All Forum Posts by: Gurjot Grewal

Hey everyone I have a newbie question,

Lender 1: bank, buy under personal name, max 3 properties but better rates

Lender 2: HML, buy under a corporation, more scalable, worse terms

Id like to start with the bank. But they are really slowing me down. Had me open 2 more credit lines as I only had 2. Now those will take a few weeks to be in effect. Or will require a coborrower.

Question:

If I used the HML which requires me to incorporate, would I still be able to use the bank for 3 properties later on as the properties wouldn't be under my personal name?

@Mason Hickman It was a home that's been on market 180+ days, sellers are probably just frustrated it hasn't sold. The deal was also messy as my lender asked for an extension before denying me due to being "over-obligated."  It's been now a couple weeks. Do you suggest calling the sellers broker? 

@Chris Seveney the seller is not releasing. My broker that was involved on the deal, I am no longer working with. 

@Bruce Woodruff I have reached out to an attorney. 

@Mason Hickman @Russell Brazil

My financing was denied, and I had a financing contingency. The deal went south for a number of reasons. One reason is they renewed one lease of the duplex 400 under market for a full year 2 weeks from closing. 

Based off the language in the contract, the EMD is rightfully mine.

Contact a seller directly to try and reason them into releasing EMD when agents were involved?

If they dont listen to reason, threaten to pursue a lis pendes. Can I get sued for just making the threat? 

-seller wont release emd 

-no longer working with this agent 

 @Jill F. yes i was represented by an agent. He didn't mention this to me. How would I go about this? 

 @Jay Hinrichs do you think it would be worth it to reach out to title company? Even for the lawyer to write a letter it'll cost 200-300, maybe I just offer they keep 200 or I wait the 2 years before its released to me. 

Hello BP,

It's only $1000 but with the language in the contract, it should be returned back to me. My loan was denied due to "excessive obligations" and "lack of income for obligations". I forwarded this to the seller the same day I got the email. The sellers are now trying to claim emd themselves due to an "email stating loan was subject to conditional approval," which I asked to see but they ignored and I dont think exists. I talked to an attorney who said he could write a letter but that since the emd is so low this may not do much as we wont be sueing. 

I want to threaten a lis pendes as they have put the property back on market, but my realtor doesnt want to forward this message as he doesnt want to get into legal trouble. He suggested I could look up the sellers name and make that threat directly, but this doesnt seem like a good idea. Otherwise I wait 2 years once its gone unclaimed and collect it then. 

Does anyone have any tips on how I could get them to release this emd? It's frustrating because the seller partly killed the deal themselves by renewing a lease 400$ under market rents for a full year a couple weeks from closing. 

Hello BP,

I thought I had my first investment deal ready to close. We are past the inspection period, waiting on loan approval. But today I find out the seller renewed the tenant on one side of the duplex at 950/month for a full year. My property manager believes market rents are in the 1200-1300 range. I ran all my numbers at 1250/side. Leases were set to expire in febuary. 

If I close now my roi is only 2.3%. This is now a bad deal. I also think the dscr is too low so maybe the lender will deny my loan. 

I have a financing and appraisal contingency. What other options do I have to get out if this contract without losing my EMD? Would appreciate any help.

 @Joe Villeneuve that makes sense. I am past my inspection period. I have a financing and inspection contingency in place. Going to talk to my lender about this. Any tips for getting out of this contract now? I am worried about getting sued

@Joe Villeneuve @Joseph Beilke @Stephanie P.

Thank you all for the replies. I am going to take your advice. I have also let my lender know about the lease renewal. Looking at the numbers it would be a 2.3% roi first year, plus the cost of the appraisal and the possibility of the loan getting denied and losing the extra emd if I sign the addendum. It should be 7-9% roi second year which is tempting me but I think I would rather put my money into something that gets me the returns I want sooner. I am also open to rehabbing an old one but those opportunities are tough to come by in my market.