All Forum Posts by: Alan Mills

@Jake Alger, thanks very much for your thoughts. Please see my private message to you.

Hi REALTORS,

This is a question about a real estate transaction in Colorado:

While most of my conversations usually surround real estate investment strategies, this time I have a question in regard to purchasing our next primary residence.... a great time to do it with super low interest rates.

We are purchasing the property without a buyers agent. We knew that there were risks with this approach, and one concern has subsequently materialized, even if it is somewhat insignificant: The seller agreed to provide an interior decorating service as a part of the transaction. This service was advertised in the pamphlet for the property, and it was also discussed as a part of the transaction in early negotiations via email with the sellers agent. However, the service was ultimately not written up in the contract, and therefore the seller’s agent - who is now serving in the role of transaction broker, which we agreed to - has cited that because the service was not written up in the contract, the sellers are no longer liable to provide it.

No, this is not something that we would pursue any further legally, and the service is rather insignificant. But we do feel that a bait and switch has taken place, and that the selling agent, who I understand when she acts as a transaction broker should no longer be solely representing the sellers, omitted this detail in the contract, and we did not notice the omission at the time of signing. Argus situation does not strike us as a good faith effort. Really, it’s just a bummer. But I wonder if you might have some thoughts to share.

Thanks, and don’t forget to wash your hands ;-)

Alan

I'm also looking to secure a cash out refi on a duplex in Colorado. 70 or 75% LTV is good enough. Less than 6 months on title a bonus, but not compulsory. Most lenders will have talk to you recently are in a holding pattern until at least next week.

Be careful to understand whether you will be able to get 75% LTV based on ARV or based on purchase price. You might have to wait for 6 months on title before getting 75% ARV. The delayed financing options that have been presented to me only included 70-75% of the purchase price, which excluded the additional costs for rehab, and didn't include the new value after rehab.

I have also been trying to find a lender to do this in Colorado. 

@Abdul Mondol

BP Podcast 301 hosted Alex Felice and there (see starting at about the 20:00 mark) is some terrific advice that I'll look into moving forward on my future deals. Do check it out. But being that I bought using cash and am funding rehab through cash, I didn't get the rehab costs on the HUD at the time of purchase, as suggested by Alex, which is estimated at about $25k. So I don't think I'm going to be able to use delayed financing to get my capital out of both the purchase price and rehab costs this time. Being that my heloc (where I git the cash fir purchase and rehab) is still hanging in at around 4%, my safety net is to just get the duplex rented after rehab is done (roughly 3 months after purchase) and float it to the 6-month mark and then cash out refinance based on the ARV LTV, which I am confident will get me most, if not all, costs back. If COVID-19 ends up depressing home prices a bit, I'm okay with leaving a little capital in this one because it's a great deal. For now, I'll keep after my quest of trying to find a cash out refi lender (someone who can do delayed financing?) who's is licensed in Colorado and can get me as much of my purchase price and rehab costs back under 6-months, but I'm guessing I'm stuck waiting for 6 months from purchase date.

@Brian Dickerson Please see my private message

@Bill F.

See my private message for more information. But for others following along who are also interested in learning, I am looking to discuss the bigger overall picture on this matter. First off, it was unexpected. If you’re just starting out, and don’t have a lot of capital like myself, I am essentially looking at a six month waiting period between projects, which is two deals per year. It just seems like a very slow way to get the train moving forward. There is a lot of other useful information in this string, so I have a lot more legwork to do to find out about alternative money options. I’ve read about all of them along before I put up this post, but it is still a bit daunting to gain enough confidence to try other purchasing and financing options. I’m sure I will get there sooner or later.

@Ruben Izgelov

Please see my private message

@Steve Vaughan

Woa. Thanks for chiming in with all of your experience on these issues. This is a lot for me to unpack and I just. Really appreciate it!