All Forum Posts by: Sean Dezoysa

Yes makes sense, thanks. Is there any wiggle room at all or will banks and other note investors pass on a note where the collateral appraises for 100k, has a 75k 1st and 25k 2nd on it (I only want to sell the 1st, the 2nd is a keeper)?

To minimize HML costs I would like to sell the 1st as soon as possible to pay off the HML loan. But I understand unseasoned notes also sell for less?

Thanks @Nathan Grabau! There isn't a 2nd appraisal since it's an owner finance sale; no bank lending or appraisal needed. Wow, 85% discount seems incredibly steep, I thought I'd take about a 15-20% haircut! But I will definitely check into this now

I'm targeting a property with about 20k rehab but will sell as is to a homestead buyer. I want to use an HML to fund (most of) the acquisition. When I resell the house on terms a 1st will be created and sold cover a pay off the HML loan (after discounting) in 1-2 months. A small 2nd will stay with me. The end buyer will be responsible for the rehab.

Hard money is usually for rehabs. I know other investors do the strategy above but I need to clarify a few things:

1. Are most HMLs comfortable having their funds be used as gap funds during a resale period?
2. If the rehab responsibility will fall on the end buyer will HMLs accept this and not require rehab funds (from me) be escrowed and drawn against?

Thank you

Recently I was referred to an escrow officer who does transactions in multiple states and is comfortable with creative deal structures (even beyond lease options and wraps).

She's not able to work everywhere though so I would like to expand my rolodex. Do you guys know other escrow officers who fit this profile?

Thanks for any referrals!

1. Say a check or bank wire bounces. Contract itself doesn't state when EMD must be deposited with title. Problem or not? If not, is there any time limit at all or can I deposit the day before closing?

2. Sometimes I would like to take title in a new entity, LLC or trust. If this new entity is listed as the buyer, is there any requirement that the buyer named on the PSA pays EMD and other fees? Because ideally, my "main LLC" does that. Else I'll have to open bank accounts for the holding entity

I read somewhere that one method to find deals is to skip trace and call properties under contract by other wholesalers, that did not close 30 days later. A list of "failed contracts"

If anyone has done this, is this "list" motivated? On one hand they tried to sell. On the other no buyer seemed to want it on the first attempt by the wholesaler.

Hi Bob, that is what I meant, thanks. So there's no way to do a search, or have an attorney do a search for such information?

How much of a threat is this if the LLC is 2-4 weeks old?

Is selling a holding LLC to tranfer title to a SFH a difficult, complex transaction? I didn't think it would be that difficult but this thread seems to indicate it is, and I would like clarity into why exactly: https://www.biggerpockets.com/...

I'm getting some sellers interested in payment terms from my realtor partners. After the down payment, agent commission and (all) other entry costs, I'm seeing cash on cash returns of around 20-40% against a wrap exit, to each partner on a 50/50 split.

Is this in the ballpark of what funding partners on a wrap would expect? Or do I need to be north of 50% to justify their risk?

Only about 1 in 10-15 of the homeseller leads I'm working pick up the phone. My leads come from wholesalers in my areas (I ask them for their leads who they declined to do business with in an attempt to work some creative finance deals with the same leads).

I have asked my VA to switch phone numbers in case hers is marked as spam. Also to buy a local number. And try sending SMS as well. We may also try calling multiple times per day though that can backfire if overdone.

Usually when we tell the partner wholesaler of the issue, they'll say to send an SMS or "I'll try calling them" but that's the last we hear.

Just curious if others faced this issue and how you solved it.