Re: WOW! Lets get this straight!! Send me an email for contact information if you have a deal to discuss. Jeff
OKay, seriously, all hypotheticals aside, as a former NYC landlord, first you need to clarify/be very careful about the owner, rent control laws in NYC, as they are set up specifically to prevent the situation you are trying to enact. Secondly, i would also be very interested in this deal if i can find out all the details, email me. Thirdly, you may need to see a NYC lawyer who specializes in rent control laws to avoid any litigation from the renter's end. OT-- My goodness, Hawg! why do you respond to every "questionable" post on this board! are you the second coming of a third rate apostle of the Buddha, Jesus, Mohammed, or the Dalai Lama? I am always up for a discussion on spirituality, values, morality, or good vs. bad, so if you want to discuss these things feel free to email me. But the pissing contest between you and Lbrown is DISRUPTIVE as you are hijacking other people's threads. i am really having a hard time understanding why you are on this board. you pay all your bills on time, you would never use the consumer laws set up for consumers because you feel that is in someway dishonest, what are your motives?!
I am assuming I cannot get her out, because im sure the current owner would have her out by now. In any case, I was looking at this as a easy way to "borrow" 1,000,000... I would have to pay it back over the long term, unless I defaulted or sold it to another investor or the tenant left and I could sell it at fair market value. Also, i dont think its "illegal" to let a loan go into forclosure. They lent me money on an asset. I don't pay, they can have the asset. Why is that immoral to some of you? I didnt wrote the rules, I am just trying too see through them. Anyway, this discussion is for thought provokers only, not the Dalai Lama. I cant wait to hear you say "its immoral to dispute a CRA when you were in fact late..." Klunk
Re: WOW! Lets get this straight!! BTW, I am not a broker, do not need to find a lender, $$, get approval of partners, etc. I have the necessary financial and legal resources to move on a good deal immediately.
This sure sounds like a sweet deal, but sometimes if it's too good to be true then it's too good to be true....
Another reason not to do this is that when the bank forecloses on the property and then sells it, any amount that the bank loses they will report to the government as income. so heres the senario the bank gives you 1,500,000 you pay 500,000 and pocket 1,000,000 the bank forecloses on it and auctions it off for 500,000. the bank loses 1,000,000 and reports to the IRS that you made $1,000,000. and now you owe the irs something like 40% of that.
I typed a message, but I take it back. However, you just plain don't want to do a transaction like this intending to go into foreclosure. The bank has no incentive to get top dollar for this, they just want to dump it. And if they dump it for less than you owe, you're on the hook for the difference. If you want to buy it as an investment, figuring that you can sell it off for more than $500k if you put time into it that the current owner doesn't have (or if you're just willing to wait until the young lady croaks), then go ahead. But why let the bank dump it for cheap when YOU could sell it for a lot MORE? That's just flushing money down the toilet. Btw, the bank won't lend you the money just because the appraisal comes in so much higher than the sale price. You actually have to QUALIFY for the sale price. If you can't pay it, you can't buy it.
Re: WOW! Lets get this straight!! Oh... I get it. Buy the property cheap. Hire a hit man to kill the rent-controlled tenent, then sell the place. How much are hit-men charging these days?
TRYOUT!! BRAVING THE STORM!!! Ok, here we go! I found a similar condo deal, for 175k asking price. I offered 150, they countered 165. so now I will offer 155k. I will then pull a re-fi, same day, for $350k (condo valued at 400k vacant.) If this thing works..... Oh, just for the record: the condo loses 3k a year, which will afford me a tax savings on my current income. This is before mortgage payments, which will be on 350k something like 2500 a month. tenant is in 70's lives alone. Will he ever die? (i dont mean that in a bad way!)
Re: TRYOUT!! BRAVING THE STORM!!! OUCH! I'd like to know if you like the idea... or what... what's up with the tone of your post?
