All Forum Posts by: Walt Payne

I am grateful for the huge amount of learning that I have been able to accomplish here. I think that BP has an aspect to it that most internet sites fall short on. It is a great resource for information because not only do you get a lot of viewpoints but there are highly informed users who are willing to make sure that the right answers are put out there. 

If you find a legal way to do this, please post it, we were considering doing something like this next year if things go well enough.

One possibility I was thinking of looking into is to do it indirectly. Set up a charitable grant, or something like that with conditions spelled out. Have it administered by a veteran organization (VFW in our case) and have them do the selection and payout. They are a private non-profit so I think they can do it based on that kind of criteria. Alternatively, maybe rent it to that kind of organization with authorization to sub lease it, and you donate the lease amount to them to cover it.

I am not a lawyer, nor have I consulted a lawyer about this, these are just my thoughts early on in the process like you.

When I was doing a rehab for someone else back in the eighties, I had a hooker ask me if she could "borrow a key to the place" for $20 a night. No explanation given about the purpose, none needed. I refused. She then started to dicker, including an offer for free services. She couldn't understand why I wasn't interested. I was glad to get out of that neighborhood.

@Ryan Billingsley  You don't need anything mentioned about utilities, as long as you have a contract that states that responsibility for the condition of the property remains with the seller until closing, which is a standard clause. The reason for doing it that way is that if weather is not a factor, or winterizing is performed, then utilities do not need to be turned on. But the seller must deliver the property in the same condition as it was shown to you. 

I agree with @Account Closed that if this is to be an ongoing relationship it is especially important that you make a stand and not allow this person to dictate unreasonable terms to you. If your sales contract says that he is responsible for the condition of the property, hold him to it! 

@Leigh C  I was told 45 days on a recent closing on my primary residence with a USDA loan. About 2 weeks before closing they said it may be delayed "a bit". Total days was 47 at closing, so not bad. They are currently running 45 days average, but that does not guarantee that you won't be the one bringing the average up from 40 days by going 180 ;)

And then there is the possibility of using the Roth option with either of the above mentioned strategies, which creates a whole other set of possibilities in reference to future tax laws. 

Get out your crystal ball and decide what to do, lol.

I get to have my cake and eat it too ;) My employer uses a Simple IRA plan, which includes 100% matching for up to 3% AND it gives me total control, including the ability to immediately transfer the money into my solo 401k.

But I agree that taking the match, and using the investment as a means of diversification is still a good idea. That is why I do not withdraw all of what I put into the IRA. It still allows me to easily funnel income into my solo 401k that I would not otherwise have available there, by replacing the "lost" income with investment income generated outside the 401k.

@Account Closed  

You definitely need to take care of the detected issues. But I would take an additional step. Have your lawyer draft an agreement whereby the tenant waives all claims regarding health related mold issues. If they are saying it bothers them, and they stay, you need to make sure they will not come back later and sue. If they don't stay, then they would agree that you provided a reasonable and acceptable resolution and waive any further considerations.

@Joshua Dorkin  It looks great, but it would be nice to see the authors listed. I usually end up reading almost all of the blogs at some point, but when I am busy I tend to be a bit more selective in whose blogs I read.

@Dean R.  Since most appraisals just "coincidentally" come in at very little more than purchase price, it is not likely that the bank will raise the loan amount. Possible, but not likely.

I just went through the same thing, and said the same things. My answer was that it appraised as is at the agreed price, the items were not considered necessary by the appraiser so they are "future maintenance items" not necessary at this time. After a few tense days the buyer accepted that.