All Forum Posts by: Kenny Lundgren

Here is the situation:

My stepdad and his partner sold their business and building a couple years ago and retired. My Stepdad passed away last year leaving the contract for my mom and his/her partner to collect on. I want to help both of them get their money.

The people that bought the business and property payed good at first then started paying here and there, now they are not paying at all. My mom and business partner do not know what to do.

I don’t think the not paying Is financial, they have two nice big houses we know of and still travel for fun. My fear is they are going to make their money, run the property into the ground and walk away leaving my mom and business partner holding the bag on a run-down building needing repairs and unable to sell.

I have come up with two options. They foreclose and resell the property, they don’t really want to put in the effort (they are both too nice and don’t know how to go about it). So, my options are for me to either help them proceed with a foreclosure and resell the property, I would then borrow the excess profits at a fare rate to invest in more real estate. The other option is for me to buy their contract and do it myself. The option chosen is completely up to them. I have a feeling the purchasers will find the money once the foreclosure process is started.

I believe there is equity in the building, and it could be a win-win situation. I need to contact an attorney in Memphis to discuss the options and legalities.

I think this could be a great learning experience for me. 

If there is a better forum category please let me know 

Thank you

@Lane Kawaoka

Thank you Lane, I doubt you remember having a phone conversation with me at the end of last year, but you helped me realize I just needed to take that first step. Now that I took the leap, I just want to keep going and growing. Thanks again.

Thank you every one,  I invested in Memphis Tn.  I have family in the area and travel out there at least a couple times a year.   The reason i chose Memphis was, I figured i could always check on the properties when i am in the area.   

I paid $75,000 Each with 20% down, just over 1% rent to value and they each cash flow about $150 a month after figuring in vacancy loss and repairs.  If i had it to do over again i would have bought more expensive properties first since, this is my second and third loan i only have one more at 20% down, then it goes to 25% down.  other than that, so far i am happy with the deals.  I am looking forward to many more.  

I just closed my first two out of state rentals in February,  so far so good.  I wanted to let the first month or so pass before I posted.  I am super excited and plan on doing at least 3 more this year.  I bought turn Key and have property management.  I learned a lot, good and bad.  Not really a lot of bad but a couple things i would have done different.  I now believe that when People say the hardest step is buying the first property they are correct.  I wish i would have started sooner when i first started looking into real estate investing.    I am now hooked and want to expand my portfolio as fast as i can.  

 Eder Aldana - Thank you for the welcome and congratulations on your new property

Yusef Griffin - Thank you and congratulations on your new property,  Little Rock was another area of                              interest but i decided on Memphis for now.  I plan on expanding to more areas later on.

Darrell Traylor - I have talked to a couple people opn the phone have havent settled on a property yet.

James Wise - Thank you for the welcome

@Mark Hart

Thank you for the welcome and the heads up about street by street. 

I am out in the Memphis area at least twice a year. 

thank you again 

Have a great weekend

Kenny

@Brandon L.

Thank you for the warm welcome and all of the informational links.  I will let you know my thoughts after i read through them.

Thank you again for all of the information.

Kenny 

Hello everyone,

I am new to Bigger Pockets, and real estate investing. I have been listening to podcasts and reading the forums on multiple sites for the past month or 2,  this lead me to BP.  I would like to thank everyone for their time and all of the information here on BP, it is awesome. 

I Have 1 single family rental that was my primary residence.  I am now looking for out of state single family home rental properties . I have family in the Memphis area and I believe i will be starting there.m  I am also looking in other areas as well.  I have been thinking of buying a turn key for my first out of state rental,  to get my feet wet and learn the process.   I plan on purchasing the first rental by the end of the year (much sooner if i find one that the number works)   and a minimum of 2 next year.  (I have much bigger goals then that, but those are the realistic ones,so i don't seem like a dreamer).  I have already cleared the first hurdle and I am pre-appproved for a loan (the letter said approval, not qualified).    Now the search continues.  

Have a great weekend