All Forum Posts by: Kevin Lopes

This is what my attorney told me about the surviving lease:

"Generally speaking, the foreclosure would terminate the leases in this case. However, the language on the foreclosure deed (aka deed under power) revived the leases. The language states that the the Deed is made subject to the Leases." "You are welcome to seek second opinion from another attorney. My responsibility as your counsel includes the duty to look out for your interest and to point out potential issues."

I told her I didn't sign the contract with the old tenants so I don't have to keep the ludicrous lease they signed with the old landlord. Her respond was:

"Although you are not a party to the original lease, the rights of the parties are sometimes assignable (depending whether nor not there is a provision to that effect). For example, you can buy a note and the rights of that lender will be assigned to you. You can foreclose on the note if the debtor does not pay. If the debtor then said, "why do I have to pay you when I didn't sign the promissory note with you?" Does that mean that you can't foreclose on that debtor when he is in default?"

There's no annual rent increase on these $400 monthly leases until 2020. I am still scratching my head why any landlord would accept this.

With high risk there is high return when there is a turnaround. I bought almost 20 new 1400sf townhomes in Clayton County for $25K-$40K until the deal suddenly dried up last year. The more research I do on here and on city-data forum, the more I see these 'ghetto' rarely turnaround. The more I drive through all these areas, the more I realize maybe I already bought enough...unless it an exceptionally good deal!:)

ATLANTA experts please chime in on this.

Bank initially approved my offer to buy a 6yo, modern, nice, heavy traffic, 8000sf foreclosed strip mall in Clayton County, GA for $475K cash. Rent roll show NNN leases with 1 unit empty, 3 units renting $875 monthly, 2 units renting for $400 monthly. I hope to eventually convert all units to $1000 monthly for a decent 12% cap rate.

My attorney said there's a provision in the lease stating 'the leasehold estate would survive the foreclosure', meaning the new owner must honor these $400 monthly leases until 2020!!! I told the bank any investor would expect a potential 10%-12% cap rate for such property in the 'ghetto'; and these $400 leases make this minimal return unattainable. I requested a $75K reduction and the bank said 'no.'

I'm ready to back out but my agent said I still have a week to think about it. What do you think? Are these sketchy $400 leases even legal? Next time I open a business, I pay $20K cash under the table to an underwater owner to sign a 20yr $400 monthly lease; whoever buys the property get stuck with the lease?

My tenant didn't even ask me. She won $30k lottery so she repainted the rooms, added hardwood floor, and change laminate to granite in the kitchen. She also prepaid her rent for the whole year. Hard to complain!:(

A tenant moved out of my rental and abandoned a car inside the garage after being served an eviction notice. What is the cheapest/best get rid of this? Call the police (stolen car?) or donate to kars4kids or tow it away somewhere? This is in the Atlanta ghetto area.

The bank accepted my offer for $850,000. They want me to pay the agents, so I'll buy it for $816,000 and and write a check directly to the agents for $34,000. Why would the bank do this?

I made offer for $1.5mil. I'll fly there in 2 wks to assess the situation.

I googled the properties and they're actually all single homes scattered throughout the city. Some are 8 in a row on a street and some are 12 in a row on a street and some are 4 in a row on a street. I zillowed the properties and they were all once $80K-$120K in 2007 before the bubble popped. Why don't the bank just keep them for good cashflow? I'll make the offer tomorrow; already booked my airfare.

I'm looking at a (foreclosed) portfolio of 60 townhouses that bank is asking $2 million AND willing to finance with 20% down payment. I received their rent roll and it's currently grossing $39,850 monthly with 5 vacancies. Using the 50% rule, that's:

$19925 monthly x 12 months = $239,100 yearly.

$239,100- $114,000 debt service (@6%) = $125,000 net income

$125,000/$400,000 cash down is 31% NOI.

Am I missing anything? I currently have 20 rentals and it's been relatively passive with the management companies. Is 60 more rentals too overwhelming? I'm thinking of offering them $1.8mil.

I am a newbie although I acquired many $20k-$40k foreclosed residential properties last two 2years. Those cheap deals have dried up so I'm shifting focus to $1Mil commercial properties. How do I go about getting loan for a 'foreclosed' commercial real estate? I've never done it before BUT need to move quickly to secure finance for the following property:

foreclosed fully-occupied 14,000sf strip mall

bank asking $925k

I offered $850k, 300k cash/$500k hoping to financed

$26k property tax tenants pay

gross annual income $160,000

net annual income $143,000

cashflow after mortgage $108,000.

I could do all cash deal but prefer to save my money. Do I try to get loan before the bank accept the deal? or just wait as not to waste my time? which banks?