All Forum Posts by: Allen Maris

I work in the film industry.

Well the 2 ways I see to get it to qualify are lowering the payment (more down payment, lower interest (paying points), lower purchase or lower expenses or all the above) or raise the income. 

Raising your down payment from 3.5 to 4 will not do much to help the problem unless its in combination with other reductions. 

What vacancy rate are they using? That's about the only way to raise the income before you own it. If you can get your net income higher, that will help. 

I'm assuming they're charging PMI, which you don't show above.

You can also go back to the seller and offer lower since it doesn't qualify. You should have a loan contingency you can get out of the contract with. If it's that far down the line that you're up against that, you're going to blow past your close of escrow date anyway and will need an extension. 

I just closed a sale on Friday that was FHA pre-approved solid buyer from the beginning and they still missed closing by a week because of late document requests and such. And it was a 45 day escrow period.

People don't fully represent what's going on, even when they do things completely legal. I'm not really sure @Account Closed did anything wrong unless he specifically told the buyer HE was going to be buying the property and misrepresented what his intent was. Maybe I missed that in the discussion.

I'm selling a property right now, this is a full MLS deal too, a buyer submitted a contract and then sat on the property for 15 days until their contingency period was about to come up and then canceled. The agent said it was because of a job transfer, but they sure didn't act like someone that really was serious about buying. They didn't do one inspection or even go back to see the house a second time. They tied up the property while they waited to see if they were getting the new job. It cost me time and money, but technically is legal under real estate and CAR rules. If it's ethical, well, that's a different line that was crossed, IMO. They just said "Sorry" and walked away with their full deposit back.

Hi Thad, 

Why located in SBC? Mine is in LA but I've only seen him in person about twice over the last 5 or 6 years.

Allen

Hi Drew,

Welcome to BP. Quite a few of my very good friends are attorneys so no ill feelings about your profession from this side.

I can tell you as someone that has the attorney friends, non of them in real estate, unfortunately, and have dealt with attorneys quite a lot, there is a reason most people view them as line item expenses and that is the billing factor. I've yet to meet an attorney that collaborates like any of the other disciplines without charging massively for that. I work with a CPA that charges me to do my return only even though I ask him questions throughout the year and never receive a bill. It's treated more as client relationship upkeep than billing. I do the same in my job.

Happy to have you aboard, don't listen to Ken, your knowledge and insight is a huge value to the investors here. 

Sounds like you are on an interesting investing path. I know very little about notes, but something I've just started reading up about since the market in CA isn't providing any cash flow these days.

@Stephanie Medellin, thank you for the comment. 

@Jo-Ann Lapin - For sure I will use an attorney, but haven't done many contracts for work, I like to start the process and give them something to review instead of just letting them write it up. I've found many seem to always have to re-write the book when they're told to draw something up.

@Jay Hinrichs - Thanks for the note. No balloon on this one, fully amortized.

@Roman M. Because as I've learned with contract law, if you let the other party bring you an agreement, it's usually one sided with all kinds of added provisions. If I can bring docs to the table, at least I'm starting with something I'm happy with to negotiate from there. 

@Jo-Ann Lapin , it'll be owner occupied. 

I should also add in general that this is the one and only loan I will do this year. 

I'm moving forward on doing my first carry back for a buyer. I was wondering if anyone knows a source for getting a copy of an existing note that will at least get me started with a local attorney. There's no need to pay an attorney to draft something from scratch when just tailoring it is needed. 

Thanks!