All Forum Posts by: Tom Broughton

We close on the properrty tomarrow. Number 11 Kid went to the property yesterday and said her "goodbyes". 8)

I must be snakebit. :shock:

The agent for another property I signed a contract for last week called and said that deal is on hold. The previous buyer (that backed out because they could not raise the cash) is filing a lawsuit against the seller. At least I have not written any large checks on that one.
By the way, it is an estate sale also.

Thanks for all the advise.

Some additional information......
The Executor of the estate signed the contract.
The title company wants all the heirs to sign a release before they issue the title policy.
The Language in the contract is fairly strong, although there are no dollar penalties for the seller.
From the contract:
[b]At the close:
"Seller shall execute and deliver a general waranty deed conveying titile to the property to buyer and showing no additional exemptions or delinquent taxes."

"Seller and buyer shall execute and deliver any notices, statements, certificates, affidavits, releases, loan documents, and other documents required of them by this contract. the commitment or law necessary for the closing of the sale and the issuance of the title policy"[/b]

i.e. All the children must sign if the title company requests it.

I have been told by a lawyer that it is very unlikely that a judge will force them to sell the house to me. Although I should be able to collect any expenses I incurred during the buying process.

[i]There isn't an administrator for the probate? Odd.

The hold out could be looking for more money.

Write up a new offer for 5K less. Tell them that if it falls out of escrow that's what you'll be able to offer to make up for costs incurred.

Then you'lll find out if the person really is holding out for emotional reasons.[/i]

Why would I offer 5k less if I wanted the property?
Wouldn't it give them an opportunity to sell to someone else at a higher price?[/i]

I have a contract on a house that was scheduled to close Friday.
It is part of an estate sale with a gentleman that had 11 children. I was notified tonight that 1 of the 11 did not want to sign during the session for emotional reasons.
The other 10 want to sell.

It seems unfair that if I decide to back out of the deal, I lose $1K + inspections, but if one of the kids decides to back out of the estate contract, there is no negative impact to their side.

The property itself is less than 100K and has a lot of 3-5 year potential because of its location, but I am not "stealing" the house from the estate.

By the fact that I am posting on this site, I think the property is worth a little hassel. We decided to give the reluctant kid more time to make her decision.

I don't know all the specifics on their side, so I need advice what questions to ask.
And what are my options?

biggerpo
Like the rest of the nation, there is a housing slowdown in parts of Houston (mostly outside the loop in $150k Nabs), but inside loop 610, and especially close to DT, the market is on fire. Properties have been rising 30-60 percent each year.
But I have to fight with the builders when attempting to acquire property.
At the tax foreclosure sales, they are bidding lots that were appraised at 25k in 2006 up to 90k. I decided to look in some special areas just outside their radar, and after 6 tries I finally caught one.

I know I have to have positive cash flow, but I think this is a unique opportunity. After years of flight to the suburbs, it is reversing.
By the way, my first will have positive cashflow after I pull 90% of my equity out.

beachbum
The neighborhood is currently lower income that is on the verge of becoming Yuppy. Teardowns with upscale townhomes are within rock throwing distance, but I have several years dealling with the current crowd.
The comparable "Rentals" do not have D/W except in the high dollar restorations which I am not competing against...yet

I think you answered my question though.
Any other opinions?

I appoligize if this topic has been posted before, but I could not find it in a search. I am also a newbie.

I am planning the remodel of a House with apt and need your advice.
The property is 1.5 miles from Downtown Houston in a "transition" neighborhood. New development is rapidly approaching from Downtown, while other nearby neighborhoods with similar 1920-1930 homes are being lovingly restored. Values are increasing rapidly.
I expect to rent this place for 4-5 years and re-evaluate.

My question is: Should I add a disposal and dishwasher during the rehab? I have been told that they are a pain in the *** because renters will clog the drain and I will get the 12 midnight call. Comps in the area do not have them.

I will be adding separate elec. meters and doing alot of rewiring, so even if I don't add the appliances, I may add the electrical circuits in preparation for a future flip.

What is difference in rent between having a D/W disposal and not? And are they as big a headache as I have heard.

Hi:
Great site! I have been lurking for a while and have already learned a lot.

And thanks to the many veterans who willingly share their expertise with us newbies. Hopefully one day I can return the favor.

My Business plan:
Find Value properties within 2 miles of Downtown Houston (in neighborhoods that are in the beginning stages of gentrification). Rent the properties until the neighborhood and surrounding properties warrent upgrading or redevelopment.... and sell . Focus on unique properties with historical character, and neighborhoods that I beleive will see significant changes within 5 years. Strong preference for properties that are close to the light rail expansion projects that are currently being finalized in Houston.
Hopefully the properties are cash flow positive, but I am willing to go underwater since I am expecting at least 10% annual appreciation over 5 years.

Close in properties are very difficult to find (and lock). After six offers (3 were at full price on the 1st day on the market), I am closing my first multi family October 26th. Cash deal that I will rehab, rent, and refi to get my next property.

I have a lot of questions that I will ask in the appropriate sections.

Thanks to all in advance!
Tom