All Forum Posts by: Tom Goans

@Aaron Sims,

Your question is a legal one that involves state laws and tenant rights as defined by the state where the property is located.

Please seek advice from a lawyer where the property is located. Anything else will only be a guess that could get you in serious legal trouble.

The lease agreement may contain a paragraph addressing your question. However, if the agreement is not an approved form in the state where the property is located, or drawn up by a lawyer in the state where the property is located, the paragraph may be incorrect.

Please be careful and respectful of tenant rights. Beyond legal issues, it is just the nice thing to do to build a good and lasting relationship.

@Matt B.,

I have read many books on the subjects of negotiating and selling. It has always been the suggested preferred method to offer no more than 2 (two) options.

For example:

• "Which do you prefer; this or this?"

• "If you agree to the terms of the agreement; please sign here - would you like to use your pen or mine?"

The above represent closing questions.

It is excellent for you to know as many of the limitless options as possible. However, offering more than 2 options when negotiating is confusing. Confusion causes fear. Fear kills the deal ... dead ... with little chance for revival.

By the way, the first step in closing is ask a question and then ...

SHUT UP AND LISTEN.

By doing so, you learn what the seller wants and needs, then solve the seller's problem. Otherwise, if you talk endlessly about many options, you appear to be more of a legend in your own mind with no real direction or solution.

Always remember, even when buying, you are selling. You are selling yourself and solutions.

Think of your signs as the first impression. They represent you and what you do.

Image, First Impression, and Professionalism are extremely important in any business and for any individual.

There are many articles and books written on Image, First Impression, Professionalism, and Marketing. Taking the time to read several on each subject and then forming your own opinion and style may be the wisest decision you could make.

Each person is unique and so is the situation. It is not necessary to wear a Rolex, but I feel it is important to dress professionally at all times.

The same hypothesis may be applied to the design of your signs. The signs are a lasting image of you and what you do. The same applies to all forms of marketing and communication you use.

For example, an embossed business card and stationary suggests something different to many people. I would not use them when trying to buy at a discount, but to a seasoned investor, it may stimulate more positive thoughts.

The same hypothesis can be applied to the design of your signs.

The business world has many, many challenges. Having an easier path to success is important. This can be accomplished by reducing any possible negativity, especially first impressions.

Many times while in a business, people ask me if I am the owner or manager. I attribute this to the way I dress and present myself. I doubt this would happen if I wore shorts, sandals, and a T-shirt.

Just the thoughts from an old-timer.

There is so much more to consider than just the price of the property.

I see numerous red flags from what I am reading. Especially with a seller in such a hurry to get you to commit to buying the property at $75,000 when you think it is worth $130,000.

If it were me, I would not spend another second considering this property ... that is unless you want to take the time to learn why this may be a bad investment opportunity.

• There is no such thing as "mint condition". I suspect there are many problems with this property waiting to be discovered. Look beyond the spreadsheet.
• Learn about the neighborhood, residents, and major employers.

It is very wise to seek advice from a licensed professional tax and financial planner to analyze and review each partner's 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.

• Dissolution of the business is one many forget.

Other considerations include:

• Death
• Incapacitation
• Spouses
• Children

And, yes, you will disagree on the smallest issues. The courts are full of such lawsuits.

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.

I was involved in a partnership where it was later discovered the major advantages of having a life insurance policy on each partner with the benefactors being the surviving partners.

May your future be full of great success.

• As defined in the Colorado Real Estate Manual:

Quitclaim Deed. A deed in which the grantor warrants nothing, conveying only the grantor's present interest in the real estate, if any.

Special Warranty Deed. A deed in which the grantor warrants title only against defects arising during the grantor's ownership.

General Warranty Deed. A deed in which the grantor warrants or guarantees the title to real property against defects during the grantor's ownership and as far back as a chain-of-title can be established.

• Every state has unique laws. Know the laws of the state where the property is located for a more precise understanding of the legal documents. Or, better yet, seek the advice of a lawyer where the property is located.

@Michael Lauther,

Your question and situation is extremely complex and delicate. Family issues can be extremely emotional and volatile. Almost in all situations, feelings are hurt - whether expressed or not. Some family members may feel favored or neglected.

I already see a huge issue with what is stated in your post - the ranging value of the real estate. As my father always told me, a property is only worth what someone will pay for it TODAY.

Because of the complexity of family issues and the emotions involved, it may be the wisest decision for all family members to have meetings with licensed professionals where the property is located. This way, each individual heir’s situation will be considered, all brought to the table, and options will be presented that best suit the needs of the total as well as keeping the peace.

Perhaps all family members can agree to sell the property to the one family currently living in the property and finance the purchase. This can lead to problems, but can provide the remaining family members a cash flow to pass on their heirs. If you consider this, it may be wise to hire a third party to collect the payments and send any notices required. Keep the other family members out of the potential argument.

There are many options to consider. Having meetings with legal and financial professionals would be extremely wise. Then, the blame is on them should someone become unhappy.

Best of luck in this sensitive family situation.

@Jeff Stephens,

I have sold many properties using the Lease with Option to Buy Agreement with great success.

My approach is All things are negotiable. With that in mind:

Please Seek Legal Advice From An Attorney

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.
• Every state has unique legally acceptable legal forms.

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.

As I first mentioned, the only way I sell real estate for the past 15+ years is by using a Lease with Option to Buy Agreement. The list of advantages is long.

Seeking 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.

• Every state has unique laws.
• Every state has unique legally acceptable legal forms.

The attorney will provide the best advice and options for your specific needs. The results will be legally drawn up documents for your use.

@Penny I.,

If you are seeking real estate investment ideas or just want to listen to great stories and lessons learned, "70 Cash Flow Ideas" by Jimmy Napier is EXCELLENT. Not all will apply to you or what you want to do, but you probably will enjoy listening to the ideas and experiences. This may give you ideas of what you can do in your market of interest.

Website:

http://garyjohnston.com/registration-and-products/jimmy-napier/70-cash-flow-ideas-by-jimmy-napier/

Have fun.