All Forum Posts by: Jeyo Punnakottil

@Theresa Harris

I agree to sticking firm and not dropping the contract But you cannot threaten the builder about getting the attorney, any word with the builder about the attorney and they will stop communication with you and say their legal team will contact you.They know the game.They been in business for long and build 1000s of houses.They have their cards in order and have a full fledged legal team.So donot pull out that card infront of them.Instead i would advice find a good attorney that specializes in real estate . Have that attorney review the builders contract and ask the attorneys advice for the next step.Its worth paying the attorney a few 100$ if you want this to end properly else the builder is going to win .

@Joe Splitrock most lenders wont let you close a loan in an LLC @ first so there is no option left but to close the loan in your personal name and then quitclaim the ppty to an llc.I was scrambling a yr before with this issue went to 8 lenders no one will close the loan in an LLC name.How can it be be justified @ this point that corporate veil is piereced.Then that means there is no way asset protection and bankers are purposefully pushing you to do it.I am not a lawyer ,this is not a legall advice but just sharing my thoughts.

@Shyam Panchal

It all comes to Cash flow .If you are buying this ppty as a rental i would look into is this a killer deal to pass.From the conversation it seems you are buying a top of line ppty which has some minor and some major issues .Any one can say donot pass it on ,it is hard to find pptys as it is a sellers market,that doesnot mean you have to buy a rehabbed ppty (possibly a lipstick on a pig) and then throw money @it again if it is a skinny deal.A NO DEAL IS BETTER THAN A BAD DEAL.

Water heater i would not worry too much will cost 400$+Labor

The AFCI needs attention bcoz in most cities in texas a remodel will not pass city rules if a new breaker box is not installed ,try negotiating with seller on it.Either he puts afci or you get a reduction .It will cost 1000$ + labor

Mold is a concern.How was it fixed ask if they got professional remediation.Ask to see proof.If proper mold treatment was not done and you do like someone said just brush it off with vinegar or stuff you are on the hook if your tenants get mold in their system.Now it is on you to professionally remediate mold for your tenants (expect couple of 1000$) else you are looking @ a lawsuit down the road if the tenant know what they are doing and trust me tenants will

If you have inspection contingency on your contract i would fig out how much the repairs cost and negotiate based on that.

@Shyam Panchal Hearing your side gives me the impression that this is a lipstick on a pig kind remodel.If you find mold in a fully remodeled house that means they did a sloppy job.They didnot do a mold remediation.Mold remediation is a costly process and all they did was paint over the mold wich is an easy peasy.Like some one mentioned everyone and their uncle are into flips .Did you waive inspection contingency?

@Mrinal Parashar.Great strategy.Thanks for sharing.

@Mrinal Parashar How do you handle Ppty tax hikes and Insurence hikes if you are not increasing rent.Just curious.

@Tracy Streich Thank you for the reply .I agree to your logic.Never had a claim on my both ppties and insurence is going up by 500$ and 650$ on my ppties . Ppty taxes also went up like crazy in middle of pandemic .

Lease is coming due for renewal end of June.Tenants what to extend lease for 1 yr.Tenants were excellent the past yr.Always paid rent on time.Took care of property.Never had an issue .What is the typical rent % increase happening in the market with Covid circumstances (3%,5%). I donot want to overcharge the tenants but still have to factor in inflation.