Skip to content
×
PRO
Pro Members Get Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
$0
TODAY
$69.00/month when billed monthly.
$32.50/month when billed annually.
7 day free trial. Cancel anytime
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
Rehabbing & House Flipping
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated about 11 years ago,

Account Closed
  • Involved In Real Estate
  • Los Angeles, CA
4
Votes |
110
Posts

Potential First Flip Deal - Questions about HML disclosure and dual agency

Account Closed
  • Involved In Real Estate
  • Los Angeles, CA
Posted

Long story short - I was put in contact of the owner of a very, very dilapidated home (in Los Angeles). The home has been vacant for years and the person who'd lived in the house previously was a hoarder. The family is aware that the home needs a lot of work. I told the owner I can close fast and I'd like to buy the home.

A week later the family real estate agent called and said they'd be interested in selling "as is" for cash. They are wrapping up some internal legal issues and will be ready to sell within a month.

My current situation is that I have around 170k of my own cash to work with, but I'll need an HML for the rest. I have one lined up. Numbers wise, I'm estimating it'll be around 3-350k to acquire + another 100k for rehab. ARV in the 580-600k range.

My questions -

* Ideally I'd like to have the HML cover the home acquisition, and then use my cash cover the rehab and holding costs. Wondering at what point to tell the agent that I'll be using an HML? I figure that if I sent the HML all the home/area info asap and have them do their due diligence sooner than later, it'll be a smoother transaction?

* Also - The sellers family agent hinted at a dual agency situation. I have an agent in my family that I trust and am very comfortable with, and I'd hate to not use him. But I can also imagine that a dual agency situation might even get me a better deal?

Thoughts?

Thanks so much for your time and expertise!

Loading replies...