All Forum Posts by: Brennan Crick

@Mario Cuartas

In my experience, you get your rehab funds in escrow based on your SOW (scope of work) and that's attached to your purchase loan along with your 20% or so down payment. Depending on the lender they will want to review and approve your SOW to achieve the target ARV. When you draw the funds you'll pay a draw fee. So you'll have to be smart on when you make your draw. So work with your GC with that.

@Michael Evans

hello BP, we're in a tricky situation and in need of some guidance from the community. So straight to the question!

Is it legal to put a contract on each structure in a multi-family property that only has one deed? And how can one get out of a contract?

and I explain..

The property is a deeded "triplex" thats consists of a duplex and a single family home on ONE deed. A buyer has made a contract for each structure (one for the duplex, and one for the single family home) In Norfolk, you can't split the properties on a deed. So does that make the contracts void, even though it binds the property until the closing date? Any insight will be greatly appreciated.

and please note, I don't own this property. We do intend to purchase this property if this contract becomes void. I do have an agreement with the seller.

Thanks!

I'm the partner in this deal!! To add to this and to make things simpler. We are simply trying to see about setting up an LLC for the property in the simple from of going through the state (va) online and just paying the online fee to register our business instead of going through a Lawyer to draw up a the articles of organizations...and paying more. With that said we use the joint venture agreement as a type of Articles of organization that structure of business. We just want to see what others did in this situation here in our lovely BP community.

Is the summit sold out?

@Dennis M. Oh I’m going to get funding! Before April. Some way some how. It’s going to happen. As for the deal, the seller increases the sale amount for each year I don’t buy. So i still remain in control and I still collect that cash flow. But in all in all, It is seems all the info I’ve gotten so far is regarding my credit. I’ve read of deals that don’t require the credit score. They just focus on the deal. BUT if that’s the case I can work on my credit and be ready in a couple of months. That’s why I’m asking these questions so I can prepare myself for this transition.

@Dennis M. The deal is almost like a owner fianace or even a subject to, but I don’t pay the seller, the renter does, and can get cash flow with no money down. Now I know the banks are not the way to go on this, but I’m sure there’s a broker out there that will see the beauty of this deal. Or even a HML can see the money in it. This property generates $2,600 in rents and tenants are already in place. So I wouldn’t think my credit score would matter. Maybe would it be wise just to focus on buying the property and worry about the refi later.

@Tarik Turner So should I do a short term loan and then refi into a long term loan. Or see if I can jump straight into a long term loan for the ARV, pay the seller his asking price, and pocket the rest?

@Ned Carey indeed, it’s already gone by fast. It feels like I JUST got the contract signed last week! That’s why I’m trying to financially prepare myself to buy this property.

@Ernest Grindle thank you for your response! The price is fair. Not what I’ve liked it to be, but it’s workable. We negotiated 135,000 for all 3 unites. Currently estimated value is 191,000 and arv will be around 220k or so. One unit rents for 900 and the other 3 rents for 850. I could take a profit to pay down debt to get my ratio down.

@Ned Carey. Thanks for your reply! Well my goal is to prepare myself for the purchase. I’m planing on getting the down payment for the initial purchase price with the rents from the property and other capital. I just need to know who to go to and when should I start the process because I have a year. I honestly don’t know the timeline in which to refi once I have purchased the property though. As for the hard money lender I just think he’s using that process to his advantage because it’s my first deal.