Posted by John(ny) on February 03, 2005 at 07:53:17:
The #'s i crunched up were…60K@6%X30yr=359.73,
taxes 3K=$250.00mo.= $609.73($610.00) mo. Now, i did forget ins. somewhere at $400.00yr=$40.00 mo.
So total debt service $650.00. Should rent very easy right now at $750.00mo., so the $140.00mo. poss. cash flow is reduced to $100.00.w/rent increases over next 10 yrs., then sell FMV. Geesh, doesn’t really look so good right now, til 10yrs. is up. Thanks
Yes, NO, Maybe…(long) - Posted by John(ny)
Posted by John(ny) on February 02, 2005 at 20:47:49:
Been researching real hard MH deals(lonnie deals), and just about set to jump in with both feet, when all of a sudden something seemed to jump right out at me. Been right here in front of me, and i didn’t see the forest for the trees. O.K. Here’s what i need some “expert” advice on. My wife’s mom passed away back in May. She owned her own home and property free and clear. 2 story, 4bd, 2 bth. on approx. 3/4 acre fenced lot. Home just recently re-assed
at 97K. It’s about 3 country blocks from our own home.
Good neighborhood, schools, etc. etc. With my wife, there are 4 heirs, with 3 of them all chompin at the bit to get everything sold off, so they can split the money. The 2 oldest are the executors, and even tho the house was about the only valuable thing she owned, you’d think that there was a “million” $ estate involved. The 2 executors are VERY
money hungry, and just want to as fast as possible sell the place for as much as they can get, and the third sibling will go along with the other 2. I won’t go into detail, but their “greed” has them acting like cats and dogs, and the 2 execs are trying to figure out a way to
make out better than the other 2.(how many can relate to this sick scenario?) O.K. here’s “MY” point! The house could probably be bought for about 80K, which is probably min. 10/15% under FMV. They will most likely list with a realator. So could “I” make an annoynomous(?) P/O for 80K
In reality, if they accept, i’d only have to come up with 60k, cause 25% of the sale price goes to my wife. Now we’ve got us a good long term rental with someone else making the payments, etc. The reason i worded it the way i did, is because if the other 3 knew i(we) were the buyers,
they probably wouldn’t sell for that money. O.K., morals aside, could this be a pretty decent deal if it works the way i think it can. Besides, after all they’ve put their sister(my wife) through, they deserve exactly what they “don’t” get!! BTW, financing for this should not be any problem. Our credit is A+ with 800+ FICO! Any and all “knowedgeable” advice sure would be welcome. Thanks to all in advance.
Yes - Posted by jasonrei
Posted by jasonrei on February 04, 2005 at 09:04:52:
I’m assuming a $97,000 value. You’re buying for $80,000 but in effect only need to come up with $60,000 as one of the owners is willing to carry their portion.
I don’t see the problem here. You’re buying a home $80k that’s worth $97k. And you’re familiar with the home to boot, and it’s just blocks away. You can get conventional financing.
I wouldn’t want the deal if only because I wouldn’t want my name on the debt, but if you’re willing to obtain conventional financing, this is probably a good deal.
As for burning bridges and all, I wouldn’t care. I love my brother and sister, and we get along very well, but if I didn’t like them I certainly wouldn’t try to force the relationship. Live for you, and do the deal.
Re: Yes, NO, Maybe…(long) - Posted by Heather_Tx
Posted by Heather_Tx on February 03, 2005 at 12:34:15:
Actually my family went through this scenerio a few years back… My mother and her brother were the only Heirs of my grandmothers will. His wife (of about 4 years) decided she wanted it all.
We are talking down to the silly things. When I was a very little girl, my grandmother had huge jars of pennies, we would sit around with her and count them out, and get out the books to see how much they were worth for their year… ect ect. Seems silly but it was time us grandchildren all spent with our grandmother. Our one wish was to get one jar of those to keep and remember her by… so my Uncles wife took every jar to Krogers “coin rolling machine” and dumped them all in. Mind you some of these were worth $10/each or more and there were 4 20 gallon jars full. It was spite but made us angry.
The next day before the funeral even happened they cleaned out their share of the bank account and went on a shopping spree for new furniture. Within 3 months their 50K was gone… along with the house and car.
We were very angry about all this, it almost tore my mother and her brother apart… but in the end what good would it have done to let them control our emotions… it wasn’t worth it, spending all my time angry,so I just let it go and figured the fates would deal with it in their own way.
Within 6 months my aunts son was killed on the job, and within a year she had cancer and passed away. Now I am very glad I just held it all in as I feel like, these things maybe didnt happen becuz of her actions, but at least my mother and her brother still consider eachother family. Had we all gone crazy at what she had done, my mother would have lost her brother for life… it’s just not worth it. Be the bigger person and just let go. You are walking into this emotionally, and in real estate that is a very bad thing. It should not be a business where your emotions speak for you.
Hope this helps,
Re: Yes, NO, Maybe…(long) - Posted by TH
Posted by TH on February 03, 2005 at 07:35:17:
Randy from Ohio has the correct answer. Take your wife’s share and invest it in Real Estate. It’s money you would not have had anyway. I too am in this same process. Remember, it takes a very LONG time to get through all of the probate process etc. There are hidden expenses as well, ie: legal fees, taxes etc…
Enjoy the ride, it’s a long one.
Re: Yes, NO, Maybe…(long) - Posted by John(ny)
Posted by John(ny) on February 03, 2005 at 07:33:40:
Thanks for all your repiles. Guess i’m really missing something here. House asses’s for 97K, can buy for 80K, which only will require 60K cash(meaning wife will get her fair share, 25% of 80K=20K of value.)
Now, “we” can rent out for $140.00 month poss. cash flow, plus have tax advantages, etc. Hold for 10yr.
til retirement, sell at FMV, and profit heck of alot more than 20K. Now as far as anything “sneaky”, they
could do the same if they so choose, they want nothing from the house except the “money”. Without going into detail, anybody out there who’s gone through this, probably knows of what i speak when i say, the one thing you think should draw a family closer, seems to be the very thing that tears them apart. So the animosity has already been established,
and will last til my wife’s dying day. This is the
sick sceneario i refered to.(their part, not hers)
O.K., i guess my ? should be, “what” (if anything)
would make house a worth while prospect, given the
#'s. Or should i just, study a whole lot more, buy a few more books and courses, and stick to mobile homes?
Re: Yes, NO, Maybe…(long) - Posted by IA Jeff
Posted by IA Jeff on February 03, 2005 at 07:06:58:
I don’t see it as such a bad idea…buying a 97k house for 60k for a newbie. Although, 20k equity exists and could be used to buy several Lonnie deals if you where to sell to a true stranger.
If you do end up making an offer, make sure you do not try to influence acceptance of the offer any way at all unless, you want to burn the bridge forever with the family. If they think you pulled one over on them they will be pi$$ed…even more so if you say anything other than “I don’t care” when asked wether or not you, as a family, should accept this anonymous offer.
Now what can you rent this 97k house for? That answer will tell you if it is a good deal.
Executors - Posted by Clint
Posted by Clint on February 03, 2005 at 05:14:00:
Executors of wills generally get more of an inheritence because of the time associated with wills, etc. Your wife should continue living, as though there is NO inheritence coming.
Best of Luck,
Re: Yes, NO, Maybe…(long) - Posted by Skip
Posted by Skip on February 02, 2005 at 21:43:03:
They will sell the house to a stranger for $80k, but not to you. So you want to buy the house anonymously for $80k. Why? Maybe you want to reveal that you tricked them after the deal is complete. But it isn’t much of a trick; if they accept the offer, they already know the price. The only thing they don’t know is the identity of the buyer (you). You now own the house, which you bought at practically full price. Is that going to make them angry? If so, you’ve created even more family animosity than you have now, over a house that wasn’t even a good deal to begin with.
As Randy said, you’re not getting much of a discount, it’s too much hassle, and your wife will get her 25% whether you’re involved or not.
You’re probably better off making sure they sell the house for top dollar and that they don’t try to cheat your wife out of her fair share.
Re: Yes, NO, Maybe…(long) - Posted by Chris (WI)
Posted by Chris (WI) on February 02, 2005 at 21:15:27:
I think Randy has some good advice. Even if you could buy it anonymosly, they will eventually find out and you probably don’t need the headache. But, if you really want to buy it have an attorney form an LLC and give him the power to sign everything for you at the closing. The LLC doesn’t give you perfect anonymity but they probably won’t go looking.
Well… - Posted by randyOH
Posted by randyOH on February 02, 2005 at 21:01:12:
Unless you are in a very hot market, 10 - 15% is not much of a discount. I would think you could do better on something else with a lot less family hassle. Your wife will still get her share whether you buy her mom’s house or another one. So you can use her share of the estate to get a better deal somewhere else and maybe save some hard feelings.
Re: Yes, NO, Maybe…(long) - Posted by John(ny)
Posted by John(ny) on February 03, 2005 at 16:40:45:
Thanks for your reply. Guess i’d better clarify a little, cause it seems like the intention of my original post is getting way off course. While it is true, my “wife” is one off the heir’s in question,
and all things considered, she’s taking things pretty much in stride. As for me, i am no more than an in-law,with absolutely no say in the matter what so ever, and for that i am thankful. And yes, i do feel
for the “hurt” my wife is going through, but am trying my best to stay as neutral as possible. If the siblings never talk to each other again, my wife’s and my life will go on as planned. And also, any monies she may inherit form this sad ordeal is hers to do with as she pleases. So in reality, my emotions
only play into this to the degree that i was curious
about the house with the numbers(altho) not exact,
from what i’ve been able to find out with comps, and knowing the degree of “greed” of the powers that be,
if this might be a good opportunity to help my wife
increase her profit over a period of time that the other sibling’s choose not to care about doing.
“HONEST”, there is no other motive. The idea about the annoynomus(?) P/O was to “not” add fuel to the fire. Basically, just with the info of #'s on the house, if this might be a “good” deal or not. But i guess from the replies i’ve gotten, the ans. appears to be “not”, so…guess i’ll just leave it alone. But “Thanks to All” for your replies!!!
Re: Yes, NO, Maybe…(long) - Posted by Skip
Posted by Skip on February 03, 2005 at 09:15:55:
John, I didn’t say there wasn’t already animosity in your family. I just said you’re making it worse by purchasing this property. This animosity seems to be affecting your judgment – you want them to get what they deserve. I still think if you can’t but this property openly (ie, revealing youself as the buyer) you shouldn’t do it. It’s not as if this is the only deal out there.