All Forum Posts by: Tom Goans

I would recommend you follow the decision of the court. If the court awarded you the security deposit, then it is yours without any further documentation.

Otherwise, if the court did not award you the security deposit, I would guess the standard state laws governing the security deposit applies.

I highly recommend you seek the advice from a lawyer you hire in the area where the property is located to get trustworthy legal advice.

You may be putting the cart before the horse.

In ALL of my agreements with the end result being the transfer of property ownership, there is a strong DUE ON SALE clause and major consequences for those who play games and try to avoid the terms of our agreement. The agreement also states who is to be living in the property at all times during the life of the agreement. Otherwise, the agreement can be immediately voided and any persons at the property evicted and trespassing charges filed.

If the seller of the property you are considering purchasing gets an attorney involved, most likely the agreement will contain the language prohibiting you from leasing or selling the property in any manner without the consent and approval of the seller.

Put yourself in the shoes of the seller. Would you want some stranger making a commitment to lease a property with the expectations of buying and then later leasing to another stranger whom you have no control over? The risks would be limitless.

I completely agree with @Robert Brubaker.

Moreover, time is of the essence. So is written documentation, which it seems you are doing.

Sadly, while insurance companies are designed to be our savings security blankets, too many times it requires the negotiating skills and knowledge of a lawyer to get results.

Who is legally and financially liable should not be debated in a blog. Even if you hire a lawyer and file suit, your attorney will probably never guarantee a win. Just the language of the section you quoted is debatable. Moreover, the amount of money you are willing to risk can influence the outcome. Time is the other major issue. Insurance companies are well aware of this fact.

Best of luck.

@Tia M.,

Be careful you are not setting yourself up for extremely financial challenges by opting for a short-term loan with the hopes of refinancing in the future.

Historically, the real estate market is very cyclical. What if it becomes more challenging to obtain financing in the future or the lending environment changes?

@Adam L.,

Please Seek Legal and Professional Advice

Your question is much more complex than you realize. It is also very vague.

Seeking legal advice from an attorney in the area where the property is located can be a wise and very economical decision considering the alternative. An attorney will assure you are abiding by the federal and state laws. It is not wise to consider any legal advice from someone who is not a licensed attorney where the property is located. Otherwise, the advice may be incorrect and cause you harm.

• Every state has unique laws.

@Justin Foster,

Douglas is wise and has professional experience.

It is my opinion that you should seek legal and financial advice from licensed professionals you hire.

Seeking legal advice from an attorney in the area where the property is located can be a wise and very economical decision considering the alternative. An attorney will assure you are abiding by the federal and state laws. It is not wise to consider any legal advice from someone who is not a licensed attorney where the property is located. Otherwise, the advice may be incorrect and cause you harm.

• Every state has unique laws.

The attorney will review your specific situation and then provide the best advice and options for your specific needs with a consideration for your future. The results will be legally drawn up agreements for your use.

It is also wise to seek advice from a licensed professional tax and financial planner to make sure the agreement structure best fits your present status, strategy, and future plans - including building an estate. It is one thing to make money; it is a completely different strategy to building wealth and a solid estate.

Business partnership and financial considerations may include:

• Business Power Of Attorney

• Medical Power Of Attorney

• Living Will

• Will or Trust

Legal advice from an attorney and a financial planner you hire will be the cheapest and wisest investment you will ever make.

Moreover, every investment, partnership, and individual is unique. There is no one correct answer. There are numerous options that must be considered and many costly mistakes that need to be avoided.

Seeking professional advice from licensed professionals who are knowledgeable about the areas in question can be an extremely wise and very economical decision considering the alternatives.

May your future be full of great success.

@Alma Mills,

Your very best option is personally learn the many ways to structure financing or purchasing and selling real estate properties. The ways are endless. Every property is unique, every situation is unique, every seller is unique, and your goals are unique.

Therefore, what will work or is acceptable to me may not be to you.

Finance options are basically limited by one’s creative mind. I would recommend doing a lot of reading on the subject from a wide variety of sources. Include conversations with seasoned investors with many years of experience. It is one thing to come up with financing ideas that work today, but a completely different consideration when you factor in future considerations and options to build wealth, security, and achieve your goals. Your life and business is ever changing. It is wise to structure your business with this in mind.

Education and Experience Are Critical to Success

The real estate profession is extremely complex with many intertwining segments.

Because of the complexities of the real estate business and the need to be more competitive by knowing more, education is critical to enduring success in any business - especially in real estate.

-How well do you know basic business fundamentals? Can you write a business plan?

-How well do you know the laws that you must follow?

-How well do you know the governmental procedures and requirements?

-How well do you know accounting and other basic business fundamentals?

-Have you met with licensed professionals to plan your business and future (attorneys and financial planners)?

Being the best prepared and informed will help to make your real estate ventures easier and more profitable. It can also help you to have an enduring successful future.

@Daniel Paloscio,

I will lease or sell and carry the financing in a blink of an eye to someone with an eviction on their record or have a bad credit history. The determining factor, I have a conversation with the person or people. There may be reasons for their situation.

• Bad things happen to good people.

• Some landlords are power nuts and abusive to tenants - the primary reason for so many tenant rights laws in every state.

• Some landlords do not know how to turn lemons into lemonade. I am extremely successful selling and leasing to people with financial challenge histories. Many do not have bank accounts and pay with money orders. Yet, they are excellent timely payers.

I once sold a home to a local truck driver. During 2-3 winter months, he did not work. The family was moving from a rental because of an eviction. I sold the home to the family with this understanding up front. During these layoff periods, I would let them skip paying the loan payments with a clear and written understanding that the loan was being extended.

They now own the home free and clear. We all won.

However Daniel, I did read something that raises my red flag about your applicants. CATS. Have you ever leased a property to cat owners? Once a cat has lived in a property, it will always have that cat smell. Sometimes, replacing the carpet and padding is not enough.

The flip side - you then have a property that is Cat Friendly. Advertise it as such. It may even bring a higher rent amount. (turn lemons into lemonade)

I do agree that your property should be considered the best value in the neighborhood if you desire less vacancy time.

Determine the value of your time and money. Have a rock solid determination of the investment and holding costs. Is this still a possible investment opportunity?