All Forum Posts by: Aaron Brown

I appreciate the feedback! I should've been more clear..I'm not referring to an HML; I'm referring to instances when you have an individual that is loaning the money. Let's say it's a family member or an investor loaning from their self directed ira - I'm curious what others are using as POF to submit offers on a house in those scenarios.

Hey BP family, 

I would love to hear some feedback on POF for private money deals and realtor commissions on off market deals you found and negotiated yourself.

What do you typically use for proof of funds to submit an offer if you are borrowing from an investor? 

Also, what are your thoughts on realtor commissions for the listing agent on deals you found yourself? Do you still pay full commission? Or do you expect a discount? 

All feedback is welcomed and appreciated! 

@Charles Carillo @Joe Splitrock @Bill B. Thanks for providing this feedback. This is a lesson learned. We will be closing on Monday and didn’t do an inspection. Until I got your responses, we were planning on getting the home warranty as a form of insurance in the event of any system/appliance issues. Fortunately, we were able to acquire the property at a very strong equity position and have cushion for any unforeseen expenses, but moving forward, I will definitely have utilities turned on and get an inspection. Thanks again for your insights! 

@john Warren @Scott Wolf Thank you for taking the time to offer your insights. This is a partnership agreement with a very close friend and his father that’s fully funding the deal - while I want to be thorough in providing the proper protection, I was also hoping to cut some corners and trim cost on legal fees given the nature of the relationship. But I think you’re right that it’s a relatively small initial investment to have this original document drafted by an attorney, and can then slightly alter and recycle it multiple times over. Again, I greatly appreciate your input! 

Does anyone know where I can get a template for a joint venture agreement? Also, looking for language to put in a mortgage for a private money deal that covers the acquisition price and provides an additional $20,000 as a draw for improvements. I want to write mortgage amount based on the acquisition price plus the rehab costs, but just trying to determine the best way to articulate in the document. Any help/thoughts would be greatly appreciated…

In instances where you purchased from a corporation as-is and they don’t have utilities in their name to be tested in an inspection, is it common to purchase a home warranty for protection? Any thoughts? 

@Stephanie Caruthers My apologies for the delayed response. I did find a capital partner for this deal. However, I have others in the pipeline that I need private money for as well. If you think there could be a good fit, I’m open to furthering the dialogue. 

@Mike Deemer I sent you a message. I’m happy to share more details and discuss further.  

ARV:$260,000; Acquisition cost:$170,000; Estimated repairs: $12,000-$15,000

Great flip opportunity in Franklin Twp (46203). The home is in move-in ready condition; just needs light cosmetic work. 

Looking for capital partner. Open to discussing terms. 

The back taxes are $11k