All Forum Posts by: Marc Winter

I agree mostly with Marcus Auerbach, however, I would recommend hard money FIRST.  Then pay off the taxes and other liens to give yourself a moment to breathe and consider what you can do.  

Second, you might sell it to an investor 'as-is, where-is'.  Make sure it is a real investor, not a wholesaler.  

Lastly, speak to a real estate attorney who has experience in this type of situation--it's more common than one would think.

Did you get a TIN for the Trust, or is it on your own SSN?  A separate ID for the Trust may require another tax return.  Are you the Trustee?

I'd suggest opening a bank account as a personal property trust--could be in the same name as your title-holding trust--the Trust docs will show it's for a bank account.  

And remember your new last name when you sign is "Trustee" (assuming you are the trustee). 

Good luck with your new venture.

If you don't hire a licensed home inspector (which I recommend you do) and you want to get an idea of what to look for, try this template:  https://d2myx53yhj7u4b.cloudfr...

@Adrian Jenkins simple answer:  it depends on the bylaws and the board of directors.  Owners and often tenants must interview with BOD or manager in CO-OPS.  Because of the legal structure of a CO-OP, they seem to have more 'discretion' over who buys in, and IF they allow renting.

I've had the same thing occasionally happen in Condos.

Best approach: DYOR and make sure you understand the process for the particular building you want to buy into.

What is the lender's policy on investor cash-out refi? LTV of 65--75%? Appraisers will normally try to come in at a purchase price, but not so much at a refi. Also, multi family (5 units and up) are appraised on the rent roll.

Perhaps try a local 'portfolio' lender, ie, one that holds their own mortgages rather than selling them to Fanny/Freddy.  Establish a relationship with that type of lender and you'll have a much smoother time.

Best!

Just about everyone knows the 3 most important things in real estate (location x3).

However, the 3 most important things for an agent:  inspect, inspect, inspect.  If you don't know your market, you won't know a bargain when you see one.

Start in your spare time to go and inspect listed property in your area. See if you can go with an experienced agent on one of their inspections. Maybe knock on a few FSBO doors.

If you inspect just one property each day, in 3 months you'll know the market better than many more experienced agents.

Product knowledge is critical.

Sadly this is not an uncommon a situation.  Some suggestions:

a.  Make sure you understand your state and local eviction laws, especially on how they apply to an eviction moratorium.  We have been able to evict during the moratorium for reasons OTHER than non-payment of rent.

b.  Make sure there is a clause in your lease that states the owner/manager has the right to enter at any time there is a health/safety emergency, so you can document, diagnose, and repair the emergency.  The determination of what constitutes an emergency is at the sole discretion of the owner/manager.

c.  A deadbeat tenant won't normally care about their (lack of) credit, however by certifying and recording the monetary judgment you receive after court, you MAY see some return of those lost dollars if or when that tenant needs to clear a judgment off their record.

d.  Since the tenant contacted the city regarding the condition of the property, use that as leverage to get them out of their 'uninhabitable' unit, for their own safety, of course.

Best of luck!

I agree with all the above that the odds are slim, however, check with your local in-the-know contacts/lawyers/investors.  In PA, with a certified, recorded judgment the debtor's income may be garnished.  And several times over the years we've received a substantial settlement on an outstanding judgment.   

Good luck!

There are a few ways to tackle this:  if you can cheat out some space, it is relatively easy to run hot/cold lines.  The waste line will be more of a challenge, but certainly doable.  If there is a way for 2nd floor to go directly to the basement, you might be better off putting the setup there.

Other items to consider--who pays for the water/sewer?  Will you be using coin-op machines?  Is there separate electricity?  Will the dryer be gas or electric?

Happy New Year, and good luck!

@Mary Jay,

The price difference of $50k would mean approximately $238/month (4% x 30 yrs).  That's $2,856/year.  Two questions:  

1. what are the terms for the warranty the builder gives, ie what's covered and for how long

2. what will need to be replaced in the near term on the 30+ year old home?  Roof? HVAC? Plumbing or electric?  

It's all about the cash flow, which means what is left AFTER all your expenses.  You will have to do the math on which makes the most sense.  For example, if the roof was never replaced, you'll be looking at $12--20K depending on type of roofing and number of squares, etc.

Good luck!  (BTW, if there is a decent warranty on the new home, I'd go for that one, imho.)