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This is pretty much true. Yes, it's his fault for getting in over his head to the point where he couldn't maintain his properties. Neither one of the properties really attracts high quality tenants and he has problems with lots of them being late with the rent every month. The properties are paid for though- it's paying the property taxes that's the issue for him. It's an unfortunate situation, but I don't know what the best solution for him would be.
Oh, good grief. Tell them to sell one property to pay off the other, fix up the remaining one with any money left over, sell that, too, and be done with it.
Honestly, millions of Americans can't afford ONE home, and they have three. Investment properties or not, they need to get a grip.
Call a realtor and find out the value of the property. If it is worth it, pay the back taxes and sell the property. Evaluate the second property with same realtor so you know what to do. Sigh. I always find that common sense is not very common.
If I pay the back taxes, my dad plans to keep the property. He said if he fell behind on the taxes again, he would sell it at that point. Since it's not in the greatest condition or in the greatest neighborhood, I don't think it'd be worth all that much and he might not be able to sell it quickly, so no guarantee that I could get my money back any time soon.
If I pay the back taxes, my dad plans to keep the property. He said if he fell behind on the taxes again, he would sell it at that point. Since it's not in the greatest condition or in the greatest neighborhood, I don't think it'd be worth all that much and he might not be able to sell it quickly, so no guarantee that I could get my money back any time soon.
You might want to check on that. I have a friend who "purchases" houses just by paying back taxes on homes that other people owe the property taxes on. That makes him the owner -- I'm not sure about all the details, but you might want to check. That way the property would be yours to do with -- dispose of -- as you see fit, and you can give a portion of the proceeds, if you want to, to your parents. Or not.
You might want to check on that. I have a friend who "purchases" houses just by paying back taxes on homes that other people owe the property taxes on. That makes him the owner -- I'm not sure about all the details, but you might want to check. That way the property would be yours to do with -- dispose of -- as you see fit, and you can give a portion of the proceeds, if you want to, to your parents. Or not.
That's what happened already. He's going to lose the house to the investor who paid off the taxes when he originally fell behind more than a year ago. I have no interest in owning the property.
That's what happened already. He's going to lose the house to the investor who paid off the taxes when he originally fell behind more than a year ago. I have no interest in owning the property.
Oh, dear God - just let the house go. This is Investment Stupidity 101. Just let it go. It's too late. BTW, your dad is no longer some real estate guy - he has boinked into the land of dumbness. Let them go. He may have made his "real estate investments" work for a long time, in an inflated world - but that just crashed. You should have no interest in owning this house - it's a losing situation. I know I sound mean - but you have not told us the total picture - this is a disaster. Shame on you, for making us pull details - important details. Good God.
I absolutely agree with you. My dad has been in the real estate business for a long time, but now things have really gone downhill. He used to have around seven properties, but he unfortunately lost his most profitable one a few years ago, which is causing the financial problems and he hasn't been able to get back on track since. The property that's in danger of foreclosure now really isn't in great shape so even if he did want to sell it, it might take a long time to do so and he probably wouldn't get much money for it. I don't want to see him lose it, but at the same time, I don't feel like it has much value and it's costing him money to keep it.
Ok, after reading other posts I decided to quote one of them. First off regarding other post, If your parents go down so will you because whatever they own you will eventually own. If they go down hard well then you can kiss your inheritance goodbye forever. As a child you should support your parents all the way. If my parents were in trouble I would surely be there for them to watch their ass every step they take to recover. As a family I always learned to stick together. FAMILY is FOREVER. Family is suppose to help each other in rough times. I am italian this is how I was raised.
As with his investment properties the fact he had seven and down to two is strange. If he doesn't know how to manage rental properties then he should search for a property management company. If rental income does not cover expenses then it is producing negative cash flow. If income property does not make any profit it has to be sold (when monthly expenses are more then monthly rent). If tenants weren't paying then they should of been evicted by now. As a son you should of stepped in and helped to manage the properties along side your father. You could of known what was going on ahead of time and possibly solve the problem before it grew. If you were that concerned about your parents you would move back in with them to help pay bills, or let them move in with you so they could rent out their home for more income. If your father just decided to stop making mortgage payments that is another story. There is still time to improve this situation.
I am glad that people now know that real estate investing is not always as easy as it may appear.
So basically, over the past two years, I've loaned my parents $4500 and $3000 in lump sums. Now, they need to borrow another lump sum of $6500 and I'm not happy about this. They need to borrow the money due to recent hardships and basically just not being very good at managing money and not having sufficient credit to get a loan. I'm their only child and I'm single with no children so I just support myself. Loaning them the money isn't going to necessarily make it difficult for me to pay my own bills, but my issue is that I know they can't pay it back any time soon so loaning them money is basically like throwing it into a black hole. I've received no payments toward the $7500 I've already loaned them so I know it won't be any different with the $6500. Maybe I'll get it back eventually if they die before me and I'm able to collect on their life insurance policy but hopefully they won't be dying any time soon.
In their defense, I know they don't like asking me for money and they would pay me back if they could AND they are trying to get back on track financially. I don't plan to loan them any more large amounts of money after this, but once again, I'm their only child so if something really serious comes up, of course I'm going to have to help them out. But it's just a very frustrating situation and it pains me to think about how my bank account could look if I had parents that were a bit better at managing their own finances.
So this is basically just a "woe is me" rant. Can anyone top me and talk about the thousands of dollars they've loaned out and haven't gotten paid back so that I can feel a little better?
Well, this is a contest to see who has been foolish enough to loan people money that never pay them back. Tell your parent no, simple. If they haven't even paid you a cent of the money they already owe you it would be ridiculous to "loan" (give) them more money. So what that you are their only child, it is not your duty as a child to support them. They are never going to learn how to make it on their own financially if you keep bailing them out everytime they get into a mess.
Ok, after reading other posts I decided to quote one of them. First off regarding other post, If your parents go down so will you because whatever they own you will eventually own. If they go down hard well then you can kiss your inheritance goodbye forever. As a child you should support your parents all the way. If my parents were in trouble I would surely be there for them to watch their ass every step they take to recover.As a family I always learned to stick together. FAMILY is FOREVER. Family is suppose to help each other in rough times. I am italian this is how I was raised.
Oh, well I'm not Italian. I wasn't expecting to get an inheritance aside from maybe life insurance so I'm ok with that. Do you have any examples of how you've supported your family or is this all hypothetical?
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As with his investment properties the fact he had seven and down to two is strange. If he doesn't know how to manage rental properties then he should search for a property management company. If rental income does not cover expenses then it is producing negative cash flow. If income property does not make any profit it has to be sold (when monthly expenses are more then monthly rent). If tenants weren't paying then they should of been evicted by now.
I guess he doesn't feel like he's having trouble managing the properties himself. He just thinks he's had a few setbacks and needs a loan. According to him, the eviction process takes too long and if he waits it out, they'll eventually pay the rent sooner than he could've evicted them and found another tenant.
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As a son you should of stepped in and helped to manage the properties along side your father. You could of known what was going on ahead of time and possibly solve the problem before it grew.
I'm his daughter. I'm not going to step in and help him manage properties when I know nothing about real estate. I'm not going to jump in and act like I know everything when he's been in this business all his life. I have my own career.
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If you were that concerned about your parents you would move back in with them to help pay bills, or let them move in with you so they could rent out their home for more income.
I did contribute to household expenses when I lived with them, but I don't want to move back in with them because if they become reliant on my financial support, I'd pretty much be stuck with them forever and could never move back out on my own. But yes, they would be happy if I moved in with them and that's something I would consider if they were elderly and needed me to take care of them. My place is not big enough to move them in with me.
I don't think I could let my parents go broke if it was within my means to help. If they need money to pay the taxes, I'd give it to them, in exchange for having my name added to the deed. it could be a good investment opportunity for you OP.
You realize if the financial issue continues, and the property went into foreclosure, the deed would then be a public record, barring whoever was on it from buying a home for at least three years (FHA lending) or seven years (Conventional lending), correct?
Bad, bad idea.
OP:
You need to stand firm and tell them you are no longer able to provide financial assistance. You are not their personal ATM, and you should not be responsible for their financial burdens.
I personally would stand firm, say no, and let whatever may happen, happen. I'm far more driven by my own sole, personal self-interests than family-driven, however.
If you do not have the financial muscle to support it, then let them default. Bankruptcy at that age is not going to do anything major.
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I wasn't expecting to get an inheritance aside from maybe life insurance so I'm ok with that. Do you have any examples of how you've supported your family or is this all hypothetical?
