Posts Tagged ‘real estate help’

An Investing Idea

November 15, 2016

I have a goal to own rental properties. Might be a good fit for me considering the business I am in. As a bonus I get to see many different business models for investing in housing. The other day I heard of one that I have not seen before.

I participate in a coaching program that offers more than just sales advice. We believe in a well rounded life that includes growth in 5 different areas. Spiritual, family, business, financial and personal are the 5 Circles we intertwine and balance. The founder of the company not only tells it like it is, he practices what he preaches. During the recession he liquidated $30,000,000 that’s 30 Million in real estate holdings to keep his business alive. He had one commercial building he left empty for a year. He was able to do this using an investment system that helped him succeed. Hmmm, he has captured my interest again.

So how’d he do it you say? I’ll tell ya. He would buy a property and hold it. He would not buy another property until he owed less than half on the property. Less than half! What about leverage, what about the great deal sitting in front of you. Nope he said, just wouldn’t do it no matter how badly it fried his backside. Considering he did not lose everything like others did I have to consider what he says quite seriously.

I am reminded of a call I received on day as the recession was beginning. The buyer wanted to buy million dollar properties for $500,000. I laughed and then asked why I would not buy them myself for that price. He said I could not buy them all. I loved that response. I can’t possibly buy every deal that comes to me. I only wish I could. There will always be another opportunity. So perhaps the 50% idea is not that farfetched as it sounds.

Some investors use a cash only model, some use the 20% down, some use 20% down that they borrow and many other models. I would prefer to be an all cash investor. Perhaps 20% down and then wait and be patient might be better. Hmm time to think. All the Best Richie Rich

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What Happens When A Seller Won’t Sell

August 16, 2016

Now everyone who reads my column knows I am a Realtor, not an attorney. If you want legal advice please consult an attorney. Now you also know whatever I say next is going to be really good so hang on. What does happen when a seller chooses not to sell?

In the purchase and sales agreement it says the buyer automatically gets their earnest money back. The seller is also required to pay for costs of title insurance, a whole bunch of miscellaneous expenses and attorney fees. Sounds reasonable so far and then comes the next part. This payment does not waive any of the buyers lawful rights or remedies. SAY WHAT! YES it means there may be more the buyer can do. What can a buyer do? Well…

The buyer can pursue legal action and sue for specific performance. The WEX Legal dictionary defines specific performance as A contractual remedy in which the court orders a party to actually perform its promise as closely as possible, because monetary damages are somehow inadequate to fix the harm.  Most commonly ordered in cases involving real property and rare chattels. If you want a better definition Harvard has a 39 page report you can read. Basically the court will order the seller to sell.

WHAT! Is this like eminent domain? No. The court can order the seller to sell the property under the terms of the contract they agreed to, no eminent domain. Why can’t the seller just give the buyer some money? Pay for all the damages Rich? Well, I’m no attorney; however I believe that the Court does it to make the buyer whole. Every piece of property is unique and because of that the Court believes the only way to make the situation right is to make the seller complete the deal. I am certain there is a very legal reason why this occurs based upon years of law. As the definition says, it is done because monetary damages are somewhat inadequate to fix the harm.

To be honest my dear readers I have heard of this being done. I am not certain why a buyer would choose this path however it is their right under the law. Next week, what happens when a buyer doesn’t buy? All the Best Richie Rich


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