All Forum Posts by: Mike Cumbie

Hi @Harlan Cox

Welcome to the forums.

I think one of the difficulties you are having is based on the question you are asking. The question was "How do I back out of a wholesale deal"?

Not speaking for anyone else, but that question as asked sounds like "How can I offer money for something and lock it up so no one else can get it and then if I decide I don't want to go through with it still keep my money and walk away leaving them holding all the loss" to me.

Not sure if it was meant that way (I doubt it), but that's the way it comes off. That way of thinking scares a lot of people because it can easily ruin someone else. Picture someone going to your grandmother and offering to buy her house and putting 60 days where she can't sell it to anyone else but them. Then finding that after 60 days the person says, well I guess I was wrong, I can't find anyone that says it's worth that price (plus my fee), sorry. Now she has lost a lot of time (perhaps the best selling time of year, she doesn't have the money she needed to put grandpa in a hospital for surgery and the person just shrugged their shoulders and walked away).

So all that being said the education part is learning how to determine "value" of a property. In my opinion that is the single most valuable skill in this game. If you know the value of it all fixed up, a reasonable cost of how much it will cost to repair, a value of taxes, realtor fees, Hoa fees etc you can make real informed deals. Those deals are going to be so right you would ask your own family to buy them because you know they are solid. Not think they must be a good deal, but know with facts they are a solid deal with low risk. So if you can't wholesale them off you are going to fight and kick to buy it yourself because you know the money is there. If that is the case you don't have to ask how to "get out of it".

So I think that is where you are finding the resistance you are seeing, instead of asking "how to get out of it" ask "How can I determine the real value before putting it under contract".  Because if you are not prepared to take it yourself don't lock it up.

Just my 2 cents and good luck in your investing.

Not normally a friend of the Craigslist ad, but in that case I may just have to do it. List it as a take all and you should find a person who owns a resale shop who will come clean it out. You could also head off to one of those storage locker auctions and when they are all done mention your situation to people standing around. I am sure someone with an empty truck who didn't end up spending anything will come take it all. Just snap a couple quick pictures to show what you are looking at.

Good Luck!

Hi @William Slater,

For a homeowner it looks like it could be a good deal, they buy it and have 75K to put into renovations and some sweat equity and they are in a nice house. Problem is that there isn't enough meat on the bone for an investor or flipper because it means usually two closings and holding costs and all sorts of things that eat up that 75K real quick. In my personal opinion in this instance I would recommend to them to get a realtor and have it listed on the MLS where they will off load it to an owner occupant. You are not always going to be the best person to help them and in this case it looks like a more conventional route would better suit them.

Good Luck in whatever you decide.

Her best bet is to just write an open letter to the community:

Dear HOA,

As you are aware I am being forced to leave the area due to my job. Since the value of the property has declined so much since I purchased it I am unable to sell it for even a modest loss and would have to take a bath on the entire property. My preference would be to rent it until the market returns and the value gets to somewhere within reason.

You have made it clear that the option is not on the table. Luckily for me though I have a family member who was jailed for crimes against children and having a difficult time finding anyplace to rent to him. I figured I would allow him to stay there free of charge as a caretaker to help maintain my residence until I can return. Seeing as we are related and a "family unit" it should easily fall within the law. I am sure the property values will not take a hit from being included on the offenders registry, Class III is the low one right? I never did understand those things.

Anyways feel free to stop by and say hello when he is there, he really is a nice guy once you get past the blank stare.

Thank you!

Ahhhh Thanks @Account Closed

I couldn't come to grips with why you would sell a property and then restrict usage (outside mineral rights or air rights). The whole HOA thing makes a whole lot more sense.

Thanks!

Hi @Stevan T.,

I guess my question is to what end? Are you looking to sell a property but maintain control of it's usage?

I guess that depends are they teenagers?

Hi @Rick Santasiere,

Just to make sure I am on the right page. You are asking if it's a good idea to rent to 10 lawyers or perspective lawyers? Who will all be sitting around brainstorming about ways to get money from others while having drinks next to your stairwell? Just let that sink in for a minute.

heh, good luck in whatever you decide

I understand your point @Max James,

However if I was moving to an area in 6 months. And I looked for an apartment and found one that fit all my criteria (Close to work, good schools, had a pretty deck, walking distance to bus route, ground floor, laundry on site) and the person said it's yours on June 1st. Give me X number of dollars sign this we are locked in. I then get my work transfer, pack up the kids and have the movers all loaded up with a plan on showing up on June first to get the keys. We pull up to the door and there is a tenant in there, workers carrying pipes in etc we are going to have a problem. Most likely one of those problems that involve lawyers and judges who already generally dislike landlords. I can see where breach of contract and emergency housing and moving expenses and all sorts of things would add up on a unit you are already losing money on working on an eviction. Now you just lost a couple extra months (plus advertising, plus waiting till it is filled again).

Personally I don't believe in advertising until it's ready or at least vacant and planned for repairs/paint (or I suppose if I had a building I had something comparable I could give up at that time) but each person has to judge their own risk.

@Virginia H. brings up an excellent point. If you currently have it rented and you happen to know they are moving out in 6 months so you plan on renting it out, what if they decide not to leave and you have to start eviction procedures? what if they rip out all the plumbing? What if they destroy the floors?

Not only do you deal with those issues but now you have a contract for an apartment that you are obligated to provide. It is going to cost you even more to "make them whole"