All Forum Posts by: Dan M.

My two cents Id start smaller if your just trying to flip. The carrying costs on a larger property will be significant depending on where you buy. Alot of people are in the market for a 300k home , not many are looking for 900k but do your market research depending what area you choose. The hudson valley is a big area and taxes vary wildly. 

Its negotiable. It could be any of those scenarios. What it boils down to is how active is Max with the management and day to day running of the property verse the other 2? Personally I think if all 3 partners have an equal role, then they all get equity equal to their initial contribution. So its a modified A for me ( consider taxes / with holdings ). 

Can you be more specific on what you mean who isn't in the Hudson Valley? 

A great place to meet wholesalers is in person at the local real estate clubs/ meetings. You can also network on social media facebook has a bunch of groups. A wholesaler would love to get a buyer on their list. 

@Ramel Ruffin Equity is : The difference in the appraised price of the property by an appraiser MINUS what you owe on the property . So say an appraiser says your triplex is  worth $300,000 , you owe $200,000 dollars on it. You have 100,000 in equity.

First off, you have to OWN IT ALREADY to have equity.

Second keep in mind most banks will only loan up to 80% of the value of the home. Its expensive with closing costs to do a loan or purchase a property. So in the scenerio above if the property is worth 300,000 , a bank would loan up to 80% of that value.... so thats 240,000. If you owe 200,000 on it they would give you a total of 40,000 dollars. But it might cost you 8,000 in closing costs to borrow that 40,000. 

I wanted to do a quit claim deed in a similar situation and my attorney told me exactly what you said "Why bother with a quit claim deed when you can issue a warranty deed?" . I was under the impression a quit claim deed would be cheaper that's why i wanted to do it to begin with. 

My original thought is find a competent attorney and do it all legit. They will know what to do. I'm guessing you will write a promissory note for the 18k with interest , then after the closing that will be paid back. The amount that the father loans to you again could be a promissory note or a lein against the property ( maybe? I'm not sure what bankruptcy allows ) at whatever interest rate you guys negotiate. Just do it all legit so there's no title issues when and if you decide to sell. 

Great job Joe. Its good to see properties turn around and make a community better and that its possible. I'm curious what is the net cash flow now? ( mostly so I can calculate a rough ROI on a property that large with no financing )

You will pay income on the fee no? Doesn't that defeat the purpose? 

This might sound dumb but have you talked to her? What would she like to do? If shes onboard with your plan of taking out 50ish k mortgage and take the rest in cash then do that. By doing so, from her perspective, if you miss a payment she keeps your 70k and takes the house back so thats really good protection. She can earn a little income by the interest she charges you, and any value you add to the home is hers really if you default. Its the ultimate no to low risk for her and that suits your plan of taking ownership. When you sell, her mortgage gets satisficed and you keep the remainder.  Just talk to a competent title company or attorney it should be really easy and low stress.  

To me that's the easiest lowest cost scenario.  Hard money is expensive and they will not hesitate to take the house from you if you don't meet the terms of the loan. 

I'm pretty sure you can search by county too. It should have an interactive map as well if I recall. Just be wary with these hudhomes. I bought one and it had serious burst pipes even though it was "winterized". Cost me alot more then if I just bought something straight up outside of that website.