All Forum Posts by: Jennifer Ryan

Hi @Rickey Wiley 

In five years in the DFW market, you should have built up more equity than that. Call a Realtor & offer them a few hundred to do a market analysis on each of your properties. I'll bet they are worth more than you think.

On the HELOC; if you have a lot of equity in your primary residence, it's a great way to get temporary funds. It's a line of credit so you can use it, pay it off & use it again etc. The rates are low & there is no origination fee. HOWEVER... Be sure you can pay it off for obvious reasons. Also, you can't move or sell your primary residence until you pay the HELOC off. 

Loved Michael Temple's approach too!

Good investing!

Jennifer (Jenn) Ryan

Hello Ali,

I wouldn't let the Dallas, FW foundation fear keep me from owning properties in DFW. I own several here. Yes, you'll likely have to address foundation repairs at some point. It's a fact of life in this area, but most buyers know it so, they don't run like they would somewhere else.

Usually the repairs are not horrible meaning, a few thousand dollars. Although my worst case, was a duplex requiring 21 piers w 6 of those interior. It was a mess! That property cash flows though & w the market appreciation the last 5 years, I've built up a lot of equity.

So, I think the more important question is will your property cash flow & is there good, long-term appreciation? You might hire an experienced realtor for a few hundred, to do some market trend research for you before you decide.

As for maintaining moisture… as Neal mentioned, there's no sure way but, consider installing a permanent soaker hose system around the foundation (to make it easier on your tenants to cooperate.) Then put it in their lease; highlighted and then remind them to turn is on, especially during the summers.

Again, you’ll probably still have some future repairs to address, but you'll deal w that if & when you  sell.

Good Investing,

Jenn Ryan

Teacher at heart.

Oops Alex .

I think it's a good idea to run it by a RE attorney even if it costs you a few hundred dollars. I believe the previous landlord legally has to account for those funds to the tenant whether or not he sold the property. Please keep us updated on the outcome and good luck to you.

Jenn Ryan

Agree w the majority to keep it out of an LLC because that turns them into a company & the insurance will be higher and typically with less coverage. Plus, if you ever want to refinance, you'll be stuck going commercial.

Wishing you greatness w your investment!

Here's my 2¢... 

Being licensed only goes so far unless you have them pull the permits... I'm a permit proponent in major renovations because it's great CYA if there are problems  after you've sold.

Plus, the Seller's Disclosure will ask.

 Very interested in the outcome! A Subject To arrangement can be a great way to acquire properties while helping distressed Sellers but I thought that the Sellers were stuck until the Buyer satisfied their loan; by either refinancing, selling etc...  It would be wonderful if there's a work around! 

Hi Hunter. Disclaimer first. (I am not an attorney and cannot give legal advice. I am providing general information only.)

No one has mentioned this so here goes.   It concerns "tenant" occupied properties that we’ve purchased in foreclosure…

In June of last year, the Protecting Tenant at Foreclosure Act (PTFA) was brought back. It’s a law designed for tenants to keep them from being thrown out w little notice, if the property they’re renting was foreclosed on. It’s for any federally related mortgage; Fha, Fannie Mae, Freddy Mac.

In a nutshell, if the tenant is current on their rent, they have the right to live out their current lease or a minimum of 90 days. Not sure if the time starts from when you bought it or after you notify them you're the new owner though.

They are entitled to their deposit back according to the lease as well.   And yes, obviously, you'd be out that money...

Texas Association of Realtors has an informational form that is specifically for tenants in a foreclosed property. TAR-2220

Always be learning...

Jenn Ryan

What Beau said. I'm sorry for your troubles. Family always seems to "change their mind" after the fact. 

@Hao Dinh

(This is only offered as a general discussion and not intended to be considered professional advice.)

The buyer’s relative/relatives can wire the funds to the buyer’s account or they can write a check to the buyer. There's no waiting period other than the time the receiving bank might hold the check until it clears.

Each person can "Gift" $15,000 a year without paying any gift tax. Say it’s coming from the buyer’s parents… If they are married, filing jointly, they each can give $15,000, or a total of $30k without any gift tax. The Giver’s would fill out a “Gift Tax” return, not the buyers. Also, I think there’s something like a one-time life-time gift amount that could be applicable so I would have the Giver’s speak to their accountant about how to file their taxes to save them money.

Next, the mortgage company will need proof of where the funds came from like, a copy of the relative’s bank statement or a copy of the cancelled check. They also might want the buyers to write a letter of explanation. (See link at end)

Your buyer’s Mortgage officer should be able to tell you exactly how to handle the situation. Have your buyers give him permission to speak with you.

In the mean-time here’s a link to a great little article on the subject.  The Rules for Documenting Mortgage Down Payment Gifts

Hope this helps.

Jennifer Ryan