All Forum Posts by: Ryan Fox

@Greg Lovern Seller financing works just like bank financing.  The buyer would pay you prepaid interest through the end of August.  Their next payment would be due October 1st.

@Tatum Kantor- Investing OOS has been a lot easier on my schedule than trying to do something local.  Once you start making offers, the whole process of underwriting then offering is time-consuming enough.  It also seems to interrupt the day as well because good deals go fast.  

And then if you're going to do the rehab process and hire the contractor, draft the scope of work, be available at any time during the day to deal with hiccups, that gets really time consuming. You can do BRRRR deals without getting into any of these rehab complications. It's a matter of hiring a team that will handle it for you and where the numbers would generally work for what you want to accomplish.

@Jason Leigh - Write them a letter explaining their shortcomings, as recommended above, but point out specifics in their management agreement that they did not comply with.  Were they supposed to provide you monthly statements and did not do so?  Are they seeking to charge you for items that would have required your approval in the first place?  Were they actually marketing the property through Zillow / Trulia, ect?  Good luck!

@Chrissy Gray - Sounds like the father has the most to lose.  If he doesn't submit his proof of claim in the bankruptcy, he stands to lose the entire amount he lent, less the amount he was re-paid.  

The BK trustee will have rights to the 1/3 of the land owned by the son.  He can try to find a real estate agent to sell that 1/3 portion, but it would probably be beneficial to all 3 of you to let the agent sell the whole tract.  Selling just 1/3 isn't very marketable.  

Maybe you guys bought this property way under market and it's worth more?  Hoping that's the case.  

@Curtis Baker- The key is, what can all the owners agree upon?  I've seen family disagreements lead to litigation and it's ugly and no one wins.  Even if you take a loss on your investment by getting out, it's probably better to part on good terms than having to lawyer-up.  

@Chrissy Gray- It sounds like the attorney is setting the father up for failure.   Are the father and son on bad terms?  Whenever someone files for bankruptcy, there is an automatic stay of all legal proceedings against that person.  This would include any attempt to foreclose on the property.  There are stiff penalties for violating the automatic stay.  It sounds like the attorney may be trying to get the father to start the foreclosure, then get sanctions against him for doing so.  After that, the attorney can get the father to settle by releasing any interest he has in the property.  

The proper way for the father to assert his interest in the property is to file a proof of claim in the bankruptcy.  There may be other things he can do depending on the facts.  This, of course, is not what the attorney wants, as he wants to reduce the number of creditors at issue so that his client can exit bankruptcy with no debts or keep some assets.   

@Chrissy Gray- So unfortunately, it's a little more complicated than that.  Your friend's interest in the property / partnership is part of his bankruptcy estate.  He can't simply quitclaim the property to you for no value.  This would essentially be considered defrauding his creditors because the creditors are entitled to the value of all property he owns.  

If you'd like to speak to an attorney about this, I have a referral.  

@D T.- In a legal sense, I can't think of anything else you need to do at this point.  If this is the only time this has happened, it would be difficult for her to argue that you breached the covenant of quiet enjoyment.  

@Rick Albert- One way I've found around this is to take a loan against a stock account.  Costs nothing to set up and it doesn't go on your credit report.

@Joel Bayer- Under the "expenses" area, there is a cateogory for "other."  That's where you can put in the principal & interest payment.