All Forum Posts by: Dustin DuFault

Bill - thanks for your help!

Dyou mean I should draft a lease assignment and file that with the county clerk, correct?

I may, unfortunately be simultaneously in the midst of my first eviction with this particular tenant, so I want to make sure I don't create any issues with the enforceability of their lease agreement. Not sure if you have additional insight for me on the viability of an assignment. I'm willing to contact a real estate attorney, but wanted to get your input.

Thanks!

Team BP,

I acquired a property via foreclosure auction with cash in the name of my LLC. For a variety of reasons, not the least of which is access to financing, I have decided to move the property back into my personal name (well, my wife and I).

My plan is to have the title switched to my personal name when we record the mortgage with my financing company. I've already looked into it with them and they are agreeable to that arrangement which will save some recording fees. What I need to find out now is how should I handle my current tenants lease that is signed with my LLC? Can she continue to hold the lease thru the LLC, with me just doing a low-cost leaseback to the LLC in my name? Is there another way this should be handled?

Thanks!

Dustin

I've also heard on BP that another reason to paint copper is that the paint must be cleaned off prior to scrapping --- and most thieves aren't going to engage in something as laborious as sanding pipe!

I agree with the previous post that you should probably replace what was stolen with PEX. Easy to install, and it won't get stolen!

Just upgraded - I'm more than happy to support the site.

As far as I'm concerned I get a *lot* more than $150 in insight, advice, and experience every time I get on BP!

...plus now I get to checkout what I've been missing in the cool kids club!

:D

@Chris Martin

Thanks for the reply!

Have to admit I was blown away that I didn't see this document referenced anywhere else on the site. IMO knowing the ins and outs of the Fannie Mae underwriting requirements is a great way to grow as a professional and have a better understanding about what deals to make, and under what terms.

I'll definitely be leveraging (pun intended lol) this doc to maximize my opportunities in the future! It's also a great way to stay up to date on the latest underwriting requirements as these do seem to change from time to time.

Thanks again,

Dustin DuFault

Just wanted to take the opportunity of the Thanksgiving holiday to appreciate the bigger pockets community. The knowledge & camaraderie on the forum is awesome.

You all are appreciated & I'm thankful I found the site!

Happy Thanksgiving!

I think Wayne may have picked up on something that I didn't in your post Peter - which is that it seems you may be saying you are now uneasy about the deal because of the appraisal. If that's the case I'd take a step back and make your own independent assessment. Here is an appraiser story...

I once bought a bank owned house. It was not marketed well and I got it for an absolute steal of a price. My lenders appraiser came in and said it was worth a few thousand more than I paid. One year later I was using the same lender on the same property to do a cash out refinance (a loan where you take out some of the equity that you have in a property). The lender hired the *same* appraiser who sent the *same* guy out to evaluate the house. With no major market fluctuations in my area that year, he said the house was worth twice what he did the year before - which was still a lowball figure.

Point being - the primary function of the appraiser is to make sure the bank doesn't get stuck with a property that is worth less than the loan made against it. So long as it's apparent that this isn't an issue, they will end up at or near the sale / loan price.

So all that to say I wouldn't let the appraisal swing you too hard if that is indeed the concern. Just make sure your confident in your rationale for the valuation that you made.

Your risk lies within the terms of your contract. Most likely under the contract terms you are liable if you do not apply for and seek financing. If that is the case then your binder would be at risk. If you've paid an application / appraisal fee to the lender that could be at risk as well.

If there is another reason to quit the contract you could exercise, I would be pulling that lever. This could be something like an inspection period (i.e. I found such and such, which I wasn't expecting, I need to withdraw from the deal, etc.)

Good Luck! It's a good lesson to put down an appropriate binder based on the deal as well. Less on the binder, less at risk.

@Michaela G. Haha, lol!!

Truthfully I bet it is a deterrent.

It's concealed carry for both the wife and I. I've been in some sketch neighborhoods, too. Then it's my flashlight in hand and firearm in a should bag and/or fannie pack (not zipped if I'm in an unsure situation).

The flashlight is one of those high power jobs that lights at 1100 lumens and strobes like crazy to disorient an attacker. They are also great for inspecting property - I recommend them. They take a special rechargeable battery, but that's been an advantage IMO. Reduced expenses and long run times. The one I'm using at the moment is made by 'Klarus'.

Every once in a while I encounter someone else with a fannie pack. I always assume they are also carrying as that's the only reasonable reason to have one anymore!!