All Forum Posts by: Wilson Lee

I have a MHP deal floating around. But the area has declined in population here are the local stats

population 16,000 down from 22,000 in 2000

Poverty rate 36%  

number of  jobs is 5.65K

The deals numbers are the best i have seen.  750k for 51 units. of which 19 are POH and 31 are TOH.   There are also 20 more pads with utilities that the current owner never purchased homes for.  The utilities and roads are maintained by the city.   That is less than 10 K per pad!  The next best deal I have seen is 28K per pad.

I am not sure if the population decline and the poor school system should kill the deal.   I don't know how i feel about it.

I have a four unit apartment building. The person who sold the building may have installed new plugs/ outlets. I hired a contractor to change out two electrical panels. The exact wording is “CHANGE OUT 2 100A SUB PANELS.”

The city electrical inspector says the breakers he put in to the new panel are not up to code. And they must be brought up to code because there are new plugs in the building. (Arc fault breaker’s)

I feel that the panels include breakers in the breaker’s must be breakers that are up to current code.

Our contract states He is not responsible for “Additional electrical work beyond that specifically mentioned in this estimate and proposal including, but not limited to, that which may be required because of pre-existing electrical code violations or additional work revealed to be necessary as a result of performing the specified work.”

He is trying to say the breakers are not a part of the panel and wants to charge for the correct breakers.

What are your thoughts?

Seller disclosed to me he is in a dispute with a contractor. There is currently no lien on the property but I don’t want one to pop up after I buy it.

The building is half vacant due to plumbing issues. The seller was trying to fix the issue. I don’t know too much of the details but he feels that the Contractor did something wrong. And is refusing to pay.

There is no lien on the Property as of now. If contractor places a lien on it before we close, it’s the sellers problem to deal with. I don’t know if I would be responsible for the lien if his contractor filed the lien after we close.

I’m in the state of Alabama, does anyone have any insight?

Septic is not that big of a deal,   $300 per year to pump it. and $10k replacement over 30 to 40 years of useful life. ($300-ish a year).  most parks do 2 tanks per lot/pad.  You can bill +$30 a month for "park sewage"

But Well water is too much liability,  Imagine contaminated ground water is found and now +50 new lawsuits come your way.  

Quick update,  I do know the meter boxes and main barkers where just put in 2 weeks ago.  I drove buy and seen the men installing them.   the Seller is playing dumb saying they did no electrical work and nothing they did needed a permit. 

My fear is being made to rewire the building.  20k in a rewire will kill it unless they give up more equity.

I am under contract on a vacant four unit building and I am within my due diligence/Inspection period. Our own’s money goes hard in 10 days, The building is from the 1980s. Are states electrical codes got updated in 2015 requiring for wire outlets and a whole host of safety upgrades.

The building appears to have 4 new, out of the box, Electrical mains and meter housing’s. The meters themselves are missing. Inside the home it appears that Several outlet plugs have been swapped out, including plugs for the stove and dryer. It also appears that several lights are newly installed.

This area requires permits and inspections before the utility company can install meters. We have reason to believe all of this electrical work has been performed without permit. If I purchase the building that becomes my problem.

At best I might could pay a fine. At worst I could have to rip open drywall and redo anything.

While I am in my inspection. I would really like to get this sorted out before my earnest money goes hard.

The Owner is not interested In getting the proper permits a pulled and Is taking the position that they did no electrical work. Everything is hunky-dory and I should have the meters installed after we close.

I want to gain some type of leverage and force the price down, I also want to get the city inspectors out on site before my inspection period ends and tell me how much they’re going to make me redo.

What is feasible? How do I go about this.

New development, I was just talking about this circumstance with my neighbor who informed me that they do not own their house, they are renting it in the current owner is getting notices about foreclosure at the property. They are getting ready to move as a result of it.

They gave me their landlord’s number. It turns out the owner has fallen ill, their family tried to sell the house but couldn’t and have been renting it and someone hasn’t been paying the mortgage. The l owner who entrusted the care of the home their child is open to a short sale.

It has not entered for closure yet. And I haven’t done any do diligence.

I feel completely unprepared for all of this to be falling in my lap.

I received a call this morning from a lady in another city. She heard from a friend of a friend that I buy real estate. She somehow Got my number and she told me her story.

Her and her husband are divorcing and they are letting the house go back to the lender. They are both moving out of state and have accepted the hit to their credit report.

They never tried to list the house for sale, they been too busy with the divorce proceedings and the impending move. She’s under the impression that it would take too long to sell the house.

I explained to her that I felt her best option would be to get a realtor and to sell the house normally. But if she wanted to I could assist her by purchasing it through a short sale. I explained I never purchased a property through short sale and read her the Wikipedia page definition of what a short sale was.

She agreed and said she would like to try it. She forwarded my contact information to her ex husband who is also now on board.

Some general information about the property. They purchased it for $111,000. 8 years ago. It is a USDA loan with 0% down.

This house is a four bedroom two bath 1500 ft.² house. The house across the street sold last month for $130,000 being only a two bedroom one bath and 1300 ft.²

Where do I start? I’ve read a few post here on BP but still feel out of my element. Anyone have any good resources? Does anyone think this transaction has potential to work? Is there a better vehicle outside of the short sale to acquire the property?

Hey, I purchased and rehabbed a house last year with a HM loan. Back in November I applied with a new lender for a 30 year fix mortgage. We are cashing out to buy a different property. The lender took until January to order title and appraisal. They came back requesting different document, They requested I pay for a 3rd party attorney to review our LLC. Just last week they requested again our operating agreement and formation papers. As of today they still do not have a closing date.

I have already paid for appraisal, Review of the LLC, and title. What is some recourse options a borrower has when the lender refuses to process the loan? Will seeking help form the state licensing board help?

I have passed up on so many deals in the last few months. The time to refinance this HM loan is counting down.

 Is anyone doing  portfolio Hard money loan. to buy and rehab?