All Forum Posts by: David Kimball

If I get a conventional or portfolio loan as an LLC with a credit/income partner, will my credit/income definitely have an affect on the eligibility? I'm guessing yes unfortunately.

Is there a way to NOT be on the LLC that takes the loan yet still have an agreement with my finance partner to equally share ownership as I am the deal finder/manager?

Thank you all. This is very helpful feedback. Much appreciated.

Thank you Karen. Sorry for the confusion. Ethan and I work together. Better for me to just represent on this discussion from here on.

The JV is between me and a guy who brings to the table his experience and of course the deal itself, since he is the one who found it.
I wouldn't be able to find as good of a deal, or hit the ground running with landlording as well as he can.

I have been offered an opportunity to invest in a duplex in a good area in Jersey City with someone who knows what he's doing. He found the deal through a marketing effort, and has it locked up at a great price.

The thing is, he wants me to put up 100% of the purchase. And then we would split the profits 50-50.

Now, the exit strategy is not totally clear. If we flip it immediately, then the profit division is clear (in fact I would be getting a very good return on my money for not doing anything). If we hold it and share landlording responsibilities however, first of all how will we decide who does what to make it fair? And secondly wouldn't I be getting a bit short-changed by paying for the whole house and getting only half the cashflow?

Okay. By the way, is the bank required to stay in dialogue with me exclusively until we come to a price? Or can another buyer come in while I am in this last stretch of negotiation, and just nab it at a higher price?

When responding to a counter-offer from a bank, what is the best response?
1) inch up the price by $500 or $1000... or even $1500.
2) respond with the same price firm
3) "Serious" counter offer, i.e. 5-10k more.

If it is acceptable to do so, I think I would like to do option 2, because I honestly did not leave any headroom when I offered my best price.
What can I do to sweeten the terms? Decrease closing time from 45 days to 30 days, or is that kind of silly?

So if I understand correctly, because this is an AS-IS house, I can not expect to people to pull out of the deal on that basis of some found problem. Makes sense I suppose, since this is not supposed to be some kind of immaculate retail home.

It's interesting though because when buying a retail home, the liberal inspection contingency functions gives you in effect a kind of "reconsideration window" right? You can change your mind and just make up something that you found wrong in the inspection.

But when buying a fixer-upper, you can't get away with that - so you have to be ABSOLUTELY CERTAIN you want to buy the house by the time you are at the end of attorney review.

I wonder if I should tell the realtor honestly that I am still just nervous about what might be hidden or not obvious to my non-construction eyes. And therefore, I would like to have a very low deposit, such as $10. And I will try in good faith to find an investor for it by closing.

Thank you again everyone for the help.

I am about to make an offer on an AS-IS SKELETON 3-family using the seller's realtor's contract. I'm wondering if anyone has thoughts about this clause in the contract:

"If this Contract is legally and rightfully cancelled, the Buyer CANNOT get back the deposit and any money paid and the parties will be free of liability to each other."

There is also no inspection contingency written in there.

Shouldn't I request that at least an oil tank inspection contingency be included, or even a general non-specific inspection contingency? And that the nonrefundable deposit clause be reworded so that IF there is something wrong upon inspection, I can back out fully and get the deposit back?

Huge thanks!

I am new to Sheriff Sales, so may be a dumb question but how do I protect myself from buying a property at sheriff sale that turns out to have a leaking underground oil tank, or termites, or another issue that is not visible upon drive-by. Even if I knock on the properties' door before the sale and ask for a quick tour, and the owner tells me there are no such problem, how will I know for sure?

I understand that in NJ you can vacant a 1-3 unit home upon your move in date by stating that you intend to move in. How is your move in defined or tracked? What is the minimum time you have to live there? A year?
Say the minimum is more like a year, can you get around this by just subletting your unit for that time using a sublet agreement or guest agreement or having "roommates"?
How is this different for an REO property?
Thanks greatly.