All Forum Posts by: William Coet

Hello!

Why are people paying these prices!?  They have been for years!  Numbers don't pencil out for a 30 year mortgage, but property still sells!  If the buyers are cash buyers why don't they just put their money in a CD and earn 5%?! 

Details:

I am looking at a market where for years multi-family has been selling for a 10x multiple of gross rents.  With today's mortgage rates a 30 year mortgage doesn't even work!  Nonetheless, the properties continue to sell! 

Why?!

Who is buying these, and why?! LOL

Thank you!

Quote from @Chris Seveney:

Quote from @William Coet:

Quote from @Chris Seveney:

Quote from @William Coet:

Hello,

We would like to offer a homeowner a reverse mortgage and lifetime use of the home.  There is a good possibility there is no insurance on the house because it is owned outright and the owner may not care.

If we are paying the homeowner a reverse mortgage we will want to be sure it is insured.  How can we guarantee that it will be insured and what can we do it it lapses?

Thank you

 be aware that you cannot do a reverse mortgage, there is special training, and licenses required for both you as the lender and the borrower. It sounds like you want to let the person live there for as long as they are alive and then the house converts to you. What I have done in this situation is I acquired the property and then had the individual sign a long term renewable lease and the cost was $1/yr + the costs of insurance and taxes. 

 Chris, Thanks for the reply.  I would certainly like to buy the property.   BUT, the homeowner is stubborn, a hoarder, and it's her childhood home.  She will be very wary of any deal that transfers the deed out of her name.  This is a tough one that I have been trying to figure out for several months now!

 why not just wait till she dies.... What is the rush, especially if she is still gonna live there?

 I'd like to offer her a financial incentive now.  Otherwise, who knows what will happen with the house.  She may give it to the church.

Quote from @Chris Seveney:

Quote from @William Coet:

Hello,

We would like to offer a homeowner a reverse mortgage and lifetime use of the home.  There is a good possibility there is no insurance on the house because it is owned outright and the owner may not care.

If we are paying the homeowner a reverse mortgage we will want to be sure it is insured.  How can we guarantee that it will be insured and what can we do it it lapses?

Thank you

 be aware that you cannot do a reverse mortgage, there is special training, and licenses required for both you as the lender and the borrower. It sounds like you want to let the person live there for as long as they are alive and then the house converts to you. What I have done in this situation is I acquired the property and then had the individual sign a long term renewable lease and the cost was $1/yr + the costs of insurance and taxes. 

 Chris, Thanks for the reply.  I would certainly like to buy the property.   BUT, the homeowner is stubborn, a hoarder, and it's her childhood home.  She will be very wary of any deal that transfers the deed out of her name.  This is a tough one that I have been trying to figure out for several months now!

Quote from @Joe Homs:

@William Coet you can always insure it yourself.  Have you checked into a Life Estate, instead of a Reverse Mortgage?  Or is the Reverse Mortgage coming from a bank?

Good Investing...

Thanks Joe,
I have not looked into a Life Estate.  I want to do whatever will make this particular homeowner comfortable.  The house is in terrible condition, she is a hoarder, and has no dependents.  She also does not want to leave the house.

Hello,

We would like to offer a homeowner a reverse mortgage and lifetime use of the home.  There is a good possibility there is no insurance on the house because it is owned outright and the owner may not care.

If we are paying the homeowner a reverse mortgage we will want to be sure it is insured.  How can we guarantee that it will be insured and what can we do it it lapses?

Thank you

Hello,
I plan to make an offer on land but want time to research the chances of attracting a solar company.  
The listing brokers standard offer does not include a feasibility or due diligence period.

Questions
1. How can I include it in the offer?  Should I add it as an addendum? 
2. Is there standard wording for a feasibility period that I can include in the offer?

Thank you

Hello,

What clause would be needed in a purchase offer that would allow time for due diligence to contact solar companies that may be interested in an installation?  The parcel is on a power line that a recent solar installation and future solar installations are planned for.

Thank you

Quote from @Robert B.:

You could do a standard option contract…how big is the parcel?(s) you’re going to need a lot of acreage as utility scale solar typically starts in the 500+ acre range.

It is 100 acres. A solar company recently installed a 30 acre project just a few miles away on the same power line that apparently pays the owner 45k/yr.

Hello,
A parcel of land is for sale that is on a power line that other solar projects have been developed on.  It would likely attract a solar company, but not sure yet.
Is there a way/clause to make an offer to get time for due diligence to contact solar companies?

Thank you