All Forum Posts by: Dustin Long

Hello!

I'm located in Rochester, NY and am seeking $185K to be backed with $350K+ in RE and commercial laundromat equipment.

The money will be used to pay off the current first positions on the properties, and finish the buildout on the laundromat.

I already bring in $4,030 a month from the RE and if I only do HALF the average loads per machine per day I'll bring in an additional ~$4,000 a month from the laundromat!

I started with $8K 3.5 years ago, making $200/week, I now have $1.1M in RE, bring in $14K a month from it, with over $300K in equity.

You'll be backing a winner, and I only plan to grow bigger and bigger!

I have no collections or public records on my credit report, but haven't been given any credit to build it!

1. 20% monthly interest only payments for 36 months, with $185,000 payable in a balloon at 36 months.

Was originally a 1 year note, but has gone over. Can modify upon transfer. Principals only, no brokers

I contracted with a private lender who also has is licensed mortgage broker. He is refusing to live up to his end and provide the financing, which has made my payoff for the refinance to jump from $118,000 to over $132,000. He told me I must have "mental issues" for "allowing" the foreclosure he was going to pay off to go on "too long" after 2 months. He was going to provide $130,000, secured against $266,000 (54.4% LTV) at 10%, and my current default rate is 16%. I was moving 2nd's of the two properties to three others that I own, making 5 properties and 4 different sets of attorneys involved. He's also accepted a $1,300 deposit (1 point prepaid) which he refuses to return to me.

At this point his $130,000 won't even satisify the payoff, and I've incurred $14,000 in additional interest and attorney fees. Is there a way I can compel him to perform on the contract or get damages from him? Any help would be appreciated.

Hello, and thank you for considering this project.

Here is a detailed description of what I'm looking for:

$145,000 requested to pay off current lender and close for 1058-60 & 1062-64 Clinton Ave S. and I'm offering 23 Raymond St. as well as additional collateral to reach a LTV of 54.4%. against a total value of $266,593. 

I'm profitable and your equity is protected, either I succeed and you make a great percentage or I fail and you almost double your money in a short period of time. There is a 1st position currently on 23 Raymond, but only for $5,000. That could stay and you could take a 2nd, being that the LTV and in the event of forclosure would only cost $5,000 to satisify (making the total investment only 56.3% LTV if and only if a default occurred), or I can pay it off with your loan and leave you as a first and only position. The only reason I'd ask to leave it as the other lender has an additional $150K with me and has been satisfactorily paid for 18 months, and can give him a certain level of comfort being on the one more property.

In addition to show my current strength as a potential mortgagee, inclusive of the current properties, my total holdings are $1.04M with $270K in equity and I profit $5,500/month. Thank you again for taking the time to look this over, I hope we can make a deal and put something together soon.

Here's what I have for collateral:

1058-60 Clinton Ave S.
Rochester, NY 14620

Purchased 11/14/13 for $60,000

zillow.com - $82,204
trulia.com - $82,000
realtor.com - $78,268

Average = $80,824

1060-62 Clinton Ave S.
Rochester, NY 14620

Purchased 11/14/13 for $100,000

zillow.com - $122,606
trulia.com - $106,000
realtor.com - $110,535

Average = $113,047

23 Raymond St. Rochester, NY 14620 (2 blocks from other 2)

Purchased 01/22/14 for $44,000

zillow.com - $73,583
trulia.com - $69,000
realtor.com - $75,583 

Average: $72,722

Average for all 3 properties:

total value of $266,593

Since I purchased the homes I've done the following work:
1058
new bathtub/enclosure: $1000 refinished all hardwoods in 3 rooms $750 1 new high efficiency window $200
redid kitchen floor $350 new wall and trim paint throughout $300 new refrigerator $500 new stove $400 new faucets $150

1060

New Bathroom tiles and shower enclosure: $1550 (done by a professional plumber) new kitchen floor and dining room floor to sub floor $1400 new refrigerator $500 new wall and trim paint throughout $300 roof repair around plumbing exhaust pipe $800

1062

no work needed

1064

new closet doors $100 bathroom renovation to accommodate a wheelchair $800 new wall and trim paint throughout $300

23

New front porch $800

new shower faucet $150

new kitchen faucet $300

 new washer and drier $900

The monthly income for the properties are as follows:

1058 - $675
1060 - $800
1062 - $750
1064 - $800
23 - $1005
parking lot rented to Restaurant next - $175

Total rents received: $4,205

Taxes: 1058-60 = $984.52/year county $2657.60/year city total = $3,642.12 or $303.51/month

1062-64 = 1064.97/year county 2757.58/year city total = $3,822.55 or $318.55

23 Raymond

$750.03/year county

$1,820.91/year city

Total = $2,570.94/year or $214.24/month

Insurance =$360/year or $30/month

TOTAL TAX = $836.30/month
Insurance for all houses $1,060/year or $88.33/month

Mortgage (upon your approval): $145,000 interest only @10% = $1,272.48 monthly

INCOME..........................................................$4,205.00 - EXPENSES.....................................................$2,198.78 = $2,006.22 profit monthly


I also have ALL the redated abstracts, title work, surveys and insurance ready to go, as a lender had committed to me but was unable to come up with the funds, so I can close ASAP! If you have any other questions or need any further information feel free to contact me!

Also, what I was told per the notary was ;

There is a difference between a “sworn to clause” and a “notary acknowledgement”. The document does not have a Notary Acknowledgement and cannot be recorded at the county clerk’s office.

I'm sorry if I was a little confusing. I owed him 30k at the time I was informed to pay the 4k on his behalf. To legally bypass having to pay the suit on his behalf, since the only instrument "forcing my hand" if you will was the nortgage note. It was replaced with a personal loan that I've put up another dozen or so properties against. I've continued to pay him since August when I received the release, which if it was never signed I would not have done. I would have sent my ~$300 payment to the attorney of the party that sued my financier. He owns a business that isn't doing so well and the $300 means a lot to him right now, and we both benefit from it.

I had received notice that a financier had been sued 4 years prior to me even meeting him and that I was going to have to pay the lawsuit on his behalf. It was only around $4,000, and I still owed him ~$30,000. The only way that I was tied into this was because of the filing with the county that he was holding a 2nd position, and I owed him money.

After speaking with 2nd position lender we agreed that he would release me from that 2nd mortgage, which would allow me to keep paying him and not the attorney that contacted me (which would spare him 14 months of receiving nothing from me and overall allow him to collect the full amount of his mortgage, not $4,000 less). This was also a benefit to me as I could then get new second position financing on the property and use the proceeds to further grow my business.

I did find more financing and provided my attorney's office and the lender a copy of the release of mortgage 4 days before closing and there were no issues,... Until after all funds were disbursed and the county didn't accept the notary's signature.

The original 2nd position lender is now about 45 days out from that closing, and refusing to sign a new document with no changes to it.

While I'm aware he's taking a risk by giving the release, he agreed to it and signed it.

What can I do? What should I do? I've looked for the notary but she's not on a 'list' where I can contact her, and she's unlisted. I did find her on Facebook but the message has been unanswered that I sent her 30+ days ago.

This whole ordeal is holding up a new acquisition because the lender for the new property has no security with his last financing due to the original 2nd's refusal to cooperate, and is costing me more time and money. I have several thousand tied up with deposits towards the new property and is leaving me next to broke, while when it goes through I'll be getting $20,000 cash out and can tackle my next 3 deals.

Thanks everyone! I appreciate your time to respond. I never had a chance to meet the tenants as I bought the house empty a few days before they moved in, and I already had a signed lease with "her" on it but "he" never was (not 100% sure why) but he's about 6'5" 260 so he likes to use his size to intimidate. I'm sending him a letter today indicating he has NO right to demand anything of me and for his remaining 3 months he'll be subject to whomever I name my property manager. I'm going to make it my repair guy that does most of everything there anyway, so it just saves me the call being middle man. I have 10 other units and they're all great because I try to be respectful, and they've never given me any problems at all. I admit I let him go too far, but I'll learn from my mistakes. I had to respond to a power situation (and he refused me entry for about 48 hours) where he had hooked the refrigerator to a power cord, and the only thing wrong with the electric was that the breaker had popped. This was after he cussed me up and down that I didn't bring a certified electrician with me.

I have a tenant complains about EVERYTHING and even undoes some of the repairs I make. He's told me he's reported me and that I'm a slum lord. I have over $1,100 in receipts since January (I even bought shrink wrap window treatments to help him save heat, and his response to that was "When are you going to install them? So i begrudgingly did). I sent my repair man over today with a brand new window to put in and he refused to let him in and only will deal with me. I'm out of town until Monday and can't personally attend to the matter, but he refuses to deal with anyone but me. I have 2 other houses within about 100 yards and they're both great tenants. What can I do if he refuses to let anyone into the house to do repairs but me? He also takes off work when he demands me to come over and then tries to make me feel bad because of it. I'm in upstate NY and very frustrated...

Hi!

I've posted on this before but wasn't very detailed so I will be now.

The financing would be for a multi-use commercial property (92% occupied) with 4 store fronts, 6 studios, a 2 br. unit, and a loft/penthouse with roof access in a very hot and artistic community in Rochester, NY.

I have a 2nd position already taken care of for $425,000 (financed for 15 years, amortized for 30), and can give you first position for $175,000.

I had financing lined up and the hard money lender couldn't come up with the funds.

I'd like to see something around 10% and would like a term of 24-36 months.

I currently have 6 other properties (2 tripple unit houses, and 4 single family houses) and this new acquisition will double our monthly Net and Gross.

I know I'm new to biggerpockets.com but anyone familiar with me knows I'm resilient and very driven, and I'd welcome any questions you may have either about the deal or about me! I plan to invest for the next 30+ years so it's never too early to make a few good connections!