All Forum Posts by: Tyler Gibson

@Trinh Lam If you hire a real property manager they should deal with finding suitable tenants and getting the property leased. In fact, the way you pay them with a % of gross rents incentivizes them to get you top $ and keep it rented. That being said you will need to pay for Lawn maintenance and repairs when needed. I think that the live-in a property manager is probably more costly.  

 A bit off-topic but yes I have a friend that had something similar from Disney that allowed him to issue an allotment of time to his individual children. Once they used up the time that was it. His kids would come to him and ask how they could get more time. He would give them chores and in exchange for doing chores, he would give them more time. So instead of having an allowance of cash, they got an allowance of Internet time.  He was able to control all of this from his phone.

@Chris Mason That is such a brilliant idea. Google Wifi would make that really easy and not very expensive. 

@Jeremy Holcomb You will not be able to get a conventional loan without title insurance. You can't get Title insurance without a quiet title action or until the time has elapsed. @Wayne Brooks quoted 4 years but I think it is actually 5 years although I could be wrong. Check with an attorney. Another option is Cleartosell.com (I have not used them) they claim they can do som title searching and provide you with a certificate that some title insurance companies will accept but if they are not able to issue the certificate for any reason you can use them for the quiet title action and any fees paid for the certificate will go towards the cost of the quite title action. The internet research I've done on the cost and process of a quiet title action suggested your costs could be 5k and 3 months of time to complete a quiet title action. 

@Megan Lawson It sounds like you want to split capital gains with them. Capital gains would be future sale price minus purchase price and capital improvements like redoing the kitchen. Example you pay 100k now invest 20k in renovations and sell in 10 years for 150k. Capital gains would be 30k I think this is what you are trying to split correct me if I am wrong. 

1. You should keep track of all expenses that improve the property since you can use them to reduce your capital gains tax when you sell. How you track them could be scanned receipts in a folder and a spreadsheet or something more sophisticated but track them. 

2. As for structuring it, I would have an attorney draw up an agreement. If you want to go one step farther you could have the agreement recorded at the county as an affidavit.

3. Options for getting their cash back with capital gains is tricky. The way you appear to be wanting to structure gives 3 options. 1)sell 2)cashout refi 3)come up with what you owe them and pay them yourself. but you will want to define what you would do in this case ahead of time and put it in your contract. 

4. If you go the route of splitting capital gains then yes they would be entitled to 50% of the difference between purchase and sale price if you could sell it for what it is appraising for. 

Now for some unsolicited advice. I am of the thought that doing business with family is not for everyone and more specifically not for everyone in my family. I do business with my father and we're able to be honest and direct with one another about our perception of things and discuss business without allowing it to be tied to emotions. I have other members of my family that I would not be able to be so formal and business-minded with. 

With that said you need to have open and direct dialogue with everyone involved. Talk about all the different situations you can think of and decide now how it will be handled in the future. Everyone needs to agree to the terms of the deal. Money can and will ruin relationships if the specifics are not discussed and documents ahead fo time. If anyone thinks that this could cause an issue in the relationship then find another way. Family is more important than money. 

@Sinil Kim Most conventional loans have pay on transfer clauses which means that when you transfer title the Bank could require you pay them the balance of the loan. Some people will tell you there are ways around this but the reality is if the bank finds out you transferred the title and they want to collect they can. I suggest speaking with an attorney and possibly your bank before transferring the title. 

@Catherine C. Ally Bank has 2.1% wealthfront currently has 2.57%. My wife and I are currently in the process of moving our cash saving away from wells fargo for the same reason you are. I am looking at ally and wealthfront. My sister uses Ally and thinks it is great. Both have insurance Ally has a limit on transaction wealthfront does not.

@Brenda Mercado Baez Florida has micro economies throughout. Some areas you will find that multiple single-family properties are the way to go. In others, you may find multi-family to be the way. That said without having a better idea of where you are looking it is hard to give any kind of advice based on my knowledge. Feel free to add more detail as to the area you are looking in here or send me a message and we can discuss more specifics. 

@Michael Cronk you have 2 options find a lower class property that costs less or look farther inland. more in the center of the state. In orlando everything that is near downtown is expensive unless it is in a high crime area. so I bought in Daytona Beach in a lower class property. 

@Shannon Fong There certainly could be something wrong with the property but necessarily. could be an older person ready to cash out and doesn't know what it is worth. Could be someone died and left it to a child that lives really far away and doesn't want the property. The reality is you don't know enough right now. Depending on if this is a MLS listing or something off market you could get it under contract do an inspecion and back out if it is too much of a project. Just make sure contract is contingent on an inspection. If you can't have the contigency of he inspection pay for an inspection prior to putting under contract. Going this rout will cost you a few hundred dollars but it will save you from getting in something over your head.