re: Giving an eviction notice on a violent renter next week. (UPDATED IN OP)

Guy, I've got watches worth more than OP's crack houses (individually not collectively). I make my money by doing an honest day's work. Not by swindling the poor.

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This guy legally buys a house, which probably would have become abandoned / crack house otherwise, and sets up a guy to become a homeowner. A guy that probably would never had a chance at that otherwise, with a note of about $600 month and you call him a bad guy. Gary my man , you need a reality check.

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Keep this fairy tale bullshite on the poli board. Flipping a house for 3x its market value is only going to keep the buyer (can we even call him that, given the eviction issue?) in poverty forever. Can he sell it for what he paid? No. Can he get a mortgage on it for $35k? Hell no. I'm curious what the homeowners insurance policy looks like, but I'm sure the OP would do the right thing and pay out to his buyer if there was a catastrophe.

The only person OP is "setting up" is himself - he'll probably sell this same house 4 or 5 times.

I never realized the MB was so full of wanna-be loan sharks.

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Flipping a house for 3x its market value is only going to keep the buyer

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He bought it at auction for 15k so market was probably 22-25k. Selling it for 35k is a far cry from 3x market value

Well I paid $200 for it but I'm leasing it to a guy with no credit for $150/mo for the next decade.

The buyer would never have a chance to own anything if OP didn't make this type of deal. I have some low income properties and hav been called as you so eloquently put it a slumlord. These people have to live somewhere and they are better off trying to buy it from me at a higher cost than a cash buy than renting their entire life. They'll either get the house or get evicted, which would happen with a rental anyway. What many people don't understand is poor people have to live somewhere too.

I am curious if you're doing anything to help these folks other than not take "advantage" of them.

Simple answer is.....Glock 17

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GaryMyMan

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People like you are the reason why I never got into real estate.

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Or people who balk at paying triple market value @ 9%?

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The market sets the price. Not that you care about that kind of thing.

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Since then, he has made lots of repairs and made the house livable.

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Who paid for these repairs? If he paid for the materials and did all the labor, then what legally stops him from taking his materials with him? If he just did the labor, then you him for those repairs at market rate.

Him reversing his own work could well be within the law so long as he returns your materials.

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Or people who balk at paying triple market value @ 9%?

Regardless, I don't see how some keyboard warrior expressing contempt for slumlording would dissuade you from real estate all together. But if you were heading down the same path as OP's headache, maybe a "thank you" is in order.

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i'll preface this by saying i have no desire for low income investing due to the exact situation ILB is facing. A partner I just hired lives by the ILB method. Hes been shot at, had cars vandalized, etc...but he loves the ROI.

The reality is this is a personal loan. And it sounds like its a fixed rate. An investor of mine just got quoted 5% on an investment property so 9% on personal with a buyer not qualifying from traditional lending institutions seems fair IMO.

Most of my clients in lease-purchase situations clearly state all structural improvements must be approved by owner. All non structural improvements may be done without. Any improvement done is at lessee's expense.

I will end with this. If you start doing this type of investing in more Latin American communities, from my notes your risk drops exponentially and your ROI only drops a little and thats only due to fact they pay off loan in months, not years.

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My hispanic tenants are PERFECT.

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Not to get too far off topic, but this is why some of the rants about immigration turn me off.

Illegal immigration is wrong and should be prevented. But having spent 6 years in Houston taught me something.

While there are some hispanic immigrants (a very small number) who are criminals, the vast majority of them just want to work and take care of their families. They are very proud, yet, will do anything, any level of work, to handle their family responsibilities.

Compare that to some of our citizens, who will suck the government dry by getting benefits due to their sense of entitlement and with their laziness and lack of desire.