All Forum Posts by: Howard Lawton

and replace microwave and stove in white?  

I've rehabbed the entire house and this is my last decision.  House is very middle class neighborhood......difference is about $700.00.

I've put a lot in the house and we'll see how it goes when I put it up for sale in a few weeks....got it at a great price. 

The prices in this neighborhood are all over the place.........houses that have sold are 50/50 white and stainless.

What to do?

thanks    

Point of Sale inspections are done by the cities before title can be transferred to a new buyer.   The homeowner can do required repairs or the new buyer can assume the violations and has a period of time to complete the repairs.......I know of two cities that give 6 months. If the new seller assumes the violations an amount determined by the city has to be held in escrow and will be released upon satisfactory reinspection.   

Well.....I try not to charge myself too much and be available to myself 24/7.  On the other hand.....anyone who has themselves for a client is a fool....but definitely more economical.

Truthfully it really depends on your particular circumstance.  I usually charge a flat fee depending on what they need......most of my clients I consider friends and they ask my advice along the way so the deal can be properly negotiated....the paperwork is usually a simple aftermath.  But I'm in Ohio and other states like California may require more involvement.

If you have lots of deals and need constant availability a flat monthly fee might also work as a cost of doing business.....good luck!

Nice!

It depends on perspective here.  

From their perspective, 

I believe they get the tax deduction for the interest and need to be able to pay their monthly payments on an ongoing basis. This minimum payment is substantially different from bank to bank.

Another issue is interest rate. A HELOC is harder to get these days and the rates from larger banks are much higher. For example, being Chase customers we always get 4.5% offers which is way high for me (before the Fed raised). We can get 2.99 (now 3.24 %). Also, since the housing crunch my bank no longer caps rates like they used to. Lastly, unless it's a fixed loan and not a line of credit the rates will rise in the next year(s). March will probably go up .25%.

How will they be securing the loan? Will the property be in their names? An LLC? Will they take a mortgage against any entity to protect themselves?

Just some things to consider.

From your perspective

Assuming they are financing and somehow securing their money.....it makes no difference as long as it is funded.  You're issue is more of an Agreement in some form or fashion as to how any business or partnership will be run (are they passive?)  and profits and/or losses addressed.  

Good Luck!       

Arpan and Todd are exactly correct....good points!

I can only speak for myself.....I am a newbie real estate investor but have a legal background.  I just wouldn't do it...plain and simple.  If I'm not on the title I'm not interested...AT ALL.  

You could always take a first mortgage but would you really want to go through the foreclosure process? Who would get the proceeds from a sale without a mortgage?....good luck chasing down your money.    I think it would be a big mess especially with the business relationship you have with this person.

By the way....without control of the money or asset that "detailed contract" could become basically worthless without some collateral behind it.  Ask yourself....any chance a bank would do this......absolutely not.  

Also remember....suing someone who needs your $35K means it's unlikely he has any money and attorneys are very expensive.....just a guess....ask him for his credit report....you'll probably never hear from him again.....I could be wrong. 

My 2 cents 

Thanks everyone! 

Thanks so much!