All Forum Posts by: John White

Thanks for chiming in Brian. Yes, I can buy the property. I also had that same feeling that doing work on a property that I don't own or control somehow doesn't feel right to me. That said, putting $30K into a rehab and getting close to that back sounded appealing to me (but, probably too good to be true). Obviously, by not taking title in my company's name, I save on insurance costs, tax stamps, and those closing costs. That said, I'm not looking to save money to be a fool. Now, as I read your post, it does generate a question. You mention me getting the deed in my name (i.e. purchasing it), but then go on to say that I should protect my money with a note and a mortgage? Wouldn't I already be protected (in terms of the property) because I now own it? I apologize if I'm asking elementary questions. I'm just trying to ensure that I understand the advice I'm being given. Thank you again for offering the advice.

John

Good Afternoon All...

I need some advice, as this is my first scenario where I've been approached to fund a rehab. Here are the details:

3 bed, 2 bath cape, 1500 square feet, .68 acre lot (large lot for area). I can purchase the property for $85K and sign a contract with the contractor for the renovation ($30K). All in, I'm at $115K with an anticipated sales price of $150K (he believes closer to $170K, but my comps aren't nearly as ambitious). Here is my dilemma. The contractor has a lease purchase on this property (I've already reviewed the paperwork with the title company) and must close on the sale by February 15th. He is willing to share the profits with me 50/50 if I just fund the rehab. While on paper, it's a superb ROI, how would I structure the deal to protect my share of the profits and my $30K in renovation costs without purchasing the property and taking title? Can I put a mortgage or lien on the property to protect my $30K investment, without taking title? If yes, how would I then protect my share of the profits (I own a brokerage, so would insist upon listing the property when complete) to ensure that I'm not just guaranteeing only my $30K back (which would amount to an interest free loan)? The property does not currently have a mortgage on it. Any and all advice is most appreciated.

John

Thank you to all for the feedback. Justin...I attempted to PM you but was told that I couldn't do so without upgrading my membership? Not sure what that's all about, but perhaps I need to look into upgrading my membership. I appreciate your willingness to assist. I sent you an email from my email account. Always interested in JV'ing deals with any rehabbers in the area. Thank you.

John

Hi Joe...

Are you saying that I wouldn't be using the end buyer's (the buyer I am wholesaling to) funds to fund the transaction? I thought that's exactly what I would be doing, as I assumed that was the point behind wholesaling. Please let me know if I'm missing something here, Joe, as the wholesaling angle is a bit new for me, and I'm simply trying to educate myself as much as possible.

John

Good Afternoon All...

Is there a good resource to find a boiler plate document (P&S) with an assignment clause, or do most of you simply write it into the standard P&S under "additional terms"? I'm certainly willing to join a local REIA if it's available through there? Also, I've talked to a few Attorneys in MA and NH who look at me cross eyed when I mention a "double close" or "wholesale" to them. In fact, I've had more than one Attorney tell me that it's not even legal to do in MA or NH. Can anyone shed any light on this? Is there a good place (perhaps on one of these forums) to ask for referrals of Attorneys they've used for double closes? Just trying to educate myself and add some members to my team. Thank you for any and all replies.

John

From what I can tell with the Nest thermostat, it only keeps the temperature within 3 degrees of what you set it at. That is WAY too big of a variation for me. I picked up the latest Honeywell, wifi thermostat (I believe I bought it at Home Depot for $249.00), and I love it. In fact, I purchased two of them for my own home and the app for IOS is outstanding. It also keeps the temperature exactly where you want it to be. I also find the user interface a bit more interesting than "The Nest".

John