All Forum Posts by: Chris Conde

Hi,

I have a possible deal on a house presented to me that has back taxes owed. It's a wholesale deal and I'm not sure how this would be handled. Here's a break down of what I know so far.

Purchase Price 60k

Arv 85K

Estimated repairs 10k

There is 6k in delinquent taxes due.

My question is, who is responsible to pay this tax bill? The current Owner, Wholesaler, or the Buyer (me). Is this negotiable?

Any and all advice is appreciated!

Chris

@RickPozos thanks for the response 

@Tom S. I appreciate the response. I'm thinking the same thing. Just a regular mortgage with a local bank.

Chris

@Joe Villeneuve Thanks for your response.

Chris

Hi all,

So I used short term business credit (Business Credit Card) to purchase a Townhouse. The asset is in good condition and cash flowing nicely. The issue I have is that my intro rates on my card are expiring and I would like to have a longer term loan. My original goal was to re-finance it into a traditional fixed rate mortgage after a year. A major challenge I have is that the townhouse is not worth over 50K. It seems 50-75K is the minimum that a bank will loan on. I wasn't aware of this prior to the purchase. 

So now I'm in a pickle. I don't want to hold the balance on a credit card with a high percentage rate. My question to the group is this: What creative ways can I use to have a more stable longer term loan on this asset? Here's some of my options i thought of listed out:

1. Credit Card Shuffle. Just keep transferring balances to cards with intro rates. This is high maintenance to me and even though the intro rate is low there is still a transfer fee. My risk is that card companies may stop with intro rates at anytime leaving me holding the cost at regular credit card rates.

2. Find a private lender to just write a note for 35K for a fixed rate and term and be done with it. I have several other units and I have over 4 years experience in REI. I have an 800 credit score and high paying day job. I think I am an ideal and safe candidate for someone to loan too.

3. Find a traditional bank that will loan on an asset under 50K. I don't like this idea because I then will have a mortgage against my name for such a low amount. I plan on buying a 4 unit soon and want to use my mortgage allowance on larger deals.

4. Use a Business Line of Credit. The challenge here is to find a lender or bank that can allow me to do this. Any recommendations?

5. Use non bank entities. I'm thinking of capital groups that are out there that do asset based lending. I'm intrigued by this idea. From what I have seen, these groups will not loan on anything under 50K either. So I'm back to being in a pickle again. Perhaps I'm looking at the wrong companies?

Any other ideas or referrals that the group here can make? Let me know your thoughts!

Thanks,

Chris

Bump any other suggestions?

I bought my Duplex in Parma in Oct last year. It was rent ready right after Christmas due to rehab. I had it fully occupied by March. The first unit went faster (occupied in Feb 1) and the other unit was filled March 1st.

Awesome thanks so much! Will do!

Hi!

I'm interested in doing a BRRRR of a single family in the Cleveland / Euclid area. I'm putting together my team and I'm looking for a local bank that will help me cash out re-finance. This house will be purchased as an LLC in hard cash and then the goal is to re-fi to pay off the short term loan and hopefully have some extra money because of the difference in ARV compared to what I put into it. Are there any local banks that would re-fi on an LLC owned house that any members have used and recommed? Will these terms be commercial terms or will I have the ability to do a 30 year amoratization? How about interest rates with someone with excellent credit be like? How about the typical LTV? Lot's of questions, i know!

Becky and Chris

Yup we started in our 40's. Only have one duplex but have to start somewhere!