All Forum Posts by: Danny Cerecedes

Hey John I was just mentioning what was said in Podcast 259. I know Brandon mentioned he buys all his properties in his own name and then he transfers them to an LLC. At that point the due on sale clause come in if I understand correctly but if you have enough equity in the property you have exit strategies if they call it due. What Mike mentioned was that most banks won’t call them due. I’m by no means and expert just thought I’d mentioned what i heard on the Podcast.

Originally posted by @John Woodrich:

Originally posted by @Danny Cerecedes:

Just to chime in. In podcast 259 Mike Anderson speaks about the due on sale clause. He states the lenders don't give a dam. Banks would rather get paid off then foreclose on the property. Brandon Turner mentions that he buys properties in his name and then transfers them into an LLC. He said its important to buy good deals and that they have equity in them so worst case if the bank freaked out he could sell, refinance or go to a hard money lender.

Banks I have talked to have given a dam. Small banks can look past it at times for clients but no way a large bank is going to break policy for you, especially after you just purchased a property.

I recently purchased a 4 plex with 25% down, conventional loan required it in my personal name. They didn't require it in my name because I didn't have enough money down or limited financing options, I assume this is to comply with secondary market standards. They would have no reason to grant me an exception which could make my note less valuable.

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Thanks Tom that is biker helpful. We are trying to see if we can do an FHA loan on the house too which may work. I was thinking HM just because the seller wants the deal done ASAP but if he's ok with waiting we may try to go the FHA route.

Appreciate your advice! Glad your house worked out!

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Yes Joe ultimately we are paying $750,000 for the house sorry for the confusion. We only need Hard Money for a $650,000 purchase. Our family is pooling the $100K to give to the seller outside of escrow. We need a Hard Money loan to close the deal fast and then we will refinance into a conventional loan....atleast that is my idea.

Originally posted by @Joe Villeneuve:

So the house costs $750...and the contract reads $65k...but you are giving $100k in cash to the seller to "sweeten the deal"...but if the $100k is part of the "deal", you're paying $750k for the house.

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Hey There Brent!

Not sure what you motive is for the abrasive post but If my post bothers you than just don’t reply to it. This site is about helping each other out and being positive and you aren’t doing either.

Dont bother replying to any of my future post. There have been plenty of people that have been very helpful and thanks to all of you!!

Originally posted by @Brent Coombs:

Originally posted by @Danny Cerecedes:

The purchase price on the contract will be $650,000. The $100K is going to be given to the seller outside of escrow. Just looking for some suggestions Brent. Sorry if I’m confusing you thought I was pretty clear.

$100K is money being pooled from family and money my father in law is gonna pull from a small house he owns.

Contract will be written at $650,000

Apparently you weren't so clear, if @Joe Villeneuve just made the same point as I was trying to!

So I'll repeat my question: $650k, or $750k - which is it?

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Hey Eric,

Thanks for the info. So I spoke with a lender that I typically have my clients use for traditionally financing. He has some hard money lenders that maybe able to finance this deal. The part that is frustrating so far is they say find the deal first and the money will follow. This house has $300K plus of equity already but the best Hard Money lender can do is fund 85% of the total cost which means we would have to come in with 15% which is approximately $98,000 not including closing cost. We are pooling money together to pay the seller the $100K cash and we would have to come up with another $98,000 plus for the Hard money loan. There has to be another way with so much equity in the property to not have to come up with so much cash up front or is there not?

How do people finance using none of their own money?

Originally posted by @Eric Loya:

@Danny Cerecedes I like you're thinking, and as an investor/lender myself, I would pursue a similar idea. There are a few items you'll need to button up to ensure this plan works according to what you've discussed. Here's my take on what's left to accomplish:

1) A HML will take into consideration experience, credit, and cash to the deal. Although you have limited experience, there are lenders that will consider this opportunity - just expect to pay a bit higher interest rate (i.e. 8-12% interest only payments). This is your best bet to land the deal at the sellers urgent request.

2) You'll want to ensure you can get qualified on the back end from a traditional source of funding to pay off the HML. Because of the price after repairs, you'll be past FHA lending limits in LA, and flirting in Jumbo Loan territory. Usually you can refinance up to 80% but since it's a larger loan, the underwriting process is a bit more stringent.

All in all, it's possible to make this happen, just consider the 2 items of importance before you move forward.

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Thanks so much JoAnn. I have attended some meet ups in Glendale and I’m going to attend one of Lloyd’s meet ups. Completely agree knowledge is power and I’m looking to surround myself with like minded people motivated to make this business successful!!

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Whats up Antoine,

So I'm actually looking to gain experience from a seasoned fix and flipper or just someone who is doing it successfully to build my knowledge, experience and network. I know that I would need to offer something of value and bring something to the table. I think my post might be confusing to people if you read it as me helping new investors. I'm willing to help where I can but I believe that I have a lot to learn myself

My out of state rentals are in Kansas City, MO.

What type of investing do you do?

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Thank you Sam!

Originally posted by @Sam Shueh:

C.A.R. Form RPA-CA, Revised 4/10

PRDS

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Hey BP,

I've been on BP for a few years now and I have mainly done deals as a real estate agent representing sellers and buyers and I'm currently managing my client's renovation that I will be listing at the end of this month in Long Beach. I've also purchased two out of state buy and holds and I'm part of a JV fix and flip in Studio City. I did the JV just to start building a track record because I know I will be a stronger candidate for private or Hard Money loans which I will need to purchase properties.

If anyone is looking for some help in their fix and flip business I would love to offer any help I can to learn more about the business and eventually take on my first one. I would like to offer some value too and one thing is my access to the MLS and potential pocket listings that come through our office. I look forward to learning!!!

Thank you and Cheers!!!

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All Forum Posts by: Danny Cerecedes

Danny Cerecedes has started 18 posts and replied 89 times.

Post: LLC Minnesota to get one or now.(mortgage still in personal name)

Post: Help with being creative with a deal?

Post: Help with being creative with a deal?

Post: Help with being creative with a deal?

Post: Help with being creative with a deal?

Post: Looking to Learn in Los Angeles

Post: Looking to gain Fix and Flip Experience in the Los Angeles area.

Post: What Contract to use to make offers in Ca?

Post: LLC Minnesota to get one or now.(mortgage still in personal name)

Post: Looking to gain Fix and Flip Experience in the Los Angeles area.