All Forum Posts by: Connor Wingfield

Eddie Egelston point taken, thank you. Based on your suggestion I should shop around more. But I guess my point is that will anyone actually be able to 100% guarantee (assuming all the paperwork is good) they will close prior to escrow?

To make a long story short, I am an architect that has been doing work for a flipper in LA. I've been presented with a deal to buy one of his deals at a price that seems way under market. This would be my first flip where I would be buying. I have been hustling to find figure out the financing, and found the best option with Patch of Land, who are a sort of hybrid HML and social financing company. They have given me the OK to move forward, saying in an email and verbally that they will offer purchase and rehab money.

As soon as I went back to the seller with my he explained that he needs a 20k non refundable escrow /  earnest deposit. His concern is that if we go into escrow with out this the and the lender is decides after their appraisal and or anything else  he is going to loose out on time/money. 

The lender is OK doing the appraisal prior to escrow but still unable to tell me the probability of closing at this point. I was wondering if anyone else has been in this situation and or if any one can shed light on what other issues I should be concerned about with a lender not being able to close. Also any issues to be concerned about with a non refundable escrow?

Thank you!

Jumping on this a bit late... but It sounds like you're finding yourself in a pickle. The whole situation does seem overly complicated just for a restroom addition. I don't want to distract you with my speculation of what's going on. But I would recommend cutting out the middle men. If you have a site plan, it may be smart to take the drawing down to the building department and ask over the counter what is needed. Getting a building permit is rarely a cut and dry process. But the more you go through the process yourself, the better you can someday delegate it smoothly.

Understanding your building and zoning code can make or break a project like this. I would recommend printing out photos of the building as well as aerial shots and taking them to your building department. It's kind of like going to the DMV, just take a number and talk to someone over the counter about your plans. They should let you know whether or not the specific parcel can accommodate four units. The big thing here in L.A. is parking. Every unit will need to accommodate at a minimum one parking space on the lot per unit. This is probably different where you are, but in Los Angeles as often prevents this sort of conversion.

Allan Glass sorry I'm late to the convo, try getting some architects to rent some space, there are plenty of us who could provide mutually beneficial services in this environment

Architect here. Look into splitting up the approval process into phases. 
Not every architect will have your urgency, so you need to be up front at the beginning and ask for them to help 'phase' permitting. 
Take a site plan and required drawings (can be really simple) to the building department and have an initial meeting. 
Small projects can be approved over the counter, it's kind of like going to he DMV. If the can't approve them they can tell you exactly what you need to do, and tell you how long it will take. 
Some people get creative with permits. They will start with a kitchen remodel permit, which can usually be approved over the counter. They can start construction on the kitchen. At the same time submit the rest of the drawings for permit that may take more time.

I really like the advice of Sean Walton especially if you are in a big city. Hire an architect, drafter, or building designer who can help you split up the approval process into phases. Not every architect will have your urgency, so you need to be up front at the beginning and ask for them to help 'phase' permitting. Take a site plan and required drawings (can be really simple) to the building department and have an initial meeting. Small projects can be approved over the counter, it's kind of like going to he DMV. If the can't approve them they can tell you exactly what you need to do, and tell you how long it will take. Some people get creative with permits. They will start with a kitchen remodel permit, which can usually be approved over the counter. They can start construction on the kitchen. At the same time submit the rest of the drawings for permit that may take more time.

Thanks Chris, appreciate the reply. Well aware that it isn't the most straight forward loan. I'm asking here because although it may not be your, or other people's favorite loan, it is a good loan and I'm there are people who have experience. Ideally I'd like to hear from an investor who has gone through it recently in LA.

Bigger Pockets world, I'm looking from someone who might recommend a real estate agent in Los Angeles with experience dealing with FHA 203k loans. I have a list of criteria what I am looking for, and have been looking through specific ZIP Codes. I would like to find someone familiar with Los Angeles and would be able to find opportunities I haven't been able to find myself. I have a pre-approval letter ready would like to start making offers on the right properties asap. Thanks, Connor

@Louis Davis I'm interested to know more about what you are finding. What zip codes are you working in?