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There will be a twist at the end so I can get an answer based on just the business aspects.
I am a renter and there have been no issues with late rent and everyone has been basically happy. The property is a farm with multiple separated dwellings. Sometimes there is an issue with the utilities failing, but we all give each other slack. The main house stays mostly unoccupied. Well, 3 times in the last 90 days that manager has, while drunk, bragged that he has stolen from the owner. In one case, I, with permission, built a brooder shed for myself, at a cost of $700 to raise my ducklings. I found out that the manager who was happy to pick up the material load at Home Depot had actually took my cash, then charged the purchase to the properties credit card, he is an authorized user, but the owner paid the bill. This "scam" has now repeated more times. The manager building something for his personal benefit on the card and having the LL pay it. He has even found a combo hardware/liquor store/gas station who will ring up purchases of beer and personal gas for his car and ring it up on the receipt as building supplies.
Anyhow, the LL is putting up the property for sale in March because she lost her $1/3 mil/year job and considers the place a money pit. Many years ago I owned rental property and KNOW this place is in reality profitable. The LL has owned it for 6 years and does own it outright.
Now the kicker: The manager and LL are husband and wife. She once told me that when she bought the place, that 24 hrs before escrow closing, the bank demanded that the husband sign a quit claim or the bank would not lend. She paid off the place completely 9 months ago.
Do I make her an offer on the place knowing the Manager (husband) will initiate eviction proceedings in anger? My credit stinks from some problems from 8 years ago, but I could make a 10% down payment based on current market value.
Do I send an anon letter suggesting financial impropriety?
I have enough respect for the wife and what she has accomplished in her profession life to not want to see her make a descision based on fake info from the husband. I would really like to take this place over. Plus it would save her about $20K in realtor fees.
Since it's a husband wife team I would think twice before getting involved. Unfortunately the husband wife team are not a team. Sounds like its actually embezzlement. Them being married doesn't matter if it's her business It's still theft
Now if he is the rightful owner it's not illegal fir him to take his own money. What is illegal is him not reporting the income.
The manager/husband is stealing from his wife. Unless this lady is your family member or best friend I wouldn't say anything. At least not until you're gone or it's sold. Then feel free to push him in front of the bus
If you were just a neighbor and knew it sure spill the beans. I don't think you could send a anonymous letter without him knowing who sent it
However I would send her a letter saying you want to purchase the property. If she agrees and the house sells buy it and walk away. But this is a good no it's a great example as to why you always vet a manager and you always do a P/L statement and track where your money is going. Granted it's just me and my wife, but I never give anyone else access to our money. And nobody is allowed to have a cc to just use. not even emergency. I have consulted and helped new LLs in setting up a way to self manage properties, how to vet a contractor, handyman, and basic structure in being a LL.
Thank you, your advise was a good reality check. I was in real estate 20 years ago and when the manager (who I had done farm work for for 6 months before moving in here) told me that the bank, Wells-Fargo requires that he sign a quit claim as a condition of mortgage approval, I really started wondering what would prompt THAT.
I am a bit worried about retaliation if I make an offer on the place, but I guess what the heck.
Funny, I have a fenced off 50x150 area with 400 ducks and made about $8K in NET profit last year. He, on the rest of the 12 aces with 1600 chickens, lost his shirt.
I was in an especially agitated mood tonight. They live 70 miles from here and he arrived too drunk to stand today.
Make a offer. If it's her place and she is looking to sell it may work out. I had property far away and I always was willing to sell to the occupant a bit cheaper. Simply because it was easier to go through a broker and lawyer and less headache to sell because the person there already knows the house and its quirks. And the lower price sort of takes care of me having to do anything fix it type.
Get your loan, finances and approval in order and make a offer.
You grow the ducks for food or eggs or both?
Yeah if I had a LL and he arrived drunk my first call would be to his wife to come get him and the next would be to the cops if he got belligerent.
Not sure why the bank would want him to quit claim it unless he had crap credit and it was bought in her credit and bank inky wanted her on the deed/mortgage. Sometimes a couple buys one house in one persons credit and another house on the other persons credit. This way the bank can't go after both in a financial issue as they could if they were both on the mortgage/deed
Since she owns outright now, I would ask her to owner finance with a 5 year balloon, and be prepared to accept up to 2 points over market because of my credit. And with 10% down.
Last year he evicted someone, and was drunk on the night of the final move-out, locked the gate, would not let here leave unless he could inspect the contents of the U Haul (she was a theif). She called Sheriff, sheriff took the attitude of, you have to let her out, but to her, look he can toss you out for any reason in 30 days so just play along. She still managed to get out with my $200 incubator and the dining room chandelier of the main house. I live in a separate dwelling unit 2000 feet away up the hill.
What's the harm, make her an offer...but seek a conventional mortgage...you do not want to remain associated with this couple going forward in any capacity.
What's the harm, make her an offer...but seek a conventional mortgage...you do not want to remain associated with this couple going forward in any capacity.
As long as its she alone that the OP would be buying from, I think it would be OK to do the proposed deal in the short run. But at the point the deal was signed, I'd start looking for other financing. If she's halfway intelligent, she's going to catch on to him at some point, and you do *not* want to be part of the divorce spoils.
There will be a twist at the end so I can get an answer based on just the business aspects.
I am a renter and there have been no issues with late rent and everyone has been basically happy. The property is a farm with multiple separated dwellings. Sometimes there is an issue with the utilities failing, but we all give each other slack. The main house stays mostly unoccupied. Well, 3 times in the last 90 days that manager has, while drunk, bragged that he has stolen from the owner. In one case, I, with permission, built a brooder shed for myself, at a cost of $700 to raise my ducklings. I found out that the manager who was happy to pick up the material load at Home Depot had actually took my cash, then charged the purchase to the properties credit card, he is an authorized user, but the owner paid the bill. This "scam" has now repeated more times. The manager building something for his personal benefit on the card and having the LL pay it. He has even found a combo hardware/liquor store/gas station who will ring up purchases of beer and personal gas for his car and ring it up on the receipt as building supplies.
Anyhow, the LL is putting up the property for sale in March because she lost her $1/3 mil/year job and considers the place a money pit. Many years ago I owned rental property and KNOW this place is in reality profitable. The LL has owned it for 6 years and does own it outright.
Now the kicker: The manager and LL are husband and wife. She once told me that when she bought the place, that 24 hrs before escrow closing, the bank demanded that the husband sign a quit claim or the bank would not lend. She paid off the place completely 9 months ago.
Do I make her an offer on the place knowing the Manager (husband) will initiate eviction proceedings in anger? My credit stinks from some problems from 8 years ago, but I could make a 10% down payment based on current market value.
Do I send an anon letter suggesting financial impropriety?
I have enough respect for the wife and what she has accomplished in her profession life to not want to see her make a descision based on fake info from the husband. I would really like to take this place over. Plus it would save her about $20K in realtor fees.
I think you better butt-out before you and your ducks are looking for a new place to live. If you want to buy the farm, then make an offer. Otherwise...back off and butt out.
Koale
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lol...
