All Forum Posts by: Bob Chapin

From what I understand the balloon is acceptable if I fall under the 1 in 12 rule (which I do).  Only one seller financed property in 12 months.  I have not financed any others.

My only issue is the rule about "construction"

I have a buyer that wants to purchase one of my flips, they want the place bad.  However, they are trying to sell their current home and once they do they wil have the cash (they are downsizing).  They asked if I would finance (offering full price) and I said I would with like a 6 month balloon.  But, now I see this Dodd-Frank stuff and I am not sure I would qualify on the one per 12 month exception. 

Does this rule (below) include renovations of existing structures (flip)?  I hired a contractor who did the work and pulled the permits.  I pretty much only flip so it is my ordinary course of business.

Rule: "The seller did not construct, or act as a contractor in the construction of, the residence in the ordinary course of the person’s business."

Thanks,

Bob

@Brian Garrett No

Hello,

In Florida (Palm Beach County).  As far as remodeling goes of a condominium.  If a condo building is 4 stories can a "Residential" Contractor do an interior (non-structural) remodel?  Or does the 4 stories mandate a "General" contractor.  Or does the stories requirement only apply for new construction?

I ask because I want to be my own GC on flips of some condos and want to get my license.  I am hoping to get a license through reciprocity.  I have loads of experience.  Connecticut did not require a license to GC properties you own.  You obviously had to get licensed electricians and plumbers.  I can get letters from multiple building inspectors and  different trades.  Hopefully I can convince the board, but I wanted to go for the lowest level of experience (Residential).  But I want to make sure I could accomplish my goals (renovate a condo).

Thanks,

Bob

I understand that new amounts going forward will need to be paid. Just wanting to make sure there is no weird rule that can allow them to come back after me. I see the court cases that enforce wiping out the HOA liens.

Hello,

From the information I have read from the court cases from a few years ago a Tax Deed sale in Florida terminates the liens of an HOA. But does that terminate the actual debt? Does the HOA have the right to establish a new lien against the property for those old debts or fight (successfully) a quiet title action?

Thanks,

Bob

Oh agreed!  But if the mortgage company has "lost" the property you could rent it indefinitely as long as you paid taxes and condo fees. 

I came across a property that has been foreclosed on twice by the HOA. The bank filed a LP years ago, but no further action regarding a foreclosure has ever followed. The intermediate owner held the deed for about 4 years, it appears he/she was renting the property. The taxes are paid in full, but they didn't pay the condo fees. And recently it got foreclosed on again by the HOA. And now the deed is transferred to another third party. The property is a very nice property worth 300-400k, the mortgage was in the 300's. So there is clearly a reason for the bank to foreclose. I guess the second title holder could have contacted the bank and been paying the mortgage and taxes, but seems unlikely to me. So, i guess my questions is do banks ever misplace properties in the shuffle between assignments and loan servicers?

@Andres Calderon Thank you!

Thank you