All Forum Posts by: Account Closed

@Alex Ray Looks like you did things backwards. ;-) You should have priced properties before making the move. Can't say I blame you though, the Seattle area is beautiful, when it isn't grey.

@Gregory Storm I got multiple emails that the price was going up. Check your "Spam" folder on your email account.

 Good point. Indeed, that is how I buy my properties. The reason why? I'm not going to live in them and I know my costs to fix it up. Mold, rot, electrical, bad floor plan all can be fixed fairly quickly.

 It's good to see some "real world" experiences.

Thanks for adding that info.

@Scott Radetich @Thomas S. 

I have been told by those who litigate for insurance companies that the purpose of insurance to the insurance company isn't to make you whole, it is to make the insurance company profitable. Would that be your understanding? People falsely think that the insurance company is a rubber suit protecting them from all damage, when actually it is more like a plaid vest made of flannel. It might look snazzy but it won't stop people from throwing stones at you.

@David Morgan I've done it both ways. I prefer to make the payment directly to the lender so that I know it gets paid but it is the seller's credit that is at stake. Some cities have companies that you send the check to and then they send the payment to the bank with any remaining going to the seller depending on the numbers and on how the deal is structured. But, I've done it both ways. Whatever the seller will agree to.

@Cesar Espino This one is worth $500 to have an attorney draw up an agreement that gets presented and paid off at escrow. Write out the basic agreement on a yellow pad and include all of the details. It will probably take a sheet or two of handwritten language. That should be enough so that when the two of you meet with the attorney the attorney can ask the remaining questions and write up an an agreement for you. Easy peasy.  

 Some of the benefits include a fast transaction, you don't need bank financing, your credit probably doesn't matter.

The two biggest worries you have are 1) Do they have the right to sell the property and 2) Paying too much.

If they require a Cashier's check at the door and not through escrow, you are probably headed down a rabbit hole you don't want to be in. No matter what excuse they use, if they aren't comfortable with you getting a Title Report and using an attorney to close, they are probably simply walking away with your money and you are going to regret meeting them. Make sure you have a Title Report and close with an attorney.

@Scott Radetich Asset protection is determined by your tolerance for risk. The two of you have different levels of risk tolerance. 

1) Happy wife, happy life. If it makes her feel better, it's worth it. 

2) If for instance you get into a car accident and several people are killed, your liability may be greater than your coverage. If someone gets hurt on one of your properties, the opposing side's attorney will do an "asset search" and the fewer assets you show the less likely the attorney will take the case. The people who get sued are the ones who show a lot of assets. By breaking the properties into different LLC s you mitigate some of those risks. A typical lawsuit runs about two years. You can't concentrate on your business if you are constantly providing interrogatories, attending depositions and hearings, providing exhibits and meeting with attorneys.

Protect your time if nothing else.

By the way, if protecting $15k isn't important to you I can give you my account number and you can make the transfer at your convenience. ;-)

 The term "I bought it on contract" means that the buyer is using a Land Contract or other seller financing and not using a bank.

 "I got it under contract" (should be "I've got it under contract") basically means that the seller has agreed to sell and the buyer has agreed to buy but the conditions haven't been met to close yet. This is usually said when using a real estate agent and traditional bank financing. It is basically informing anyone that would have an interest, that an agreement has been reached and they expect everything to proceed normally.

If you use a real estate agent, they write up the contract. 

If you don't use a real estate agent You can write up the contract or your attorney can write up the contract too. 

There are two ways to buy a property:

1) with a real estate agent (the real estate agent takes care of all of the paperwork for you) Money is exchanged in escrow.

2) without an agent, on your own or using an attorney. If you don't understand this process, have a real estate attorney do the paperwork for you so that it is done properly. Money "Should be" exchanged in escrow.

 A Lease Option is quite different than a Subject To. With a Subject To the Title transfers while a Lease Option does not, among some other very serious differences. Anyway, tell the escrow company you want to do a Wrap or a Land Contract depending on which vocabulary they understand. Yes, there are differences but either one gets you where you want to go. Either can be treated like a Subject To.  DON'T do a Quit Claim Deed (except in very special cases and then only with an attorney or escrow agent). For one, it invalidates title insurance but for two, it can cause a world of hurt when you go to sell and for three, it was one of the most common red flags for fraud in the last down cycle. You don't want to go there.  Have a Title report pulled, use an attorney or escrow for closing (like you are trying to do) and be aware but not worried that the Due on Sale clause exists. Keep some reserves for an emergency and always pay on time so you don't muck up the seller's credit report.