SteveG_Pa

Just wondering if anyone contacts RTO sellers who have it right in the headline on CL.

Steve, My husband and I separated at the end of last year. He had been providing support payments that covered all of my bills for the house and our children. A couple of months ago, he stopped. Since then, I have had trouble paying all the utilities and the mortgage etc... Now, I find it necessary to sell the house because it's the only real asset that I have. As far as the amount of debt I would have to payoff with the sale, it's over $30,000.00. I need that much to be able to move to an apartment that is big enough for three, and start with a clean slate, so to speak. I am really only looking for an outright buyer for the house. If you know someone who might be interested in buying a house that needs a bit of work, maybe a person who is handy with some basic interior work, this house could be beautiful. It has lots of charm, and the woodwork is amazing. Thanks for the inquiry and if you might know someone who might be interested please let me know. Melissa 'Im curious how you reply to someone who basically tells you they need the money to move etc

Thanks Matt, neither the seller nor buyer have the 2k, the way Im looking at it now is just helping him sign over the deed and get that squared on his own, and in return, hes going to sign over the duplex to me. You are right, there isnt much to the first deal, but if it gets me into the second deal Ill give him some friendly advice on the other place. Basicly just going to include the 2k from him in the first one, to the second I guess, if that makes sense lol. Thanks again

Sigh, ok heres the newest way I could come up with to get this deal done, hes nervous and worried about not being responsible for this property due to those inspections, he backed out of our meeting today because he couldnt come up with $1500 and said he knows pnc wont release the deed so he can sign it over. I explained the bank has a mortgage on the property, but the deeds in his name. So now he'll quit claim the deed to her. What do I need to make sure they pay on it like theyre supposed to? Put a mortgage on it with him as mortgagor? If so what would I need to do that. Secondly, he has another property, 2 unit in great shape, both currently rented for a little below market in a great area. Owes a little below market on it and is "I think" willing to sign it over instead of giving me cash. Payments are $635 and rent brings in $970. Roofs 8 years old, has new furnaces and electrical done, some work done to update it with new sinks and tubs etc. Hes very motivated to just get rid of all his properties, got in over his head using his own money and credit etc to buy a couple properties and now is overwhelmed. So, I wouldnt mind taking this one over and trying to sell it while maybe collecting a few months rent. No kinda backup though so im nervous. What do ya think?

Great post and congratulations!

Seller said today that hes worried about the local rental fees. $40 per unit, inspections every 2 years. Due to the condition of the property, he doesnt want any surprises if code violations come up that the buyers cant cover, he didnt say it outright but I believe that to be the case. I asked him today if hed be willing to just sign over the deed and he said yes, in which case it would become owner occupied and exempt from fees and inspections. So it looks like ill be assigning a sub to.. Have to find a contract now.. Any ideas?

Well, meetings set up for friday morning, tentatively, were all getting together at the property to sign and assign everything.. sellers paying me 2k up front and putting it on the loan amount, total price is 14.4 to buyers including my 2k.. ill post if it really happens this way lol

Yea I know that doing something like that could be brokering, I meant id be in the middle and assign everything to the buyers, this isnt something im spending alot of time on at all, but if I could get it done swiftly and without any headaches id do it.

Michael, could I set this up like this.. Tell seller I need 2k, and Ill setup all the paperwork for a CFD between the seller and current tenants. Theyll take care of any maintenance so the seller doesnt have to worry about taking care of anything but collecting the rent and going to closing. Figured id set it up at 300 a month for 48 mths. Total of 14.4k - my 2k would still net seller about 2k himself. Only thing Ive been thinking about though is what should I tell seller he can do with the deed during the 48 mths so theyre both protected, I know im over thinking it and probably already know the answer.

Michael, got in to see it. Needs torn down lol. Tenants seem to think they have a CFD already in place, but they have no idea what theyre price is, how long they are paying etc. Seller told them 12k last time they spoke I guess tho. They pay 285 a month and love the place tho, its a 4 bdrm and they have 3 kids. Fixed income of about 1100 a month so cant afford much more of a payment either. They already pay for all the maintenance and have done "some" work on the place, but it needs ALOT more. Unless the seller can come out of pocket and I can raise the rents I dont see what I can do to help either of them.

Thanks Michael. Sounds like a month to month, rent is 300 a month, everything you mentioned above is the goal when I get in there, seller hasnt called back yet to let me know if I can get in tomorrow. Just not sure how to do an option, then assign it, if either one of them can come up with 2 or 3 k that is.

Called a seller back who has a house worth approximately 25k, not in the best area of town, owes about 11k on it, needs some repairs, but mostly cosmetic by the sounds of it, waiting for a call back right now actually about getting in tomorrow to look at it. Anyway, tenants been in the property about 4 years and would love to buy it, but probably dont have any money for down payment according to seller. Seller has talked to them about buying it creatively somehow, and theyre very interested but seller doesnt have the time or knowledge to get it done. Seller said hes willing to just walk away, any way possible, he said he knows theres creative ways to do rei and would be willing to do just about any of them. As a first deal id be happy just walking away with enough money to pay the bills for a couple months and give the seller the rest, he mentioned not really having any money that he can come out of pocket with as well. Hed probably be fine if i just took it sub to or something too. I almost feel bad like hes "to" desperate to sell, sounds like this property is a huge strain at home with the family. So basicly I was looking at just setting something up between the seller and current tenant, taking a cut for setting it up and walking away. If hes not interested in staying in the deal that way, Id also like another option.. Thanks Steve

Thanks Michael, I read most of those posts. Seems most deal with the release etc at closing, since this would be a land contract for 60 months, I dont want to wait 5 yrs lol. Read something about terms and an option but I was getting a little confused by then I think.

How would you get in the middle of setting up a land contract between a seller and current tenants? I guess I mean how would you collect your 2k or 3k fee?

Thanks Jonathon, thats exactly what I was looking for with the mortgage Idea, also like the QC from the buyer to me. That would be the easiest thing to do I guess. Steve, Im not sure if he has something like that but thats a good point. Think the promissory note idea just moved into 3rd place though. Ill have him execute a deed back to me and record it if he doesnt pay, I think hed be fine with that. Are there any cons to doing that over the mortgage and note? Seems it would be a lot cleaner just QC it to me.

Sorry Steve, should have clarified, the seller wants it out of his name asap. He agreed to extend it 8 days from Nov 27th to the 5th, but thats it. I was going to just use a promissory note but not sure how to word it that I get the property back if he doesnt pay me, and hell already have the deed in his name. Maybe Ill just get it QC to me, then to him when paid in full. IDK.. But hell be paying the recording fees for both if I do that, trying to brainstorm here lol.

Got a property under option contract for $1500. Found a buyer for 5k, he gave me $1500 deposit yesterday. Plans on paying it off in 2 installments, $2500 on Dec 5th, and 1k on Jan 5th. Hes a landlord using his rents to pay it. Heres the problem, my option runs out on Dec 5th. I was wondering how I could structure this so the seller can QC to my buyer, and I still get paid the remaining 1k owed to me. The seller and I talked and agreed I would pay him out of the $2500 I get on Dec 5th, then QC to my buyer. After that I need something to make sure I get paid the remaining 1k, or the property reverts back to me with no refund for monies paid or work already done on the property. At this moment, the buyer and I havent signed anything so what can I write up that protects my 1k after he gets the deed, plus, the payment on Dec 5th? I know this isnt the ideal way to do it but, I had to pay rent lol, and this should take care of that for a couple months if it works out. Thanks..

Thanks Michael, and yes I meant the general agreement. I left it alone simply because it did at least have "buyer" on it, but I can make up another one without tenant on it. Thanks Steve

Well, that buyer during the walk through noticed all the wiring in the basement had been cut, so I lowered it to 3500 and he said 3k and its a deal. As long as they agree to pay all the closing costs I said its a deal. Waiting to hear back from both the seller, and the buyer. Seller didnt like the option having the property tied up til april though so asked it be rivised to be 30 days lol, but I tried. So I told him id send over a new one with the revision. Michael, or anyone, would you use the same assignment of agreement in your manual to do this? I just put on it that the assignment fee is 1500, get a check from the the buyer for that, give him copies of the assignment and option agreement with the seller and thats it?

Yes Michael, I actually called the tax office after I wrote that, dont know why I didnt think of it first. Got it straitened out though. Can be quit claimed. After walking through the hoarders paradise I got him to agree to an as/is sale for $1500 on a QC. A buyer is going through at 5 for with a price at $4500 so Ill just be assigning it. I think theyll think its a steal, pretty solid place just full of junk. Well see later!

Ive been in contact with a guy whos selling a property he got at a tax sale. I saw pics online and he said it needed a rehab job and was selling for 8k. Without going to look at it I just said Ill give ya 3k and he said hed accept that offer after the weekend, and I know just enough about tax sales to get me in trouble. Id asked him if it went through both upset and judicial sale, he said as far as he knows yes. He said there would have to be a quiet title to be marketable. I guess my first question is, does he have to do that since he bought it? Or can it be quit claimed or something to another buyer? He called a little while ago so Im hoping its to say lets go on this deal. Ive talked to a few friends and offered it at $4500 2 are interested. Not the best neighborhood, but not the worst. Thanks Steve

Michael, thats kind of what I was thinking. I responded, left it pretty generic, gave my condolences, told her that there are a lot of different ways I could buy, then asked a couple questions about the house. I figured it would depend on how she responded as to what my next move is. I asked about her sisters to, where everyone was at regarding the house etc. Well see I guess. Cole and Jonathon I appreciate the ideas, well see how she answers, if she answers, and go from there, should have a little better idea of what the 3 need collectively.

Steve, I actually did not know you were an investor. I do realize in todays market is leaning towards leasing, but that won't work for me. My mother passed away on Sept. 1st and my two sisters and I want to sell the house. There is still money owed on the house, one of my sisters lives out of town and my other sister doesn't want to any part of it. For the three of us to lease it together wouldn't work three of us would own it, I would be responsible for it. Long story short it would be easier to just sell it. The house really is in great shape with a beautiful yard, creek in the back, it would be a nice purchase for someone. I appreciate your input, this is all new for me. I welcome any help I can get. Thank you. It sounds to me like she just doesnt want to be the one taking care of the property and there might be something I can use. Not sure how the other sisters would feel about anything, but Id like to send her an email with some kind of solution and see what happens. Thanks be the pros!

haha funny

Michael, yep, plan on keeping all of it, and he knows it already. Dont the rent credits just come off the purchase price? And since the seller is getting those as well, I wouldnt have to market higher to compensate? I believe the market in the area would support his asking prices though. Just got home and going to go over the numbers again though, running comps or whatever