All Forum Posts by: Kenneth C.

Hi @Paulette Midgette. At the moment , I don't have a lot of additional information. The firm is a law firm that concentrates their practice on foreclosure, REO closings, evictions, etc. I proposed those same questions to the attorney at the firm, and they confirmed and asked that I submit a purchase sale agreement and they will pass it on to the bank.

I will consider reaching out to a real estate transaction agent as you suggested, and I may take you up on the referral. I do have one additional question. Would it be too soon to engage an agent? Should I wait to see if the agreement of sale is accepted first?

BP Community:

There's a property that I have had my eye on for quite some time. Prior to the property going into foreclosure, I reached out to the owner's family (of whom I was a neighbor) and inquired about making a deal. Long story short, I was given the run around and eventually the home was foreclosed on. Over a year has gone by, and now the property is basically a shell after the squatters have had their way with it (e.g. Copper pipes taken, etc.). I recently reached out to the firm that was listed on the docket and surprising received a response back. I expressed my interest, but I am now being asked to create a purchase agreement for my offer.

I'm still a newbie and have two properties currently under my belt. Both were purchased via the MLS. Since this is uncharted territory for me, I'm not exactly sure how to proceed. This is a question that I can direct to the firm, but figured I reach out here first. Are they asking that I create an "official" purchase agreement or are they simply asking that I provide them with my numbers/bid? Is this a common practice for the buyer to generate a purchase agreement when bidding on a property?

I look forward to your feedback. Let me know if additional details are needed.

@John Underwood @Eileen Murray Thank you both for the feedback and perspective. The certified letter would definitely come across as a bit aggressive and distant. I would love to have all of the utilities in my tenants names, but if a tenant is delinquent with the payment of their water or gas bill, the liens are attached to the property and not the tenant. I think this has changed for gas since Jan 2017, but I'm not 100% certain. Nonetheless, I believe there's a landlord cooperation program that helps with keeping tabs on any unpaid gas bills, but there isn't any protection for water.

Again, thanks for the info.

BP:

I'm about 4 months in to owning my first two SFH's with carryover tenants. Thus far, we have had a great working relationship. I purposely staggered the leases to expire 2 months apart, and I made them shorter so that I could get a feel for the tenants and address any issues with a new lease if they opt to stay on. What I have discovered thus far is an abnormally high water bill (e.g. $160.00) of which I pay. My instincts are telling me that they may be running a make shift laundromat for their extended family. I'm not exactly sure. My intention is to reach out to the tenant directly via "certified mail" and also give them a call to find out what exactly is going on. Not in a accusatory manner, but I'll ask some prodding questions re: if there are any potential leaks or the like in the home that they are aware of. I'm sure there aren't, but by taking this approach it will make them aware that their usage is a problem and hopefully they'll be more conscious of the cost that they are running up.

How have you all handle similar situations?

KC

@Russell Brazil Thank you for the prompt feedback. One tidbit of information that I failed to include that you response reminded me of. It's the same lender, just the commercial division.

BP Community,

I'm looking to get some feedback on what I perceive to be an impractical request, and may put me at risk of losing a significant amount of capital. So here's the scenario...An AOS was signed by all parties and slated to go to settlement in several weeks (Dec. 22nd). After doing my due diligence and conferring with my attorney, it was in my best interest to switch to a commercial loan in order to accomplish my goal of purchasing the property and placing it into my LLC without incurring undue expenses (e.g. Transfer Tax 4.1%), and potentially triggering the "due on sale" clause in the mortgage at a later date should the lender find out.

The Seller is willing to make this adjustment, but they would like to include a contingency clause that I would be responsible for reimbursing the cost incurred for the agreed upon repairs if we are unable to close on the new agreed upon date Jan. 15, 2018. It's really a matter of administrative work that must be done by my lender and doesn't have any bearing on my qualification for a loan.

Given the above scenario, is what the seller asking for practical? I would like to share my opinion on why I perceive it to be impractical, but I'd first like to hear from your objective point of view.

Thanks.

Thanks @Paulette Midgette for the info re: inspections and the business license. Concerning the license, I've had one for a little over a year now.

Sweet! Thanks @Yuriy Skripnichenko

Thank you @Connor Eichman and @Yong Wu for the feedback!

BP Community,

I close on two SFH in approximately one month (BTW - This will be my first deal!!!). Both properties currently have tenants that would like to stay. They are currently on month to month leases, but my intention is to have them sign new leases (6 - 12 months). My question is regarding the renters license that is required in the City of Philadelphia. I will not own the properties until after closing/settlement, and will be in the middle of the month when this is complete. Therefore, I am at a lost as to when should I apply for the license. Has anyone else been in a similar situation? When should I apply for the license?

Any information and advise would be greatly appreciated.

Regards,