All Forum Posts by: Luke Glaze

Hello fellow landlords. 

About 6 months ago I made an offer on a large triplex and shortly after the owner went into bankruptcy. Lawyers representing the people she owed money to contacted us and asked if we were still interested in buying it through the bankruptcy court process. Fast forward to today... we have a signed purchase agreement from the judge and we were one day away from signing. The house was supposed to be completely vacant by this time. Unfortunately, the day before signing we found out that the son of the original owner is not leaving. He is staying down in the basement. According to the lawyers representing the debtor, the son has been asked to leave and not even his mom can convince him to leave. Naturally, we do not want to inherit this tenant (he is not paying rent, nor does he have any lease or rental agreement). We also can not go back and easily renegotiate price to reflect the possible long and/or destructive process of legally removing this person once we take possession. We have tenants ready to move in ASAP and we were hoping to be signed and done today. In an effort to speed up the process, my agent had a conversation and offered the guy some money to be out by Monday. 

I know that this is a legal matter and that anything I read should be verified with a local attorney but I would love some advice, suggestions and examples from anyone who has experience related to this issue. 

My questions are:

If we sign the paperwork, take possession of the house and he is living in the basement, do we need to treat him as a tenant and start the eviction process or can I treat him as a trespasser?

If we sign and take possession do we have legal right to sue for the expenses occurred by dealing with this person, since the purchase agreement states that the house with be unoccupied and free of possessions.

If he leaves on Monday but leaves behind possessions, would we be required to store those items for any length of time?

Any other strategies for dealing with a situation like this?

I appreciate any thoughts and advice that you might have. Thanks

Thanks @Account Closed for your thoughts and concerns. I am very well aware of the potential costs of converting the building into multifamily and costs of maintenance and repairs on such a large house. I am not sure I communicated well in the first post but the house is currently move in ready. My rental strategy would not require me to split the units or to do any major renovations of the space. The  house is in great condition and has many modern updates. There are currently 3 kitchens and three distinct living spaces but I would not have to completely separate them or convert the building to multi family. The students could split up into the three spaces but would each sign a single lease with a housemate addendum. I currently have this situation with a 5 bedroom house with 2 distinct but not separate living spaces. 

I am confident in my ability to find tenants and manage the building but I agree with your concerns with resale potential. The reason who we would get such a good deal on this property is because it is a unique property and requires a specific strategy. I see it as a trade off, cheaper purchase price but a more limited buyer pool in the future, thus probably cheaper price. 

I do not plan on committing mortgage fraud. I am only interested in trying the owner occupied route if it is legal for one of 2 partners to occupy a house to qualify for owner occupied loan. So, I guess my questions still stand:

1. If myself or my partner are willing to live in the house, can we get an owner occupied loan? Would the structure of our partnership effect that (i.e. LLC, partnership, tenants in common)?

2. Could we have a non-equity partner that could occupy the property in exchange for free rent, allowing us to achieve the owner occupied loan?

3. anyone have experience operating a dorm style housing arrangement, like this? '

Thanks

Luke

Hi Bigger Pockets Community,

I recently started talking with a colleague about doing a partnership deal on a 8000sq. ft. Italiante Victorian house with 13 bedrooms. The house is located a short distance to a small christian undergrad program that does not offer housing. The college continues to grow and the need for housing is great. This house used to be a bead a breakfast and could easily be split into 2 or 3 separate units. 

Questions:

1. If myself or my partner are willing to live in the house, can we get an owner occupied loan? Would the structure of our partnership effect that (i.e. LLC, partnership, tenants in common)?

2. Could we have a non-equity partner that could occupy the property in exchange for free rent, allowing us to achieve the owner occupied loan? 

3. anyone have experience operating a dorm style housing arrangement, like this? '

Thanks!

Luke

Hi everyone,

I have read some of your articles related to foreigners investing in the USA. I have been working overseas (Jordan) for the past 6 years but have managed to build a small but successful portfolio of rentals in Salem, OR. I was recently approached by a friend whose company does small business and real-estate investments for their Middle Eastern investors. The company is in Jordan but the money is coming from Saudi Arabia, Tunisia, Jordan, etc. He believes that his company would be interested in investing in US properties and with me specifically. He is also interested in personally funding deals.

I have been reading about partnership for sometime but I always assumed it would be for a US based partner. I would love help trying to understand the steps required to have a successful partnership with a foreign business or individual. From my understanding, I would start by setting up an LLC and drawing up docs with a real-estate attorney. I would then open a bank account and have my EIN. Could the funds for the deal be wired to the escrow account/title company at closing. How could I go about disbursing funds to the investor? Would it be easier to just have the investor loan me the money, like a personal hard money lender with better rates? Any help would be much appreciated, like I said, I have only done personal purchases and I have never worked a partnership deal. Thanks.

Luke

Hey experienced wholesalers,

I am a fairly new real-estate investor, I have 2 SFR and 1 MFR. All of these purchases were "house hacks." We got owner occupied deals and had to put very little down. I plan to start buying standard investment properties in the future and would love some help in finding good deals. I have found some good deals through mls but I want to see what other options are out there.

My first question is can I pick up a deal from a wholesaler without being a cash buyer? Can I use conventional lending, portfolio, etc?

Hello experienced investors,

I have a question regarding how to structure my investments moving forward. 

I am a fairly new investor and I have "house hacked" my first three properties. We have been able to purchase each as an owner occupied and thus have put very little down. We will probably do this one more time and then move to standard investment financing in the future. 

We have two SFRs that have been rented with 0 vacancy, the first for over 5 years and the second for over 2 years. The last place we purchased is a tri-plex. We will probably buy one more owner occupied SFR in the next two years and settle in that one. I want to start purchasing SFR and small Multi-family homes as investments but do not know how to structure my investments. In addition, I have been talking with a potential partner about going in together to purchase properties.

How can I structure my future investment deals so that they do not put my families stability at risk and how can I structure a simple deal with a partner. I would most likely manage the properties and do most of the work since he does not live local. We talked about going in 50% each on the upfront money but how do I structure a partnership where I will be the working partner? 

Thanks so much for any help you can provide. 

Thanks @Will Porter, 

I think as I continue, I will look to find cash partners or pull money out of one of my other properties. I have also heard that homepath properties can be bought as investment properties for as a little as 10%. That would limit my options but could help get me into my next deal quicker. My goal for real-estate investing does not have me exceed 10 separate homes or purchases so I do not think I will face to much problems from the lender side. 

Thanks again for the advice!

Hello BP community,

I wanted to introduce myself. My name is Luke. I am 28 years old and I have been a real estate investor for the past 5 years. My journey started when my wife and I moved overseas and rented our home. 2 years later the market slumped and we picked up another single family home. We did some extensive renovation, including finishing the basement and rented this out to a group of young professional bachelors.  2 weeks ago we put an offer on a triplex and we hope to close by mid September.  So far I have been purchasing owner occupied properties with conventional or fha loans and moving every couple of years. I will be able to do that potentially one more time and then I will need to go with tradition investment property financing. I am concerned that cash will be a big issue for me to continue investing. Saving 25% for down-payments will take a considerable mount of time on our limited income. 

I am interested in meeting other investors in the Willamette Valley (salem, oregon). I would love to continue learning and sharing stories with other investors. 

Look forward to hearing from all of you!

Luke