Lead from Courthouse (by DJ [VA]) Jan 19, 2021 2:43 PM
Lead from Courthouse (by DJ [VA]) Jan 19, 2021 2:46 PM
Lead from Courthouse (by Ken [NY]) Jan 19, 2021 2:59 PM
Lead from Courthouse (by DJ [VA]) Jan 19, 2021 3:05 PM
Lead from Courthouse (by Sisco [MO]) Jan 19, 2021 3:08 PM
Lead from Courthouse (by DJ [VA]) Jan 19, 2021 3:12 PM
Lead from Courthouse (by DJ [VA]) Jan 19, 2021 3:17 PM
Lead from Courthouse (by Busy [WI]) Jan 19, 2021 3:30 PM
Lead from Courthouse (by Ray-N-Pa [PA]) Jan 19, 2021 4:30 PM
Lead from Courthouse (by Ken [NY]) Jan 19, 2021 4:49 PM
Lead from Courthouse (by DJ [VA]) Jan 19, 2021 6:53 PM
Lead from Courthouse (by Robert J [CA]) Jan 19, 2021 7:01 PM
Lead from Courthouse (by DJ [VA]) Jan 19, 2021 7:24 PM
Lead from Courthouse (by DJ [VA]) Jan 19, 2021 7:59 PM
Lead from Courthouse (by Ken [NY]) Jan 19, 2021 8:14 PM
Lead from Courthouse (by Ken [NY]) Jan 19, 2021 8:16 PM
Lead from Courthouse (by DJ [VA]) Jan 19, 2021 8:29 PM
Lead from Courthouse (by 6x6 [TN]) Jan 20, 2021 6:05 PM
Lead from Courthouse (by JB [OR]) Jan 20, 2021 6:44 PM
Lead from Courthouse (by DJ [VA]) Posted on: Jan 19, 2021 2:43 PM Message:
I met a man at the court clerk's office last week. I shared with him my recent experience in court, & we chatted a little. He said he has a tenant who has stopped paying, and wants to sell the house. (& put up a pool, & a couple other violations).
Anyway, it's a nice 3/ 1.5 in a good area where I want to acquire long-term rentals. I would LOVE to work out a deal with him & his wife to buy it. I just drove by there today & called him. He said he is serious about wanting to sell it, but would prefer to sell it outright & wash his hands of it right away - he has had enough of it.
I suggested if they consider taking payments for a while - they can leave the mess & be done with it. I explained how he would have to do the clean / fix etc to be able to sell it to someone with a mortgage. I would want to make payments to them while I fix it up, get it profitable, and can then get financing on it myself. (BTW: I intend to keep a chunk of my money in it, but have a smallish loan - so I can repeat the process).
I don't want to use ALL my cash to buy it outright, and I don't believe I have enough anyway.
Ideas? How to convince them that my idea is a good one?
Or have a better one?
--68.229.xxx.xxx |
Lead from Courthouse (by DJ [VA]) Posted on: Jan 19, 2021 2:46 PM Message:
Also, he told me the tenant claims they are moving out Saturday.
Wants me to call him back after then - he would be able to show it to me then, if they really move. --68.229.xxx.xxx |
Lead from Courthouse (by Ken [NY]) Posted on: Jan 19, 2021 2:59 PM Message:
I buy houses like this situation. You need to figure out if he is behind on taxes and if he has a mortgage and if so how much.I meet them at the house to talk about it so the seller feels the pain while he is there.Show him exactly what he will receive as in this much sale price,this much down,this much monthly for this long till final payment,bring a contract and if they accept write the contract right there and get the process started.Watch the house and when the tenants dont move let him know he was lied to again but you can deal with it --72.231.xxx.xxx |
Lead from Courthouse (by DJ [VA]) Posted on: Jan 19, 2021 3:05 PM Message:
Taxes are current.
There is a mortgage, but I don't know how much yet.
Tenants are refusing access - but I like that idea "about feel the pain" while we talk.
Also a good idea to bring a contract - or at least intent to purchase - get something in writing with signatures. --68.229.xxx.xxx |
Lead from Courthouse (by Sisco [MO]) Posted on: Jan 19, 2021 3:08 PM Message:
You need to assure him that you won't hand him back a bigger headache than he has now. Given that he is a government employee, he is no risk taker. You may need to fund this deal elsewhere. --67.43.xxx.xxx |
Lead from Courthouse (by DJ [VA]) Posted on: Jan 19, 2021 3:12 PM Message:
Transferring the deed subject to may work, but if seller is savvy - may not go for it.
A sandwich lease I would consider, but I expect it will need some work. I hesitate to spend TOO much if I don't have the deed yet. But, seller might see that if it fell through, they would have a nicer house ready to sell? NOT that that would happen! Is it best to not even plant the thought?
I would normally like a longer time before refinancing, but - if you were the seller - would it be better to offer a shorter time before cashing out? Inside of a year would be safely doable, but don't want to make it too quick - need time to renovate & wait for a HIGHLY QUALIFIED tenant. Like it may be Summer to get it occupied. --68.229.xxx.xxx |
Lead from Courthouse (by DJ [VA]) Posted on: Jan 19, 2021 3:17 PM Message:
Sisco:
??
I don't know where he works.
??
If it won't qualify for a loan now, are you suggesting a private money loan during renovation & advertising?
Also, remember - I don't want a loan for the full value / purchase price. Just enough of a loan so I have money left to look for a few more. --68.229.xxx.xxx |
Lead from Courthouse (by Busy [WI]) Posted on: Jan 19, 2021 3:30 PM Message:
Sisco probably misread , as did I, that it was the court clerk that was selling. Hence, the reference to government employee. But, rereading, I saw my error; he was just a fellow landlord there for landlord stuff.
This sounds like a good way for you to find leads. --70.92.xxx.xxx |
Lead from Courthouse (by Ray-N-Pa [PA]) Posted on: Jan 19, 2021 4:30 PM Message:
This is an ideal subject to deal.
Don't hide it
Offer a nice amount down and give yourself a couple of years to get rid of the pain.
Why is this ideal, the seller is getting negative cash flow due to a non-paying tenant. Can you make it more negative? If you offer an honest amount of money up front, you have this deal.
You can always place the property into a trust and move it that way so it gets treated like a refi when you are ready --24.101.xxx.xx |
Lead from Courthouse (by Ken [NY]) Posted on: Jan 19, 2021 4:49 PM Message:
I wouldnt do it unless i get the deed and if the seller is financing it i dont do balloon payments.Remember you are solving his problem so you are holding all the cards.If not this one you will find another similar one soon enough.If you are solving his problem you need to get what you want out of it --72.231.xxx.xxx |
Lead from Courthouse (by DJ [VA]) Posted on: Jan 19, 2021 6:53 PM Message:
I agree - subject to is a great possibility.
However, I don't know what their payment is yet. And, I want to be prepared with different ideas for negotiating.
If they don't go for subject to, sandwich lease could be OK - as long as i have the Option to purchase. However, from what he said, I don't think they are interested in any kind of lease.
Excellent point Ray - it won't be worse than what they have now! No matter what I offer. --68.229.xxx.xxx |
Lead from Courthouse (by Robert J [CA]) Posted on: Jan 19, 2021 7:01 PM Message:
I've purchased several (many) multi-units from sellers that wanted to exit the business and live off the proceeds. I explained that if they sold the property using a broker, they'd have to pay a 6% commission plus 2% closing costs. Then Federal Long Term Capital Gains Tax, State Tax, Recapture on the depreciation and finally the Medical tax of almost 3%. Meaning they would have around 60% left to live off of and invest. In Tax Free bonds they could get 3%. So in my case 3% of 60% of the proceed would give them $5,000 a year income. Sell me the property and carry back the mortgage, making it an installment sale paying taxes as you go. This way they would generate around $22,500 a year as taxable income, or after tax $16,000. Over three time more than a straight sale.
This works when the property was paid off and the people want an income and not a lot of cash.. --47.155.xx.xxx |
Lead from Courthouse (by DJ [VA]) Posted on: Jan 19, 2021 7:24 PM Message:
If in pristine condition, full retail value would be around $175-185K.
It will rent for $1200 - 1300, depending on condition. Around 205/mo for tax & Insurance.
I'm told the Roof & HVAC are about 6 yrs old, has hard-wood floors under the carpet, and original 1958 kitchen.
Didn't ask, but if the kitchen hasn't been updated - maybe not the bath either? Older chain-link fenced corner lot
It was last purchased for $121K in 2011
What do you think would be a good amount / down-payment to offer?
Has anyone removed an above-ground pool? I can only imagine the flood it could cause. Suggestions for how bad that would be?
--68.229.xxx.xxx |
Lead from Courthouse (by DJ [VA]) Posted on: Jan 19, 2021 7:59 PM Message:
Does this math seem right?
Based on average mortgage rates in Oct 2011, if basically the whole purchase price was financed (worst case) Their monthly payment is possibly about $655 + 205 Tax & Ins = $860 / month and current balance around $82K.
Rent 1200 (worst case) x 80% (maintenance & Vacancy) = 960 - 860 = $100 profit during sub-to /rehab period.
If I purchase for $120K (after getting it repaired & rented), refi $100K @ 3.25%, keeping 20K in = $435 + 205 = 640 / month
1200 x .8 = 960 - 640 = 320 profit/mo
Total $40K invested(repairs/improvements & downpayment, 20K each)
320 x 12 = $3840 / yr = 9.6% Return on $40K investment
--68.229.xxx.xxx |
Lead from Courthouse (by Ken [NY]) Posted on: Jan 19, 2021 8:14 PM Message:
Solve the problem which might mean nothing down or a couple grand to get them through closing.I dont talk to them about value or anything other than lets solve this for you,i can make the payments till i sell itand then payoff the $35000 owed on it,i will pay your filing fees at the county and i will have my attorney do all the paperwprk and i will pay my attorneyfor everything,if you want your own attorney you have to pay him,they rarely get there own attorney which allows me to maintain control.No adjustments for taxes or rent and i will give you $1000 for your time.The only thing they usually ask me for is maybe $2000 instead of $1000 and they thank me because by doing it this way because most people have no idea how much the filing fees etc will cost them and this way they know they will have $2000 and dont have to dig into there pockets to get rid of the headache Also i ask them are you going to go after the tenant for the back rent? they will say no so then i tell them i would like them at closing to sign a letter assigning the back rent to me so i can start my eviction immediately and they say yes and are happy to know i am capable of eviction the tenant that they couldnt.Again simply solve the problem,dont throw cash at them it isnt necessary --72.231.xxx.xxx |
Lead from Courthouse (by Ken [NY]) Posted on: Jan 19, 2021 8:16 PM Message:
As far as the pool if it is decent put it on craigslist for free and people will be begging you for it. If it isnt worth the bother i just take a pick ax and put a few holes in it down low and it will drain out and go away,then put an ad on craigslist for free for scrap and you will have a dozen guys asking you for it in a few hours --72.231.xxx.xxx |
Lead from Courthouse (by DJ [VA]) Posted on: Jan 19, 2021 8:29 PM Message:
Thanks, Ken! --68.229.xxx.xxx |
Lead from Courthouse (by 6x6 [TN]) Posted on: Jan 20, 2021 6:05 PM Message:
Lead from Courthouse (by JB [OR]) Posted on: Jan 20, 2021 6:44 PM Message:
Darn. I thought this was going to be a story regarding handcuffs or a lot of swearing and talk of a judge mentioning someone being in contempt of court. Robert J??? --73.25.xx.xxx |
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