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June 19, 2012 at 10:39 AM in reply to: Cash-Only Buyer activity up…according to the tribune… #746082
SD Realtor
ParticipantIf we took into account and averaged out the UT on re issues I would put the number at about 2 years (on average).
ParticipantVintage pinball machines rule!!!
Participanttoo funny…
ParticipantFLU I would have to look back at the tax roll… It actually may have been 03… maybe late 02? We bought a 1/1 in the Mission Plaza complex. I believe that is late 70s vintage stuff. I wanna say we bought it for 153k and then sold it for 200k even to the tenant in 07. Could have sold it for 240k at peak. We did not cash flow on it… We were about .5-1% negative flow but we had a great tenant from purchase of the home until the sale was made.
Getting back to the question posed by the poster, at least from the quality of tenant we not only had a good one, but many of the applications were also pretty strong.
ParticipantI owned an investment condo in Mission Valley. We purchased it in 03 or 04, not a great time to buy, and sold in 07. It did not cash flow well but we made a nice profit with regards to the appreciation.
As far as tenant quality, we had strong demand for very well qualified tenants. We ended up getting an engineer who eventually purchased from us.
ParticipantI had one of those pinhole leaks you speak of!
ParticipantWell you know in some of those far flung areas that need to bring in the pipes by helicopter or paddleboats.
ParticipantThe cost for the drywall repair and painting almost outweighs the actual replacement of the polybut. It all depends on the distances, etc…
ParticipantAs sdrealtor pointed out, you can simply walk away if the seller cannot coerce the tenants into leaving.
If you refer to the standard residential purchase agreement, there is terminology that obligates the seller to deliver the property to you unoccupied. As sdrealtor pointed out, you can go through escrow, get your inspections done, do everything that you need to do presuming this will happen. When you come up to the closing date and you need to sign the loan docs, if the tenants are still occupying the home, then you don’t sign the loan docs and walk away.
Now, you will be out the money you paid for your inspections, appraisal etc, but that is a small price to pay. You can try to get the seller to cover those losts costs after escrow is canceled but that will be your task, not your realtor’s task. It will most likely involve small claims court. You can attempt to obligate them contractually and to be sure the default will be the sellers fault, but trying to get blood from a turnip is never easy.
You may think the bank has a vested interest in this but they do not. The bank will either get money from the short sale or they will get money from an eventual foreclosure. Don’t delude yourself and think the bank needs the money. The banks have all been bailed out to the hilt so they have no vested interest in anything. The only think the bank has a vested interest in is removing any and all liability from everything they do. No bank would ever obligate themselves to any obligation from a tenant. There is no relationship between a bank and a tenant so why should the bank create that relationship? Makes no sense.
ParticipantThe banks have nothing to do with the tenants or the lease that is currently in place. A short sale with tenants is not any different then a standard sale with tenants. Understand that the lease is between the tenants and the landlord and that the conditions of the lease will still be in place once the sale is complete.
Any conditions that you want to impose on the seller with respect to having the tenants out of the home prior to the close of escrow will be between you and the seller. However when close of escrow rolls around and the tenants are not out, then your recourse will be to either back out of the deal, or stay in the deal and deal with the tenants. At the very lease get a copy of the existing lease so you can check the time frame on when the lease expires.
Just remember the banks have absolutely nothing to do with the tenants, nor do they care. All the negotiation is between the bank and the homeowner.
As a first step, ask for a copy of the lease. Have your agent ask the listing agent about the situation with the tenants. Plan your strategy after you find out more information.
I have had short sales where there were tenants in the home and they always were out prior to escrow. I have heard stories about people that were not able to get them out.
ParticipantPretty well said Desmond. I would add that I would much rather pay money and expose my kid to sports camps, exploring camps, masters of science camps, and stuff like that, which are not cheap rather then have them sit around and watch tv which is very cheap. Same thing with taking them on trips, or fishing, camping, visiting relatives, ballgames and stuff like that. Maybe even learning a musical instrument. My kids love to swim and at first they were down on swim lessons… We did it more for a safety measure then anything else.
The thing I have learned as a parent is how fast it goes by and that the fun period will end once the kid is 13 or so. Then they pretty much don’t want to have anything to do with you.
Forgot to add they loved karate lessons as well.
Add that stuff up over several years and multiple kids… It is not cheap but they enjoyed it all.
ParticipantThose damn flippers….
Participantno non no no… the tsunami is still coming and ron paul will indeed get enough delegates to throw the republican convention into an uproar.
I will bet on it!
ParticipantSounds like you guys live in a s-ithole…
Maybe you should have consulted with someone who lives close to the border and is not at all familiar with the neighborhood before you bought there…….
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