All Forum Posts by: Marc Winter

78 showings in the middle of January in NJ?  Wow!  If they all say it's listed too high, your agent might be ask them "about how much too high?--what price would you invest in and own this home for?"  Serious buyers usually are NOT afraid to make offers.  Again, 78 showings? 

I'd recommend getting out on the street and knocking the door.  "Is your house still available for sale?"  Also ask if they are still listed with a broker; if so you will probably have to deal through the broker.

It pays to make that effort, because so few do.

You should have an estoppel letter from the current owner prior to closing stating all relevant information on tenants, including security deposits, monthly rent, who pays what utilities, copies of existing leases (if any) etc.

At closing, you should receive rents pro-rated to the date you close, and transfer of security deposits held by seller or manager. 

Before  closing, we send a letter and hand-deliver to tenants to confirm the info from the owner's estoppel letter, and tell the tenants to contact us immediately if there are any questions or misunderstandings.  

Example:  seller says there is no security deposit, tenant says there is.  Proof of that deposit would be required; copy of lease stating receipt of deposit or receipt of payment. 

We once had a seller tell us that the tenant didn't pay rent one month and seller used the security deposit as rent, so there is no security deposit.  Don't buy it--rent is rent, security deposit is security.  If the seller allowed the tenant to remain there, tenant still has a security deposit.

Let tenants know that a new lease will be offered to them immediately following closing. Hope this helps you.

Inter-vivos revocable trusts which, according to

Garn-St. Germain Law, prohibits a lender from enforcing a due-on-sale (or transfer) clause.

Seems to me, in my non-lawyer experience, the two key words here are 'fraud' and 'court'.  Fraud, if proven, can get a transaction turned upside down.  And 'court' meaning judge, can do almost anything they want!  Of course, there are appeal mechanisms to whatever the ruling.

A land trust as an entity may end up being pierced just like an LLC or corporation when there is a lawsuit involving a fraudulent transaction involving ownership.

Again, I am not an attorney, and am not offering legal advice, but I have successfully used land trusts, llc's and other title-holding entities over the years.  Lesson #1--anyone can sue you at any time, for almost anything.  Be prepared, know the rules, play honestly and have a good attorney.

Mike p, can't help with that question directly, however in our area (NEPA) PAWC is the water utility. They will not allow new sub-metering, and require a new water main to be run from the curb. Their thinking is that it is easier for them to shut down one unit than the entire building. Of course that makes it cost prohibitive to separate meters. Just a thought to keep in mind for future.

Corbin, there is always a way.  Sometimes it just takes some unconventional / creative thinking. 

For example, if you have doubled your equity, you could use hard-money lender for short term cash to acquire another property, then refi #2 (assuming you use a different asset holding entity on title) and pay off h/m lender.

Amy,

Thanks for the reference.  You are spot-on about Scranton re: fix flip.  Outside the City limits, lots of potential for that.  Inside City, one can definitely cash flow from properties, however we are talking about c+ to d properties in general, so the tenants will be in that range as well.  BTW, I have been in touch w the investor--thanks again.

Hi.  I'll be happy to help with any questions you might have about our area here in NEPA.

Best,

Marc

We post a list of the criteria used in processing/approving an application, along with documentation that will be required from applicant.  We also insist on  renter's insurance.  To keep from loosing a 'backup' applicant if the first approved delays lease signing, we use something like this:   "Once approved, applicant will have "x" days to sign the lease, or next qualified applicant will have that opportunity".  The above can be posted in your office, web site or given to applicants along with your application.  Keeps everyone on the same page.