All Forum Posts by: Frank Greg

You may not be doing business in a certain state but if there is a business related dispute with a third party or some truck driver at XYZ Inc.. looses control of the truck and destroys your property, without an authority to do business in the state, you have no standing to bring action in court.

The real estate agent is likely involved at a minimum on the seller's side unless property is being sold by owner. Rarely use a realtor to buy though but obviously not advising buyer's to not use a realtor especially since some seller agents can be a thorn. If involved in an out of state transaction certainly can benefit from having a realtor on the ground.

We were able to deduce costs based on the financials of other developers. 

When we initially inquired about what other contractors margins and average labor costs were.. the conversation did seem to drift or focus on comments about which contractor would or would not work on a labor only basis which wasn't quite the question.

Its not if we are thinking about having the contractor source for materials -- its not an option. But they'll be retaining them on a limited basis to supervise project and personnel staff. 

 There are of course pros and cons with this. The more you drift toward the realm of the "subjective", that can also be a problem as the result becomes more vulnerable to what often can be substantial manipulation if the realtor for instance has an interest in the transaction.

If software has any advantage, there is some value in knowing what the average or mean is for an area based on several hundred or thousand+ transactions as opposed to 10 or 12 properties (or less) in a manual computation. 

Most apps or website can also enable the user to quickly get a ballpark feel/pulse for an area -- which can be helpful if you have thousands of potential deals to sift through. 

You, the relative lending the funds or whoever you guys use to draft your contracts, would draft the loan docs to reflect whatever your arrangement is on the private funds lent. 

Who owns the investment property you are looking to buy and how many properties?  

 The amount of $50K does seem low but if the data you sent check out, not sure what the issue is.

So it sounds like the use of funds is personal. If it were for investment purposes that might broaden your options.

There seems to be a slight confusion. It seems you initially stated that only 25% of rental income (your share in the partnership) was being counted towards your income for refi purposes. So is the issue that the entire principal for the 108 unit (which you co-signed and also offered a guarantee for) is being counted towards your DTI and thereby causing complications?

 It's called a bullet loan. The exact payment on the maturity date would = $10,423.

That too would have also been addressed in the note. The note should have had language in there that stated the 'lender' can sell and assign its interest in the note but has an duty to provide you notice of who and where payments should be sent to. 

Obviously you want to have proper documentation and if anyone is incapacitated, you may want to get them to work through an attorney to cover your rear. Ensure you have a things witnessed and notarized if you have to.