All Forum Posts by: Phillip Tillotson

I hope I can do this one day!

Closing at a bank will most certainly end up with the entire loan being called due immediately. I vote that you stay away from a bank!!

Your question is sincere, but there is not a 1 answer that will be 100% correct. Both have advantages and disadvantages.

Since you are a salaried employee I would consider time to be your determining factor. If you pick a deal that takes up too much time then you will not be able to move on to other deals because you will be too busy. Also, you would have added stress on your day job.

If you find a good rental in a good area with long term rents at a good price then take it. If you find a house that needs light rehab at a good price then take it....ect.....

Once you have enough funds to leave your day job then you can take more risks and focus on whichever niche you like the best.

If you are trying to convert a commercial to a residential then forget it. The city/county wont be happy about the cut in taxes. This means that they will most likely deny special use/zone variance requests.

This means that banks will treat it like a commercial property.

Now, had you said the other way around then I'd say go for it. City/county loves converting from residential to commercial IF commercial is the best use for the property.

Bill,

I agree that circumventing the agent is not a good idea. However, if the property is not under an exclusive right to sell contract then what would actually happen if the seller sold the property behind the agent's back other than the buyer/seller getting black listed by most agents?

If it is a solid rental in a solid area with solid renters then rent it!!!! Use the property as leverage for loans on other properties.

Using a stock index may help aid your decision. S&P 500 is at an all time high and recently wedged sideways. Monday-Wednesday we will know if the trend continues or if it breaks out and continues to the moon. If it breaks out positively then rent it. If it doesn't then sell it.

Each set of advice may give you a different answer. Pick one that you like and follow it to the nth degree. Makes decision making easier. (if you choose the second choice then know that my stop is 1865 before I consider it a downtrend)

8% is justifiable? That more than double what I pay with PMI. Those poor buyers.....

I have heard that Missouri is squatter friendly. (hear say that may be wrong)

I would highly suggest that you not buy the property until the court has made a decision.

Elements of Adverse Possesion

1) Actual Possession: maintaining the property and improving the property

2) Hostile Possession: Occupy land with intent to own and not in subservience

3) Open Possession: It must be obvious that the person is occupying the property

4) Exclusive Possession: Individuals occupying land for their own use

5) Continuous Occupancy for 10+ years

If your squatter meets those criteria then they might win rights to the property.

That is unfortunate. It will take time to find a private lender. When you do, the terms will most likely not be as favorable for the buyers. Sounds like an all around bad deal for the buyers.

To recap, they may be homeless while you try to find a private lender and, the terms most likely will not be as favorable.

Why not make a lot of money on rent and only buy one rehab house? You'd end up with a lot more money at the end of it all, AND you would be doing the right things for the buyers.

Going to message Bill about this one to see what he thinks.

I agree with Brian. Lease option is the correct solution for the situation. Be careful though. I don't believe that you can accept rent and apply it as credit towards the purchase. The buyers will need to be aware of this so that they wont attack you later for not informing them.