All Forum Posts by: Tom Nellman

@David M.. Thanks for the tip, will look into the Title search, thanks!

@Jon K. Thanks for the reply!  I agree with you on it being the number that matters.  Another part of the reason I ask, is when they say I owe $120K on the house and you were originally going to be at $100k, it kind of stops my negotiations in their track b/c no one is probably going to take $100 if they owe $120 but if you knew they really owed $85K, you could start there and see if they come down to $100.  Thanks!

Hi, 

We are still fairly new to off market deals.  We have found that a lot of prospects say "If you just pay off my existing mortgage" or "If you just pay off my existing mortgage plus "$X.XX" Dollars More" it's yours.  They then when asked, they say I owe "about... "X" on the property".  As investors, how do we investigate/confirm how much they actually owe on the house.  Do you have to wait until the purchase agreement is signed and the title company gets the payoff letter from the bank and if the number is off you back out?  Just curious how this is handled, thanks!

Tom

@Peter Walther. Lots of good information and advice!  Will definitely talk to the tenants before deciding on anything if they are cooperative.  Thanks!

@Lynnette E., I like that idea but we don't live in the area or looking to move, just strictly from an investment standpoint but could look at friends/family in the area as an option.  Thanks!

Tom

@JD Martin, Appreciate all your input!  If we go through with it, will definitely let you know how it works out, thanks!

Tom

@JD Martin, That was the definitely a thought as well.  You know the saying, if something seems too good to be true, it usually is.  I would like to believe it was just the tenant problem making her want to sell it cheap quickly, but it will take more digging for sure.  Is there a way to better alert the Title company that we suspect fraud that would push them to dig even deeper? I have heard that even though you have title insurance, it can be a bear to get that to kick in and it may cost even more to get it it to pay....  I appreciate your insights! 

Thanks,

Tom

Hi @JD Martin, thanks for the reply.  She only wants $10,000 for the purchase price, not a 100k, so I am assuming it is wrecked.  It's a 2300 sq ft 4/3, so assuming $40 a sq ft to fix it up if trashed, would be $92,000.  The exterior actually looks really nice but I'm assuming a total renovation on the inside due to her wanting out so quickly, she really just sounds exhausted and wants to be rid of it.  The numbers seem to work and it's in a good neighborhood, just not sure if its worth the risk unless we can get the tenants to agree on a cash for keys deal before closing date.  Thanks for your input!

Best,

Tom

Thanks @Theresa Harris, I'm pretty sure the moratorium was lifted July 25th in Oklahoma.  I like the cash for keys idea, I imagine it's something we want to work out with the tenants prior to closing.  If we can't get them to agree, we keep a contingency in the agreement that gives us a way out.  Appreciate the input, thanks!

Tom

Hi,

We have sourced an off market deal in Tulsa, Oklahoma. The seller owns it outright and only wants 10k to get out of the property and the property will ARV at +130-140k easily. She took the tenants to court and lost during covid, they have renters that won't leave, but no signed lease, suppose to be paying week by week but stopped paying and she just wants out. Is this something to avoid at all costs, tenants will likely destroy it and make it tough to possess... or is there a way to solve this and get a great deal? Appreciate any input.

Thanks,

Tom