All Forum Posts by: AJ Biz

Hi Bryan
Purchase 380K
gross rents 4300 /month
Utilities landlord pays: 200/month
Maint: 200/month
Prop Tax: 380/month
Insurance: 90/month
Pest control: 50/month

This will take me out of the running for a little bit, but i am ok as i have not seen such numbers for this part of the country, at this scale of investment. If I am able to refi and cash out, the ROI will be even better...which may put me back in the running.

If I am buying a property through escrow (in CA), and get title insurance, is there anything i need to worry about from a clean title perspective?

Also, what do i look for in the prelim title report?

I would think look at the summary page which outlines that the title will be provided with the blah blah exceptions:
1. property taxes
2. supplemental taxes
3. any other city/county bond related payments
4. any easements for walkways/electricity lines etc to a public utilitity company

I see a lot of verbiage in those reports which seems boiler plate, like exceptions, deductibles, etc.

Whats a smart way to ensure you are getting good title? Or if you are buying title insurance you are ok?

Usually the bank ownes 75-80% of the asset, and you have to buy them title policy (as a buyer). So i was guessing they would ensure title is clean. But if I am buying all cash, what should i look for?

In the process of buying an REO 4 plex. Owner is still in one of the units. My conventional loan cannot fund because the owner (holdover tenant now) or foreclosing bank will not cooperate in getting a wall heater installed in that fourth unit.

My options - close it all cash. Or hard money loan.

Once we close with either options, I could do a refi.

Issues: If I go all cash, can i get a cash out refi (pulling out 75% of equity)
Or, if i go HML, and for whatever reason i cannot refi, i would be loosing money on the investment (carrying cost too high) and then at the end of 6-12 months, pay the HML lender out (all cash).

I would go with all cash, if cash out refi on conventional non owner occupied 4 unit property was "doable" in this day and age.

Thoughts?

Thanks Jon. 3 of the 4 tenants are cooperative - and i prefer them to be in the unit. Saves me the hassle of refinishing the place, marketing and renting it out.
Nothing wrong with that point of view right? Those 3 rents itself will carry the unit, and provide a little bit of cash flow (after all expenses).

The 4th unit is where the previous owner is. I would have to evict them. its in a non-rent controlled part, so I am thinking its a matter of time plus worse case 5K in eviction costs? Could I be off the mark?

Interesting you mention hard money loan. That is what I was thinking...but wasnt sure if that bordered on predatory lending. Thoughts? Was quoted 8-15% interest with 3% origination fees. I got stellar credit, great income that i can document, property mgmt experience, and 25-40% down.

Thanks Andy. Already tries cash for keys but the refuse to engage. Pbm is they either do not understand that they r owners no more and or being misled by some folks who prey on foreclosure victims.
Only thing we heard back from them was thru someone claiming to be an investor who asked the listing agent to back off and stop bothering the owners.
We ve upped the cash for keys close to 5 digits and still no feedback. That leads me to blv they e misinformed or being misled...

We are in escrow for a 4 plex that is REO. My loan is moving along fine through BoA, and is approved and ready to close except for one condition.
* 1 unit needs a fixed heating source installed.

The holdover tenant (previous owner) has the keys to that unit that they were using before. They've now all but moved out, and show up once every few days (per tenants in the other 3 units)
They are NOT cooperating with the listing/sellers agent in letting them install the heater (condition to close and fund the loan).

The selling bank (US Bank) is not wanting to make any calls or get involved. Listing/buyers agent (same company) sent them a form to sign which would give the holdover tenant notice of impending repairs. But they refuse to sign that too.

BoA is refusing to even accept money in a "repair" escrow from us. I am willing to pay for the install. Its hardly any money given the potential gains.

How do I close this deal?