. I think it will reach a point where it looks very attractive to some of these big companies manufacturing oversees that want to bring production back to the U.S..

Just a thought. Detroit seems to be ideal for some of that.

Anybody here doing deals in Detroit? What does everyone think of the opportunities there? Are there opportunities?

I would like to look at targeting this city and zoning in on some good properties. For those that invest, live, or have interest in Detroit, I have a few questions for deal analysis and advice.

1) What are the target residential areas in Detroit? Including neighborhoods, areas, etc.? Where are the renters, what areas cash flow best?

2) What are the target commercial areas?

3) What is the future of Detroit? What do you see happening to the now empty city?? When and Will it ever come back?

4) What property management companies are located in Detroit? Who would you recommend?

5) How is it rehabbing in the city right now? Are there contractors still in the area and are they reliable, etc.?

6) How is the city to work with? What do they demand for home owners, landlords, etc.? Any licensing, fees, taxes to look out for?

I think we should pick a city every month or so and focus our efforts on where the deals are at, and what makes sense in the area. As we all know, there are deals in every market, we just have to track them down.

Also, I am personally looking for contacts in the Detroit market. If you are interested in this network and putting some deals together please pm me.

Thanks

Thanks for the reply Jeff. Yes, the personal residence will be long term buy and hold. It is where I will be living and settling down.

I do not currently have any mortgages on anything. I need to pull some money out of an investment property to have for a down payment on my personal residence I will be buying. It was a spec home I built cash, and will be selling to the buyers this summer.

I do not want the mortgage from the investment property, which I will be using as a down payment look like a personal/owner mortgage. The reasoning behind this is that I will be holding the personal residence long term, and sell the investment this summer and would like to get the best rates possible for the long term hold.

I hope that makes sense.

Thanks

Yes Peter, you are right. I own all of my properties free and clear right now. Maybe this is why I am asking about the current financing situations we are looking at!!

Dawn,
You are also right. As much as it pains me, I am playing the let's be smart and find out how to get the best rates possible game!!! haha

Absolutely nothing illegal going on here DAWN!!
I actually do not own these properties, my LLCs own them, and I then own an interest in that!!! Just like in the good ol' textbooks!!

Thank you all for for your input, if you are a direct lender or have info pertaining to my situation, please PM me.

Thank you

Yes there is a reason. I will be purchasing a new personal residence and would like to make sure the terms and interest for my personal residence are in the top tier. They have told me that with another mortgage on my report I would not qualify for the rates of a top tier loan.

The house in question is brand new, never been lived in and will eventually be sold. In the meantime, I would like to pull some money out for a good down payment on my personal residence.

Am I looking at this wrong, is there another way?