All Forum Posts by: Randy E.

You purchased from the bank which means the previous owner had his property repossessed by the bank.  It is possible he is not an impartial witness.  He might be angry at the bank for repossessing his home, and angry at the new owner for enjoying his old home.

If you haven't seen the video, ask to view it.  Take a good long look at it and make certain that the burial is taking place at the property you own.  It's possible the previous owner is getting his "revenge" by getting you excited and filing suit against the bank -- just causing unnecessary grief for both you and the bank.  Check the time stamp on the video to make sure it was created between the time the property was repossessed and when you purchased it.

Even if it is, there is no way the previous owner could know what was buried, unless he was part of the crew doing the work.  Or unless he had those items stored at the site and he has personal knowledge of the contents.  In which case, he might be liable for not properly handling hazardous waste before the bank repossessed the property.  

Whatever the case, the first thing to do after viewing the video, is to determine if anything is actually buried on the property.  Hiring a lawyer seems a couple of steps away at this point.

Initially I thought the tenants were being troublesome.  Now I think it's the house that is troublesome, for both you and the tenants.

 Aye.  Choose your battles is my motto when it comes to "late" rent.  I would add more, but you said it all perfectly.

 What state is the property in?

 Too many red flags for me to get too happy about this right now. 

1- He and his brother bought it, rehabbed it, quit claimed to father, and now want to sell. Why?  His stated reason makes no sense.  Especially because the only real concern if his father passed would be that his mother was not able to manage the rentals.  However, with at least one son living nearby and in the RE business, he could easily manage it for his mother.  That stated reason rings false.

2- He is experienced in the RE business, yet he wants to give up a $35K/yr money maker?  

3- Tenant in unit#3 handles a lot of extra tasks for only $50/month.  Assume that tenant moves out the month after you buy the property.  What will it cost for you to pay someone to do all the yard work, shovel snow, and ensure the trash cans are moved back and forth?  Also, if this property is in a city like Cleveland which fines landlords obscene amounts for trash cans being left curbside more than a day, you could be looking at additional costs.  Ignoring the possible fines, you might be looking at a change from $50/month to $150-$200/month.

4- "exclusively" ... "This is the one!" ... " -- the general phrasing of the message is too much of a hard sell to me.  

5- Definitely find out when his family acquired it.  Also, find out exactly when it was transferred to his father's name.  If this was held for many years, it lessens somewhat my concern raised in point 1.  If, this was acquired, lipsticked, and offered "exclusively" to you in less than a 2-year period, that screams "BE CAREFUL!".  If it was held for years in the sons' names, and only recently transferred to the father, you have to wonder why.  I would.

6- "I am working on getting you the expense report" -- Working on it?  This is a property bought by him and owned by his father.  What is there to work on?  He should have had the expense report on hand when he sent you the offer.

7- A lot of rehab is listed.  You definitely need eyes on this to verify the work is quality work.  Something doesn't quite add up. 

Maybe I'm cynical, but this smells fishy to me.  It might be a good buy at the right price, but I have a feeling the right price is at least 1/3 lower than the asking price.

@Kevin Brandon, was there a legally drafted will that explicitly states the great grandson is to receive the property upon the death of the great grandfather?  Was the will filed with the county clerk?

If there is no will and if there are any other living relatives of the deceased great grandfather, this might not be as simple a process as the great grandson wants it to be.

 I've heard some developers do not construct streets as robust as cities might require.  If the subdivision is not part of the city during development and construction, the developer might be able to get away with spending less to construct lower quality streets.  And that approach might apply to other aspects of the subdivision.

Also, I've heard some larger developers entice cities to approve projects by donating land within the subdivision land for public parks, elementary schools, fire departments and such -- some go so far as to actually build these extras, saving the cities even more money.  I would assume that subdivisions annexed years later would not have to provide such perks.  So, the developer saves money up front, but still manages to convince buyers to move to the subdivision with the promise of a delayed annexation.

@Angelica Rivera,

I take the approach @Jay Hinrichs mentioned.  I understand the cautious approach, and it's what I would recommend to other landlords, especially those in states that make it more difficult for landlords to conduct business.  However, personally I like to be able to rely on basic common sense.  

While in the presence of a police officer the tenant told you she would be out by 6/30.  On or after 6/30 (I assume) you went by the property, again with the police, and ascertained the tenant had indeed moved much of her belongings out, the utilities were off, the unit appeared abandoned, and the neighbors had not seen the former tenant for many days.  At this point, my inclination would be to change the locks and begin cleaning up for turnover.

I won't advise others to do that.  I would tell you to go through any and every legal step to regain possession.  It may take 60 days.  It may cost $100-$300 in court fees.  It may result in an additional 2 months of lost rent.  But, you can then be 100% certain that you will have no negative legal ramifications.

But for myself, I'd photograph the unit as she left it and the items she left there, box her remaining items and store them in a closet for now, clean the unit and start showing it to new applicants by mid-month.  If the tenant did not return for her now-boxed items by the time the new tenants were ready to move in, I'd put the boxes at the curb for the sanitation department.  I don't need for anyone else to tell me it's raining outside if I'm standing outside in the rain.

But I'm not advising you to do what I'd do.

 Each time they say "no", raise your offer by 10%.  Eventually, you will reach a price that they will agree to sell.

 Wow!  Talk about burying the lede.