All Forum Posts by: Tim Ivory

Same thing. I assume I can sign up for one month for $39, sale the property, then, cancel, right? I don't want to be locked in a yearly contract.

I was hoping for some insight on the as is value of a home. Say the house has a potential ARV of 450K, but needs 50k repairs. Is the As-Is value of the home 400K? What if the house has mold or something, could it be still be listed on the MLS, and if not, wouldn't that mean the AS-IS value isn't 400K then? I guess more simply, is the as-is value the value it would sell on the mls?

I know I could wholesale the house for 300Kish, so would the AS-IS value be that amount? Are there multiple-as is value's then?

Once I have an As-Is value, I'd like to consider renovation tiers levels. Say the house needs, paints, new carpets, and some patches of drywall, but I only have funds to renovate the patches of drywall replacement. Say the house is worth 300K as-is, after patching the drywall only, about 40 square feet, how much would the as-is value jump by? I'd assume about 2K to fix this issue, but, the house looks terrible with the huge gaps of drywall, so fixing that is the top priority to sell, since it would have the biggest impact on the property from an aesthetic viewpoint. Paint is decent, carpets are barely tolerable. 

Essentially, assuming 300K as is value

1. How much would the property be worth only fixing mold and drywall?

2. How much would the property be worth then with new carpets?

3. Assuming All work is done, the house should sell for 450k

Is there anyway to determine how much more the house will go up in value, by doing so and so work that needs to be done, not talking about upgrade.

I only have about 9K of funds to work on this HML of 60k, so if this loan doesn't work out, I'm not sure I'd be able to find someone else willing to disburse the payments beforehand, and not reimbursed afterwards, especially considering if any require a 10% downpayment fee and at least 6 months interest payments in reserve. That leaves me precious little wiggle room, hence my extra caution on even a 1% chance of losing 1200. It'll push me back a month.

I'd really hate having to wholesale my parents house on this one, what a waste of a good opportunity to gain some experience, not to mention the 100K+ I'd be missing out in additional profits but that is my backup plan.

The lender seems like a very respectable member of the real estate community down there in Atlanta, holding positions in various groups, and he is also the owner of project management company with no less than a dozen employees, with contact and phone numbers for each, on a legit site, and he went out of his way to help me on an unrelated issue a couple years ago. I'd be shocked its a scam, however, after hearing your guys advice, and the amazing nature of the deal (+ being unsecured), I can't be too careful, so doing my upmost DD on this one.

This is a strange case I find myself in. Wish my first loan and deal was an easier decision, ughh. I hope it isn't always this hard.

Thanks for all your guys input. I highly value it and rely on the community here very much before I make any decisions, lol.

Can't thank you guys enough :)

@David Garner Excellent points, I'm hesitant to expand here so I sent you a pm. I hope that is okay.

Cheers

Uggh, this is not what I want to hear, but I cannot ignore your guys advice. Yes, he is asking a wire transfer in advance as a commitment fee.

@David Garner Sounds like it would be prudent to run the risk of sounding ungrateful by asking him to allow escrow (see post above). If he was okay with that, would that quite your concern?

He gave me a lot of advice in a phone call a few years ago, and I kinda feel he is going out of his way to help me a bit here with the loan. Kind of see him a like a potential mentor.

Has anyone here ever paid upfront on a loan commitment fee, ever? Did it work, were you scammed? Could really use others experience at this point.

I trust this guy. I would be mind blown if it was a scam. I will send an email asking if I can use an escrow until closing, or even bring the funds with me and close in person.

If I had a couple more thousand, I wouldn't hesitate to wire transfer, but because every bit of money I have is so important at this point, I can't take even a 1% risk.

Does this sound reasonable to you guys?

Cheers

If enough people tell me to be wary on this, I will ask if I can use an escrow on this.

Apologies, it is 5%. Even before I asked, he gave me five reasons, not sure if I can share them here though.

I am rehabbing my parents property as my first rehab project. 180K is left on mortgage and 45K in renovation costs with an ARV of 450K. I am applying for a renovation loan only for 60K.

I found a lender (1stcapitallending) who would would give me 7% interest over six months, total cost of loan is 2100 funding 100% of the Loan with no downpayment. This is great, but there is a loan commitment fee of $1200 that I wasn't expecting so I'm doing my due diligence. 

Does anyone have experience with 1stcapitallending? How common are upfront loan commitment fees?