All Forum Posts by: Eric Miller

I am posting these questions because I don't want to repeat mistakes I have made in the past.  What kind of things should I ask or find out about a lot before making a purchase.  I pretty sure of the basics already like what utilities it will use, and if a water meter is even available.  Also, I am pretty sure that I should find out what jurisdiction I will be obtaining building permits from.

Another question about this project is financing.  What would be my best option for paying for this?  I am thinking of a cash out re-fi on my existing home to get started (about 75% equity now).  I think that would buy the lot and get a good start on construction.  Then construction loan for the rest?  Keep in mind, I am a newbie to building, so maybe I should just scrub my financing idea all together.

Any other things you all think I should consider?  Input would be greatly appreciated.

We are planning on this to be our personal residence. Then selling our existing home after building.

Thanks in advance, Eric

I would advise the victims to contact law enforcement.  That is the standard response to criminal activity.  If the victims are too afraid of retaliation by the gang members to come forward, they better get used to being victims because it wont stop.

Looks good at a glance, but surely someone with more knowledge will be along to verify this claim.

I see about an 11% CAP and 25K cash flow with a loan at 6%.

The one thing I would add, is never consider managment optional, someone has to manage it.

Keep us informed on how it goes.

James, here is a great article posted by Josh.

http://www.biggerpockets.com/renewsblog/2010/06/30/introduction-to-real-estate-analysis-investing/

If you have about 20 or so minutes, it is an easy read and covers more depth than either the 50% or 2% rule can. Yet, it is explained simply enough that even I can understand it.

At least being a pit owner isn't a protected class, yet.

I think most would agree with me when I say renting to family is a bad idea. If she can't afford rent anywhere, what makes you think she can afford rent there? I am not saying that it can't be a win, win situation, but I believe that to be the exception rather than the rule.

Another thing to think about is you stated that you could just charge rent equal to your costs until she could afford to move out. In that case your investment is tied up until she makes changes to improve her situation.

Just my thoughts, Eric

Ya beat me to it. :)

The other day I was at my bank and there was a sign up that offered 3.6% on a 30 year mortgage. So I asked the teller if that was for re-fi's too. He said yes, what is your LTV? I told him it was right about 100% but I was just curious. He then said. "that shouldn't be a problem, because we will loan up to 125%"

He got the deer in the headlight look for a couple of seconds.

So at my bank, it seems that they want more inventory.

Eric

Thank you all for your quick answers. The acceleration clause is worded to be a due on clause. There is no mention of the requirement of insurance or that prop. taxes are kept current. There is mention of balance being due immediately upon default, but it doesn't specify how late payment will be to be in default.

I will request that insurance and taxes be current, and put in a time period that a late payment will make note default.

Thanks again, Eric

Good morning real estate gurus. I have a question about a house we are selling. We own it free and clear, and have accepted an offer for about 34% down with the rest seller financing. My question is, should there be a clause in the note that the borrower will have insurance on the property, and keep the property taxes paid? I know that all of the bank loans that I have had, had this clause. Another question, the note he had drawn up has an acceleration clause, but there is no mention of how default is triggered.

I apologize if I left out any important information, I read here quite a bit, but post little.

Thanks in advance, Eric