All Forum Posts by: Luis Rivera

Not looking to upset the world order here, but can someone share if their is a benefit to using an agreement for deed with the seller in a Lease Option scenario. 

Much appreciated,

Luis

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Article in the Local Section of the Friday 28, 2014 SunSentinel, Broward County, Florida

Lawsuit Settled in Killing

A man named David Nelson was killed in an apartment complex in Plantation by a neighbor, Jaime Vogel who was arrested and charged with murder. Nelson's wife Marla, sued the apartment complex management company for negligence, arguing that they should have known Vogel was a risk and never should have rented an apartment to his family. The Greystar Management company settled Nelson's claim for $1.5M.

The lawsuit was filed on the premise that a person who rents a property from a landlord or manager expects proper background checks to be conducted on other renters. Frank J. Mari, executive director of the South Florida Management Assoc said background screenings are not required by law but they are recommended by common sense. "They definitely should take the time to make sure they have reputable tenants. I have a responsibility as a property manager to the owners and to the community, the other renters, to keep a safe place".

Christopher Marlowe, who represented Marla Nelson, said Greystar had run a background check that revealed Vogel had previously lived in another Plantation property managed by the same company, and that he had been evicted for causing disturbances and making death threats against other tenants. "The failure by Greystar was in not actually reading the background screening that they had in place. They had all the background they needed to know they had been lied to by the applicant who claimed he had never before lived in a Greystar managed property". "How could you possibly represent to anyone that you are offering a safe place to live if you are not paying attention to your own background checks"?

Negligence suits against property managers stemming from murder cases are rare. When they do arise, they tend to be over security lapses, not failed background screenings, said Mari. In this case a background check was conducted - "it just wasn't read".

Vogel never went to trial for the crime, he commited suicide in jail. Because it was a negotiated settlement, the outcome of the case won't set any legal precedent. 

Purchasing a 4 unit home using a master lease for the first year, then getting bank loan. Is there a standard or a formula to use outside of "whatever you and the seller agree to" that can be offered as an equitable amount during the lease period? Along with a down payment, I am going to want that amount to go toward reducing the balance of the purchase price. Appreciate your advise.

Luis

Bill, Brian,

Thanks for the feed back. Seller is an older gentleman with no bank loan looking to cash out. I'm interested in purchase, just looking for time window to stabilize revenue and expenses as I believe that with a 6 mo to 1 yr window I can increase revenue and create better position with bank. Don't believe he is interested in lease option, just cash but I will explore this. 

I am looking for a strategy where, if he is adamant about a cash deal, I can buy some time to improve numbers before going to the bank. I have up to 25% down if I can somehow parlay that into something creative that will buy me the time, although I will explore partial owner financing as well.

Luis

Looking to purchase a 4 unit multi and would appreciate feedback on some strategies for moving forward. Although the sales sheet info says no owner financing, I would like to offer to buy it as a lease/purchase. I can apply up to 25% as a down payment. I would like to offer 6mo to a year to close on the sale. This would allow me to stabilize revenues and expenses and apply for a loan for the balance. I understand that the owner has family living in two of the units and they would be moving out if the place is sold. Also would give time for the leases on the other two units to expire and renegotiate. Rent in the units has room for increase if re-rented at comparable market rates. Not putting any numbers into this because I have not spoken to the owner yet and don't have solid numbers to share. I am most interested in a strategy(s) with which I can convince the owner to sell (if the numbers work out) as a lease/purchase. Also, I cannot occupy any of the units.

1. How can I make this attractive to the owner as a lease/purchase?

2. I am assuming all rents and expenses will be mine during the lease period. Unless I can get him to finance a portion of the balance during this period, what monies, if any, would be due to the owner while I am leasing. Can I use the amount of downpayment to leverage this?

3. Ideal would be for him to owner finance. What cost savings can I share that would entice him to consider.

4. Will banks give me credit for my downpayment to the owner against the purchase price or will they be looking for for an additional down against the loan?

Appreciate your thoughts as to the good, bad and ugly of pursuing this type purchase.

Thanks Brian,

Something to throw in the tool box when discussing options with the seller.

Luis

Looking to purchase a 4 unit multi and would appreciate feedback on some strategies for moving forward. Although the sales sheet info says no owner financing, I would like to offer to buy it as a lease/purchase. I can apply up to 25% as a down payment. I would like to offer 6mo to a year to close on the sale. This would allow me to stabilize revenues and expenses and apply for a loan for the balance. I understand that the owner has family living in two of the units and they would be moving out if the place is sold. Also would give time for the leases on the other two units to expire and renegotiate. Rent in the units has room for increase if re-rented at comparable market rates. Not putting any numbers into this because I have not spoken to the owner yet and don't have solid numbers to share. I am most interested in a strategy(s) with which I can convince the owner to sell (if the numbers work out) as a lease/purchase. Also, I cannot occupy any of the units.

1. How can I make this attractive to the owner as a lease/purchase?

2. I am assuming all rents and expenses will be mine during the lease period. Unless I can get him to finance a portion of the balance during this period, what monies, if any, would be due to the owner while I am leasing. Can I use the amount of downpayment to leverage this?

3. Ideal would be for him to owner finance. What cost savings can I share that would entice him to consider.

4. Will banks give me credit for my downpayment to the owner against the purchase price or will they be looking for for an additional down against the loan?

Appreciate your thoughts as to the good, bad and ugly of this type purchase.

Thanks John,

Appreciate the advise. I'm here to learn and will do so at every opportunity.

Regards,

Luis

Greetings to all,

My name is Luis Rivera and I live in the Ft. Lauderdale area. I have worked in the aviation business most of my career. In joining this site I would like to network with those that have ventured before me and to continue working on my "education". I am looking at the various options for develping passive income(s) that will allow me to transition from my current field when the time is right.

I've been networking a bit locally and have exposed myself to this investment segment enough to where I feel I can have an intelligent conversation on the various opportunities that are out there. So it's a matter of focusing and acting which is my goal for the first quarter of this year.

I would welcome anyone, particularly in my area, who wants to share the good, bad and the ugly to do so at any time. Looking forward to starting off the new year right.

Luis