All Forum Posts by: Account Closed

Did you do a Title report to make sure that he is the actual owner and isn't simply looking to get your credit data?

If he is granting credit (acting as the bank) of course he has the right and the responsibility to make you sure you can afford the payments. Why should he take your word for it? He is putting his $100,000 (or whatever it is worth) house at risk.

Did you do an Appraisal to determine value? Don't trust a realtors word on value, a bank wouldn't.

Is it a Wrap or a DOT? Do you even know? What if he disappears when you want to pay the balloon and take ownership?

This one is as screwy as any I have seen.

Personally, I'd have a real estate lawyer take a look at the transaction to protect your interests but from what you've said (and you may have left out a lot of important items) your real estate agent doesn't know how to do this transaction without a looming $50,000 in legal fees to sort it out later on.

@Tony Dong  I left my Sr. Sales Position in a Fortune 200 company to do Real Estate 20 years ago and never looked back.

I have made far more money, far more friends and on top of that, I decide what to invest in, not some corporate C Suite guy ;-).

Welcome.

Ken

@Frank Chin Sounds good. How much is 36 months of " service contracts on heating systems" ?

Assuming you have bought a rental and the water heater is fine for 3 years before you need to replace it, how much was spent on the service contract?

You can't cure all ills. They got themselves into this situation. 

Their actions dictate their options. 

If they don't get enough, they have learned a valuable lesson and will either change and benefit going forward or not. This is a Business not a charity. Give 10% of your profit to charity, (God is honored by that) but don't reinforce bad behavior.

Never trust "the numbers"

Always trust the crime reports.

Location, location, location

Ask for a copy of bank deposits.

@Jasmine Johnson I would consider selling it to a Tenant Buyer with $25,000 down and a couple hundred per month more than your mortgage payment. I'd use the $25,000 down to buy the next house.

I had one that called me at 8:00pm on Sunday evening while I was on vacation on the coast. The water heater had burst. I had to call a plumber Monday morning and spend $1200 to have one installed. It was a $300 water heater I could have installed with three electrical connections and two water connections. It takes a guy an hour to buy and install. But, that is the law in Seattle. You have to deal with it. 

I had another that simply ran the hose from the clothes washer drain to a hole he made in the floor because it backed up the septic.

@Chris Gordon Buy it "Subject To". Do NOT put much money into it ($3,000 maybe) and sell it as a "Minor Fixer" on a land contract.

If you can't find a way, assign it to me.

@Ken Breeze Try Great American Title. They use escrow, title & attorneys and are very investor friendly.