All Forum Posts by: Christopher Phillips

@Trace LeDogge

I see your point, but it doesn't matter what the seller's skills are when buying FSBO.

When buying direct from the seller and without representation, the buyer has to know what they are doing.

@Trace LeDogge

The disclosure isn't about whether the person is a professional or not. It's about the relationship. In this case, it was already known that the person was the seller. Since the agent didn't disclose, there is no suggestion that the agent was representing the buyer.

The disclosure is an issue when an agent is representing someone and convinces them to take a lower price while not disclosing they represent the seller in some way. That wouldn't fit in this case.

An example from an actual case is an agent representing a buyer and convinces them that they are getting a good deal on a property without disclosing that they have a relationship with the seller.

As a seller going FSBO, as long as they aren't making misrepresentations about the property, nothing changes.

@Eduardo Beltran

Purely depends on the deal. Under most circumstances, the buyer would get the title. Sometimes, that can cause problems if the buyer isn't being assigned the mortgage. In that situation, the mortgage would not have any assets behind it.

Not all mortgages are assignable anymore. So each deal has to be looked at separately.

The other issue is the due on sale clause. If the title is deeded to the buyer, the 1st position bank could call the loan due.

@Roberta Marcos Marcos

I forgot the other part of the question.

Removing your husband from the mortgage would improve his credit score.

It would lower your score because of the combined total debt that you would carry.

Total debts may or may not affect you down the road. Sometimes other creditors will look at total debts owed and lower your credit limits on your credit cards. This "can" be a problem if you're buying supplies and things on credit cards to fix the houses.

@Roberta Marcos Marcos

Okay. That makes sense. Career changes can be a problem with some lenders. Sometimes an employment letter can make a difference. Also, looking for another lender can make it happen.

@Roberta Marcos Marcos

Did the lends explain why? Was it a debt to income ratio problem?

@Danny Delikat

Soil testing costs between $150 to $500. Soil remediation for a leaking home oil tank can cost $35,000.

If you are really concerned have it tested first.

Banks aren't will to do much of anything.

@Account Closed

House hacking is a little different than regular rental properties since it isn't always easy to get positive cash flow on a duplex with a new purchase carrying a loan...

The only way to look at it is cash flow if both parts are rented, assuming you can in your area. Then look at the numbers with the rental income and compare that to how you would live on your own without rent.

You also have to ask yourself, would you live into this area even if you weren't looking for house hacking.

@Michael Peters

Depending on your state laws, you would usually send them an itemized bill for the damages or take them to court. Usually both.

Is the drive way asphalt? Can you just reseal it?

What's the cost of new light fixtures? Cost of refinishing the cabinet? Cost of replacing the carpets? Cost of resealing the driveway? That sounds like a lot less than $10,000.

@Joseph Alvarado

In general, there is no difference in buying a foreclosed property versus any other property. It will be listed on the local multi listing service like many homes.

The only difference is that they tend to be in really bad shape. Of course, that means you're competing against other investors that have a lot of money.

The only way to learn about buying them is to go see a lot of them. The ten homes I might see this week won't be anything like the ones I saw last month. It's very random.