All Forum Posts by: Pat L.

I don't know about AZ but up here if you offer it with all mineral rights etc you will definitely spark some " fracking " interest...

We had a couple fall through
We had given good size earnest $ deposits.
But apparently HUD had a problem getting clean title so cancelled the deals returning our $.
Several months later the properties came back up but we had moved on.

We are doing one now pre '78 & painted with oil base!!!!
Also with wall removals/header installs between the living room, dining room & kitchen. Plus the installation of recessed lighting etc I had my guys put up 1x3 strapping & 12 ft drywall. Done in a day & a half.

As the cliche goes 'cash is king' & if you know what you are getting into you can blow the others away with fast closings without the proverbial BS contingencies.
Congrats

We bought two properties in the last 24 months that had a similar scenario.
the first was a foreclosure that sat for 5 yrs with a number of low ball offers being refused.
It was $58,000 owed. We went in l $21,000 & got it but had mold etc to deal with & we sent them pics to confirm the deteriorating condition.
The taxes were paid for the next year in advance by the Bank.
The next one was a 3600 sq ft mansion built in 1830 on 2 acres near the lake. But it was in immacluate condition.
it was used as a half way home for wayward girls & owed for 25 yrs by the Catholic Missions.
They were unloading it for $69,900 but my buyers wanted it bad & we bid $87,000 beating out all the other low ball offers.
The taxes were also prepaid for the next 24 months.

I have a couple more but they are ones that we took back after holding firsts for 5-7 years. The best was a couple who split up & walked away after doing over a $100,000 in renovations to my old batchelor days home that I sold them. We paid them $45,000 cash for keys & they left all the high end appliances !!!!!! & my wife still thinks they would have walked for less???
I love this business & all the surprises it holds.

Check with your assessor. I bought a home for my 19 yr old daughter to own.
the assessor showed up with a camera as I was gutting it walls windows doors everything.
The assessor explained to me that the city had a program in place whereby the assessment for a home in need of extensive repair would be adjusted & a moratorium on tax increases would be good for 5 years. School taxes would however rise 5% but stay at that for the 5 years.
The home was assessed @ $159,900 & I got it from a bankrupt seller for $120,000.
Bottom line was she drop the assessment to $100,000. It blew me away but up here in NY it saved my daughter a lot in taxes.
However, in a nearby city we bought a home assessed @ $24,000 for $20,000 @ a tax lien auction put $7500 into repairs & they reassessed it a year later for $78,000 although the neighboring homes were assessed in the $50's. Those we sold it to for $39K had to sell it as the taxes were too high to make it a viable rental.

I think I overwhelmed her with all the documents, a complete set of books & a 118 - 125 page returns.She had a very difficult time understanding how I do business & the number of properties held.
I still think the audit was primarily initiated to nail me with SE taxes, which is what I ended up owing.

Lease To Own

Our property mgt LLC is a MMLLC but she did get me on 'self-rent' & became fixated on it. I was denied the expense but it was minimal.
The equipt lease agreements were fully documented & she reviewed the MMLLC operating agreement & resolutions in detail.
We also split some long-term hold property into a land cost/ leased back as several Properties exist on double lots & for asset protection etc. That got through.
She left the room on a number of occasions to defer questions to a senior colleague.
But I did notice she barely reviewed the piles of receipts I had assembled using NEAT but used the front sheets reports NEAT generates to summarize all the expenses.
Mileage was a big deal, if it was specific to a property she allowed it but well documented mileage to do other business was in most cases denied but it wasn't worth arguing about.
It was an exhausting three days but I leaned a lot.

My property management LLC buys the appliances, water heaters furnaces etc then leases them to the LLC that owns the property.
I sat through a 3 days IRS audit for the years 2009 & 2010 & it flew without objection.