All Forum Posts by: Chris Ukachukwu

Dateline: Gary,IN (GI, Michael Jackson's birthplace)

I have a brick 4-unit rental property under land contract since 2007 but the owner wants to be bought out ASAP. Sometime around the beginning of 2011 I posted an appeal on BP for a notes buyer to look at this property and "take over the note" from the seller as it produces good positive cash flow. I really want to keep it and can't find the cash or loan from banks.

I received about 4 responses out of which 2 were serious (in my estimation). Both leads came from BP. One of the responders seemed a bit more aggressive and focused and I pursued it and connected him to the seller. He seemed serious - sometimes calling twice a day. I was more impressed with him than the other notes agent who seemed hesitant and was low-balling. He asked for payment records and deeds and all kinds of docs which were provided to him. At the point we were expecting to simply proceed to closing, the guy stopped calling. Dropped out cold. No explanation. Won't respond to my inquiries to date. I hope he's reading this. I was appalled.

We took on the 2nd guy. He asked for different things, we paid for appraisals, then revised his offer downward. I was surprised that the seller agreed to his even lower offer. Provided proof of liens clearance and property insurance and the 2nd guy went AWOL as well for over a month now. No explanation. Won't return calls or emails.

I am frustrated at how shady these guys turned out to be. No sense of professional pride, not even to a fellow BP'er. I feel sorry for the seller. I WANT THE PROPERTY and have invested a significant amount of money to upgrade the plumbing, heating & electrical systems and replaced all the windows. It still needs a few things but it's a solid investment and a beautiful property worth (conservatively) $75K even in this mkt.

He was willing to accept ~ $40K buyout and these clowns (sorry!) played around with our time and efforts and melt into the darkness.

What does it take to find a serious notes buyer in this market? Any ideas?

Following my posting the question I called the seller's atty to ask if I could purchase it on a s.t. note from Seller. He's supposed to be checking with them and get back to me. He may be toying with me but also, the seller gets nothing come July.

Steve,
I have the title commitment from the seller's attorney which indicates the liens. Did I understand your question?

I am looking at purchasing a SF REO property that needs about $7K worth of repairs. Seller (lender) is asking $11K and would sell to me for $5K but there's a catch. Property was sold for tax liens (about $15K) and redemption expires in July '11.

I'm willing to pay cash for the selling price but have no $$ for the lien redemption. Is it at all possible to convince the seller to give me a 1 yr note? Alternatively, can anyone find a note investor to do the deal for me it over 5 years or so?

Thanks!

Congrats! Looks like a gem. And the numbers make it look even better. Is the fam room in the basement?

Either way, I think it may yield better result as a separate studio unit if it makes sense for the rental market (nr college or downtown).

If still considering flipping, think of sending out a sale blast and maybe trying an open house for the next week or two.

The purple is cool, not overpowering. I won't worry about it if I were you.

Good luck!

At this point, I'd love to save my residential rental property from foreclosure and the lender is willing to accept a SS offer for about 50% of what is owed. But I don't have the cash to purchase it and I don't know anyone who can lend the money. Is there ANY OTHER WAY I can do this and avoid the foreclosure. Time is almost ran out.

Thanks for your helpful reply, Mike. I still need to know, if you can help, how to track the tenants down.

Clarifications:
1) I NEVER signed anything with the tenant. I know, it's a huge fumble but one that I undertook as a gamble and I lost.

2) I requested the original lease from the owner, at least twice and he either couldn't or didn't want to supply them. He kept promising to do so and I really didn't hound him as I arrogantly thought this tenant was actually reformed and grateful. I couldn't even guarantee the correct spelling of the tenant's name, let alone other legal information.

3) I mentioned that the tenant must have been aware that the owner was out of the country because she used to call me a few days to the end of the month to come and get the rent but this time I called her on the 2nd and she humbly asked mt to wait till Friday (another 3 days). She promptly called me Friday to come and get the rent. When I went, I was told by her family she was out. I had my first bad feeling. I called her phone and reminded her that I staked my professional credibility to vouch for her loyalty and she was jeopardizing it.
The next day, she called to apologise and to know if I was coming to get the rent (hoping I couldn't), and I bluffed and said I could be there in 20 minutes, then she changed and said she was at a family gathering. I was upset and I threatened her with eviction but I think she knew that I couldn't legally. She was just a manipulative malcontent who needed to keep drama in her life.

4) She played this game for the entire 6 weeks - alternating between "remorse" and indifference. I didn't have the legal locus standii to file any eviction suit against her and . The last time she called me was days before the owner was to return, and she told me her tax return was en route and she apologised again and thanked me for being patient and understanding.

My beef is both with her and the owner. The owner didn't provide me with adequate tools to do my job of covering him effectively and for that he paid. The tenant was just a self-centered, vindictive, trouble-loving user.

After all that, I'd like to find a way to direct a lawsuit to her (new address) and then turn the decision of actually acting on it over to the owner. I appreciate any/all feedback. I hope Lefty is still reading.

What service do you or any of the readers use to verify tenants background/public records? I need quick online tenant screening/verification resources.

LONG STORY SHORT:
A bad tenant owes and causes damages/loss to the tune of over $5000 and fled in the middle of the night. How can they be tracked down so they can be sued and held responsible?

LONG STORY:
I helped an owner source tenants for 2 of his units in the same property. I think he was satisfied with my services and at that time wanted me to play an active part in evicting a whiny "never satisfied" tenant. All I knew about this family was 2nd-hand information: from the owner and from 2 different maintenance people who have been involved in the past.

I gave the owner tips of what to do and agreed to accompany him as a photo taker. I met the owner who came with his wife at the property. This "tough" tenant started boo-hooing, begging and promising to do better. Husband and wife (common law) started blaming each other for their past bad behavior. I didn't care one bit, but her daughters soon joined the "crying game" - moping and pleading with puppy-dog eyes that they wanted to remain in their school.

I took the owner aside and asked him what kinds of problems he'd been having. He explained that it was mostly behavioral attitude: cussing him, bugging and irritating him with the silliest demands for repairs, holding rent ransom for up to two weeks for no good reason... To me, nothing major, just minor irritation and negative attention gathering.

As a compromise, I volunteered to intervene as the middleman. The tenants will call and deal with me and I will collect his rent from them on behalf of the landlord. We will try this month-to-month for 6 months. The owner reluctantly agreed. His wife was adamant that the tenants move right away but finally agreed after I established a strict set of rules for the tenants. I told the long story for a reason.

In the 8th month of this arrangement the owners (couple) were away from the country for 6 weeks and obviously the tenants knew this. I had no legal documentation on this rental situation. The lady tenant played all sorts of games to avoid paying rent. Bottomline, they fled "in the middle of the night" with 2 months rent unpaid. But the kicker is that they trashed the apartment, broke into the man's basement storage where he stored a lot of medical equipment, and left the door unlocked and open. The loss is high. His wife wants them to be held accountable and so do I.

~miffed! :badwords:

My understanding from reading from veteran wholesalers and listening to a wholesaling webcast is that anytime you can do an assignment rather than a double-close, opt for the AoC.

Assignment of Contract is basically a process where you get me to agree to "sell" you my house for $50K (under certain contingencies, such as I you reserve the right to substitute another buyer's name and amount etc in our contract). They have forms for this! You then get your brother-in-law to agree and obtain the means to buy the same house from you for $90K within the period stipulated in OUR original contract. All you now have to do is schedule a closing and furnish me with the name, price and terms of the deal you struck with your bro-in-law and at the closing you get a check cut to you for the price difference and your name appears NOWHERE in the closing papers. Now, which one gives you more privacy and is less expensive, less time consuming and less hassle?

But, I've never actually done this, so wait for confirmation from professionals. :mrgreen: