All Forum Posts by: Daniel Michael Phelps

@Zack Caracciolo

This sounds great and is something I'm interested in doing but unfortunately I'm not local in the area. I started investing in the area last year and currently have a few properties with (2) others under contract. If you end up doing a web based meet up I'm in!

@Steve Morris Thanks for the explanation on the difference between the 2 deeds. All together it will be a short time frame that the VA will have had possession of the property so the real question is to make sure there is no cloud on title from previous owners?

@Wayne Brooks   the escrow company that I'm working with said they would write the title insurance in the same manner with either a quit deed or SWD so in reality it shouldn't really make a difference correct? As long as there are no special exclusions / exceptions in section B of the policy

Steve Morris

I'm currently in the process of purchasing my first foreclosure which happens to be a VA owned property. We are scheduled to close on this property on 1/12/21. Today I received an email from the escrow company that I've copied below.

     The Deed has been recorded and is finally indexed on 669 Artic. The VA will allow closing to take place by 1/12 if you are willing to accept title via a Quitclaim Deed rather than a Special Warranty Deed. The VA has not issued approval to close with a SWD yet. The alternative would be to extend the contract closing date until the VA has a SWD approved to close (but there is no timeframe for that). We can insure on a VA closing with title insurance just the same on a Quitclaim Deed as we do on a Special Warranty Deed. Are you OK with proceeding forward with the Quitclaim from VA?

As stated, this is my first foreclosure deal and also the first time I've come across the possibility of closing a property via quitclaim deed. Seems the title insurance will be issued in the same manner either way, so is there really anything I should be concerned about? Will it be harder or take longer to have this recorded/transferred into my name or cause issues down the line? This is a cash purchase with no lenders involved and the reason why this option even exists. Any feedback would be great.

I just completed negotiations with a seller and wanted some advice on a situation I've encountered on back to back purchases now.

After negotiating, the seller has given me a $3,500 credit towards repairs. Is it better to have the purchase price reduced by $3,500 or to have a $3,500 credit towards closing?

My initial thought was to have the purchase price reduced which would result in a small reduction in property taxes for the entire length of time I hold the property. I realize this may not be much money at first glance, but if I hold the property for 10+ years then it starts adding up. I would appreciate any feedback.

Between the two scenories, Which one generally offers the better interest rates and lower cost of obtaining the loan when dealing with bank financing?

Option 1) Do a cash out refi on a property that is currently paid in full. Use this cash to purchase the next property and repeat the process.

Option 2) Use a conventional loan with a 20% down payment on a home.

Does anyone know as far as interest rates are concerned if one scenario is better over the other? The cash out refi is appealing as it allows me to come into the next deal as a cash buyer which is always more appealing to the seller.

I've done some investing in Southern CA a few years back, and I'm looking to go elsewhere for the next investment since prices here make no sense for investing. I was looking to get some ideas from others how I could maximize $200k - $250k by going out of state. My initial intentions are to acquire (2) properties with the money, but I'm still trying to narrow down a market, or possibly go with a turnkey company. I wanted some insights from others, how they would approach this. Thanks for any suggestions. 

Was able to do a cash out re-fi for $200k and lookimg for ideas how to maximize the money.

@Daniel Michael Phelps

ok

I was able to do a cash out refi on a property I owned free and clear and would like to hear some suggestions how to maximize this amount of money. Im new to the industry besides this one property.