All Forum Posts by: Ivan Jouikov

I just noticed that some people answering to my post are doing it at 4 AM and whatnot... wow!

I used to wake up at 10 am, now I wake up at 5 am (pacific). I usually follow this by my early "inspirational readings" (greatest salesman scrolls, at the moment), then by a bath and some educational reading (millionaire next door, at the moment).

After that, brew some green tea and go to my office to get started with my day (some time 6 am).

Can you handle that?

As far as I know, you're required to carry homeowners insurance when you have a personal residence.

If I, as an investor, acquire a property subject to owner's existing financing, what about their homeowner's insurance? If something happens, would they really cover something that happened to "homeowner's investor's tenant"?

How do you go about properly handling insurance in sub2s?

Thank you all for your replies, they have been very helpful.

I will be very careful proceeding in this and first I'll see if the bank would even take the lowball 200k offer. If they do, first thing I do will be to consult with a local attorney regarding the legalities of this.

1) On the subject of taxes - I'm well aware of taxes and I didn't count them into any equations for the sake of simplicity :)

2) I put my credit on the risk. My mentor puts the following on the risk: downpayment, rehab money, and holding costs.

3) Over the years I've gotten a lot of advice from my mentor and whenever I didn't follow it I ended up hurting. I truly believe he has my best interest in heart as this person has put more faith in me than my own father. He also has achieved financial independence, and if there's anything I learned - instead of focusing on why you can't do something, focus on figuring out how can you.

Thank you all so much!!!

1) Grossreal: if I look at my core values, I do not see any fraud at all, even in case of me straight out giving money straight back to Yeow who owns the place and negotiated the seller.

The whole bank philosophy of "we're willing to take a loss, as long as THAT guy doesn't make a gain" is horrible. I have much more moral objective to that.

2) NC Mark, any references in WA? I've emailed a few lawyers saying how much will you charge for an hour conference - none respond. I better get more references from my REIA

3) Rich Weese can you make your post more helpful by explaining why I should run?

So I talked to my mentor and explained that I will not risk my credit while having another person in the title who can prevent sale of the place.

He agreed to do it with having only me on the title. So, this is the "cash flow map".

BEFORE:
- Mentor makes a loan to Yeow to flip a property.
- Yeow buys property and market turns south - he's still paying for it but won't be able to do so for long.

NOW:
- I make an offer to Yeow to purchase property for $200k
- Yeow negotiates with bank for a short sale and gets it approved
- I get the loan in my name and pay off the bank
- I rehab the property and sell it, say for $320k - $20k rehab, so I have $100k gain
- I give $90k (minus taxes and whatever else) to my mentor and keep $10k to myself

So, is the only fraudulant thing about this, is my knowledge that Yeow owes money to my mentor? I've never met Yeow until this.

If I did not have such knowledge, there would be nothing fraudelent about this on my part?

yep, thank you for advice. I'll let you know how this turns out :)

The loan is in my name and my credit.

The only drawback I see in this is this scenario:
- Place is purchased, rehabbed, and we put it up for sale.
- Time goes by and the place doesn't sell. My mentor's people stop putting money in our "mortgage payment" account and I'm stuck with the bill
- I decide I don't want to wait for the place to sell for $350k and want to sell it ASAP as not to make payments, for $300k
- My mentor's person doesn't agree and I'm stuck paying the bill and I can't sell the place...

This sounds horrible.. One of first rules I learned is you want to be the one controlling the situation. Not the other way around. I'm gonna tell my mentor I'm not gonna agree ot this if there's another person placed on the title.

From a "moral" standpoint I know the seller will not benefit, since whatever money is made besides my "10% commission" will go to repay his debts to my mentor (who used to be HML).

The person being added to the title is also my mentor's person. I guess he's doing it for his own protection from me?

Still, can you recommend good resource to learn about adding someone to the title and how it works and what it means?

I'm interested in purhcasing a primary residence and I found an interesting deal:

http://www.redfin.com/WA/Kent/30616-152nd-Ave-SE-98042/home/380566

Lowest comps are easily $200k and bank's asking $90k.

The only way I would have this place as primary residence is if it's rehabbed and a garage is added. If that falls under $40k, I would gladly do it if I can get it financed.

I know I can get FHA 203k loan to finance the rehab, but what about building the garage? Is there any way I can get that financed into the mortgage? Or perhaps other creative ways?

If I come out with this place all done for $130k I think it'll be a great deal.

So I spoke to my mentor and this is what he told me.

First, Yeow (current owner/seller) will not (directly) benefit from this whole thing.

He said when the bank accepts the offer and I buy the place, we will add another person to the title (as a control measure against me, apparently?), and once the place is re-sold, the profit will be split between me and the person in the title.

Where can I learn more about "adding someone to a title"?

Is there anything illegal in the fact that seller's listing agent will not disclose to the bank that there were higher offers offers on the property than mine? If the agent doesn't owe fidicuary responsibility to the bank, I don't see the reason for that to be illegal.