All Forum Posts by: Marc Winter

There are a few ways to accomplish this transaction: a real estate broker acting as a transaction coordinator/facilitator (not representing the buyer or seller), a real estate attorney, and/or a title company.

I would opt for a licensed broker to handle the contract of sale, and hand it over to the title (or escrow) company.  The broker might also be able to recommend some lenders that would help you with financing.

To your other question about the type of financing, it would depend on what you plan to do with the property once you have full ownership.  A second home would be financed somewhat differently than a rental property.

Advice:  speak with a broker, an attorney, and a title company.  You'll get the hang of it as your discussions proceed.  

Keep investing and moving forward!

Fortune smiled on you with your previous long-term tenant.  Protecting yourself (as landlord) from utility cost spikes when there are no separate meters is a common question.  

The answers are to price in a higher utility cost into the rent, or, bite the bullet and separate the meters.  

The only real way to protect yourself is to have the tenants pay for their own utilities.  You'll sleep better and it will increase your property value.

This is a common problem, but there are several actions we can take to curtail it:

Follow the l/t regs in your state to properly notify the tenant about any damages that will be deducted from the security.  In PA, we have 30 days to send written notice with details of damages.  Follow the same process for skipping on the last month's rent.

If no response from the tenant within their legally allowed time, file in your local l/t court.  Assuming you win your case, or they don't show in court and you get a default judgment, RECORD that judgment at the county recorder level.  That will alert other landlords that the tenant has a rental judgment.  It will also show on most credit reports. Additionally, you can send that info to your preferred collection agency.  

The recorded judgment hinders the tenant from making a major purchase (think real estate), and will ding their credit for years to come. BTW, we have received some nice checks years later from a few tenants who decided to pay off their judgment to close on their dream house.

Does this practice often result in you collecting some money? No, not often. But, as landlords, if we all do it, our tenant screening will show those red flags.

Keep investing and moving forward.

Do you have equity in the property?  Will you make a profit after all selling/closing expenses?  

Folks don't go broke taking a profit.

That said, if real estate is a long-term business for you, maybe start portioning cash flow into capx so these issues/expenses aren't as worrisome. 

Keep investing and moving forward!

A few suggestions:

Get a Job, Borrow from Parents/relatives, Get a partner for the deal, or (trigger warning: not PC)  renounce US citizenship, cross the border illegally, and get all the government money you need.  

PS:  Think about an umbrella insurance policy.

Life lesson:  anyone can sue someone at any time, for any, or even no reason.  You can camouflage the target on your back a bit by holding the title in a living trust.  But that's no guarantee.

And, you can follow all good screening procedures, professionally run your business, and don't get too cozy with your neighbor/tenant.

After that, roll the dice.  Just don't worry about it--do the right things at the right times and you'll likely be fine.

Keep investing and moving forward!

With so much fraud and crime in the world today, I understand why they want to keep a copy of your ID on file.  

However, if you feel uncomfortable supplying it and they insist, then walk down the block to the next brokerage.

If you buy the foreclosure of a junior lien (ex HOA fees or 2nd mortgage), then a senior lien (ex 1st mortgage/note) will survive the foreclosure, and still be attached to the property.

Yes, I'm sure the lender would love for you to pay it off.  Make sure you get a "satisfaction of mortgage" and RECORD IT!  Once the title is clear of those pesky old liens, you'll be good to go.

This is not legal advice, so speak with your attorney for actual procedural issues.

Keep investing and moving forward!

Folks don't go broke by taking a profit.  Sell now and pay the taxes; our government needs the $$$ to give to those in more 'need'. 

Or be patient, wait until the 2-year window has opened for you, and see what's up next year.  

Good problem to have!