All Forum Posts by: Marcell L.

Hi All,

Short Story.

one of our buildings was part of a large fire that wiped out half a block, 6 buildings. The city came in and demolished and cleared all the properties. 

1. the property is under an LLC and is now just vacant land. I have a city tax bill that will be coming up in the next couple of months.

2. I will have a city demolition bill coming my way as well. probably in the range of 25K-35K.

My question is around tax bill and demolition bill the city will be sending my way:

The land maybe is worth 5k. 10k at most. 

If I do not pay my tax bill ( around $2,500) and let the city foreclose on the property. Will that impact my personal financial profile - credit score etc.

Same question on the demo bill - If i just let the city put a lien on the property and it eventually forecloses is there any financial impact to me personally. 

I rather walk away from the land. 

thank  you. 

Ok, thanks. The reason I asked is because I invest in Albany  and tried to do a refi with Trustco  last year. Half way through  they said they new policy was they only lend to folks who also live in the area, not just own in the area. Was hoping that changed, because as you mentioned ,they are great.

Sunny- do you also live in the same county where you are investing?

@Russ Draper, thanks for the link. I had never heard of Sharia law in reference to the loans either. I have not put in an offer yet. I know the place is in bad shape, vacant and no bank will lend. He cannot afford to fix the units to make it rentable.  I asked him what was most important to him ( outside of the sale price) to be able to be able try an and  put a deal together that works out for everyone. I think he is in over his head, is in bad health and might want to just get rid of this headache.  I reached out earlier this afternoon, hope to hear back from him in a day or two. My initial idea is to offer a bit more than I would be willing to pay - that would incorporate "interest" into the price. 

Hi All -

I am in talks with a FSBO on the possibility of doing seller financing. Because of religious reasons, he cannot accept interest. In order to overcome this challenge, I was thinking of offering more for the property to capture missed interest. As an example - add the amount of interest a 10 year note @ XX% would accrue into my offer upfront. Does anyone know if there are any restrictions by law which would do not allow zero percent interest seller financing? I am pretty sure seller financing between family requires a min rate.

Hello All - Want to see if I am correct with the following when trying to understand only principal pay down  and its impact on returns.

Keeping numbers hypothetical, round and simple.

100K house

20K  down payment 

Cash Flow - 2000 a year.

COC = 10%

Assuming every year there is ZERO appreciation:

Year 1 Principal Pay Down - 1,000

Question - How do I calculate the principal pay down as part of the overall return?

Do I add principal pay down(1K) + CF(2K) and divide by initial capital ( 20K) to get a ROI?

If yes,

is it correct for me to take the total principal pay down the subsequent years and apply the same formula. Example - if by year 5 there is 10K in total principal pay down and still 2k in cash flow. add them together (12K) and divide by initial same capital (20K)? 

Thanks All!