3108 Aster Street, Lake Charles LA
SOLD!
Lake Charles investment property and multi-unit complex properties are unique real estate opportunities. Sellers can expect that a multi-unit complex will will average longer days on the market than a regular residential home for sale in Lake Charles, LA. It takes a specific buyer that wants to invest in a multi-unit complex to come along.
Some investors will be in a position to be able to provide a buyer with "owner financing" on Lake Charles properties for sale. Other savvy real estate investors may take advantage of a line a credit with a local bank. Depending on the circumstances a contract can be negotiated with several options.
3108 Aster Street was SOLD with owner financing. What sounds like an easy way of financing for a buyer, may require alot of work on the part of the seller to make it happen. In this instance the purchase had many moving gears that needed to be "tweaked" in order for the transaction to occur.
- The Seller still had a mortgage on the property so a Vendor's Lien could not be prepared to deliver title and ownership to the new Buyer. Instead a Bond for Deed was drawn up by an Attorney. The bank had to grant permission allowing the Buyer to make the monthly mortgage payments on the existing account. This is not the norm for real estate transactions
- Once the financial terms were agreed on and included in the Bond for Deed, there was insurance to be addressed. The Seller must maintain the insurance with an existing mortgage but the buyer needed to be added to the policy.
- Then the terms of who is responsible for insurance and taxes and how that will be addressed when the Seller still must maintain both in his name!
Did I also mention the coin-operated laundry lease that had to be coordinated and transferred? That was another moving part to the transaction.
When inspections are conducted the inspector will need access to every unit and it will be a lengthy day depending on the number of units in the complex! Notices have to be posted ahead of time notifiying tenants of the inspection.
Whenever tenants are involved with rental property, there are other issues to be handled with the release of tenant deposits and leases that must be conveyed to the new owner. The deposit belongs to the tenant so only the tenant can grant permission to transfer their deposit. Even with an advance notice of closing date, obtaining multiple tenant signatures can take time, and requires effort on the part of the property management company and/or Realtor to accomplish.
The buyer must also notify the Lake Charles Housing Authority if any current tenants are Section 8 and comply with Housing Authority requirements of ownership.
Real Estate Deals are out there in Lake Charles and ready to be found. If all parties are willing, anything is possible, even a Bond for Deed transfer of ownership to a Buyer where the Seller has an existing mortgage!
Whenever a Buyer or Seller agree to do something that is unusual in a transaction or veers from the "normal" Louisiana Real Estate contract and conventional financing, it is wise to have an Attorney review and prepare all the documents. Both Buyer and Seller need to understand all the terms before meeting at the closing table.
By the time we closed 3108 Aster, all of us representing the Seller gave a big shout of HOORAY and toasted!
Comments(4)