All Forum Posts by: Chris D.

@Sam T.

Thanks Sam. I appreciate your input and the fact that you took time to respond to my post. I live in the DC area and in addition to REIA's we have probably several dozen meetup groups so it is sometimes hard to determine which ones to focus on between Baltimore and DC. I really appreciate your input. I will let her know.

I have a friend who has been flipping houses in Moon township. I was telling her about the wonderful world of REIA and meetup groups and about BP. She has been doing this completely on her own. Would love advice from experienced flippers in the area on which groups would be most appropriate for her. She's experienced so a REIA that attracts newbie investors might not be the place for her. Thanks in advance for your response.

I've funded 2 loans in NC (Raleigh area). Had to search high and low for an attorney who would draft the docs the way that I have been advised them to be drafted here where I live - DC area (I use a commercial lending attorney). After MUCH effort I found an attorney in Charlotte by the name of Hal Berger of Berger & Kindberg Law, PA. As a lender, I wanted an Attorney who represents me and who would be my trustee. In my package, Hal prepared a DOT, a Promissory note, a Guaranty agreement, a limited liability company borrowing resolution, borrowers closing certificate and affidavit, collateral protection insurance notice an an affidavit and designation of commercial purpose. He reviewed the borrowers LLC operating docs and verified that the LLC is in good standing. He also reviewed the title work provided by the borrowers attorney (very important and something I wouldn't know how to do) and has followed up since settlement to check on the whereabouts of the title insurance policy for me. We were on a tight schedule and he was very responsive. He is more expensive than the other attorney but in my opinion well worth it.

Hi: I have been lending on flips in Virginia and have an investor I would like to work with who titles his properties in land trusts. The borrowers I work with title their properties in LLC's. Does anyone 1) Have any advice for me on how to lend to a borrower using a land trust? 2) Know of a competent attorney in Virginia who is familiar with land trusts or provides loan docs for lenders who lend to borrowers who title in land trusts? Would greatly appreciate any feedback as I would really like to work with this investor.

@Russell Brazil Thanks Russell. I agree with everything you wrote. I'm glad to know that a listing agent can ask for specifics about a buyers financial situation and qualifications. It is a good tip to give to my loan clients, to drill down on how the listing agent will deal with the buyers financial qualifications when a contract does come in. For me, the answer would weigh heavily in the choice that I made in the decision about which listing agent to hire. I appreciate your feedback.

@Russell Brazil. Hi Russell. I loved your podcast interview. I agree with your post. Years ago when we all "worked for the seller" as sub agents we were permitted to dig deep and ask some pretty intrusive questions about the buyers' financial qualifications. It seems like times have changed and that getting granular on the buyers financial qualifications is no longer acceptable on the part of a listing agent perhaps due to buyer agency. I don't list anymore...am just a lender trying to give my loan clients advice on how to interact with their listing agents so that their contracts don't fall out. 

@Wayne Brooks Hi Wayne. thanks for the tip about the desk underwriting report. I will pass that info. along to all of my borrowers. @Chris Mason identified something that I believe is true....happened on my very own house sale (I was not the listing agent). My top producing listing agent asked very few questions re: the buyer's qualifications and I found out there was a gift letter that was not disclosed at contract presentation...we got to settlement but I ended up babysitting the rest of the transaction which was something the lister should have been doing.

@Wayne Brooks Hi. Wayne. Thanks for your response. What is a DU? 

On the loan I am referring to today, the home had been significantly renovated and there were items the appraiser noted that had to be fixed prior to settlement. It seems like the appraiser is dragging his/her feet in coming back to approve the work. The seller is worried the deal with fall through. I don't know if the purchaser still wants to buy the house or not, but they have wasted almost 60 days of the sellers time. 

@Tim Youse Yes, but as Wayne says, the pre-approvals are bogus...lots of gray areas for things to fall apart. 

Hi BP realtors: I am doing some lending on flips in Baltimore County. I have a real estate license but do not actively list (no more retail for me)! Back in the prehistoric days (80's and 90's) when I was a listing agent, we were able to gather all manner of information regarding a buyers loan qualifications but times have changed. 

I am noticing that some of my flip clients beautiful renovations' get contracts very quickly....especially in the first time homebuyer price range under 200K. I am also noticing that some of these buyers loans' don't get approved and the deals fall through 45 days or more down the road due to the buyer not being qualified. Is there anything a listing agent can do to avoid this unfortunate surprise for their rehabber client? The rehabbers are paying high rates of interest and the clock has to start ticking all over again when a deal falls through. What kinds of questions and diligence can appropriately be done on the part of the listing agent with the selling agent/ buyers loan officer  during the negotiation stages while the buyer is so motivated to buy a property? Would appreciate any feedback!