All Forum Posts by: Jack Forester

Squirrels in attic cost me $350 for a week of trapping (came by every day to check Traps), but then they will sell you the exclusion service, where the solve the problem (construction gap) by installing metal alont the roof to gutter line (plywood does not extend all the way down and there is about a 2" gap, sometime covered bg the shingles). This ran about $1800 for a 1000sqft house. 

@Wayne Brooks And they returned on 10/7 and winterized the house... If they would just mow the property, I would complain nearly as much. #safeguardproperties

@Melonie Dickson I just closed on a property that I *almost* did a no contingency offer, but at the last minute, I trusted my gut and added a 5 day due diligence. The night after the offer was accepted, the HOA sent an email saying, "Just checking to make sure this isn't going to be a rental, because we are at our max rental number now." What?? Yes, this was supposed to be a buy and hold. Imagine, if I had waived the due diligence. In the end, I now have another question to ask the seller up front. I performed an HOA audit, if you will, by counting all the absentee owner houses. They were 2 houses over their limit, so I had the HOA secretary double check. Turns out there were 3 family owned properties that did not qualify as a rental. The sellers got the HOA to send a letter approving my property as a rental, until I sold it, in which case it would transfer to the new owner, if they/I applied for transfer.

Shoot, how do I move this post. Sorry, wrong forum.

I bought a SFR on 9/10. I've had guys out to quote work. Today, the termite guy is at the house telling me the lockbox code is not working. I haven't given the code to anyone else, so I ask if he is sure he's at the right house. He sends me a photo of the house. It's the right house. He sends a photo of the lockbox. It's not mine! Turns out there is an "Attention!" sticker on the door warning not to turn on any breakers or water. The prior owner's mortgage company "secured the property", even though we closed a week ago. Working with Safeguard to get back into MY property. Has this happened to anyone here? Do I have any recourse for lost days of rehav/rent?

I know this is an old thread, but I ran across this page that list closing cost and loan origination percentages, based on the loan type:  https://fitsmallbusiness.com/multifamily-financing/

It is interesting how you hear about the "no money down" purchases.  Maybe @Brandon Turner could run through the real-life numbers (settlement statement) of his most recent multi-family purchase for all of the "extra" costs beyond the downpayment.   Maybe there is a post somewhere that walks through a real-life example.

@Andrew Postell, sorry for whatever reason, the mobile app on Android was not resolving your name tagging.  See above.

@Andrew Postell, is there anything that prevents me from my LLC loaning me the purchase price plus rehab costs at time of closing? Does the rehab money have to go into an escrow account?

My thinking is this:

Purchase Price: $100k

Rehab: $20k

Loan from LLC is $120k

ARV: $150k

80% Refi: $120k

I recoup 100% of my cash, assuming it appraises at $150k

If ARV is $125k

80% Refi is $100k, so I'm left with $20k in the property. 

If I had done all cash of $100k, then performed $20k in rehab with an ARV of $120k. Then I could refi cash out for the lesser of 75% ARV ($90k) or the original closing statement amount of $100k. So I get $90k and have $30k tied up in the house (assuming I can find a bank that will do this).

The LLC loan route with embedded rehab costs returns $10k more to my pocket. If the initial LLC loan to me can include rehab costs, must the rehab money be kept in an escrow account?

I've used an Estoppel Agreement when inheriting tenants. It basically asks the tenant what their rent is, what security deposit they have had withheld, the length of their lease, and any known issues with their unit. Then they sign it. We required it as part of the due diligence. You then compare that to what the landlord has provided. This way, if there is a dispute down the line over how much security deposit they should get back, you have the tenants signature.

I listened to 233, and it does mention using the Delayed Financing Exception; however is not the one I was thinking of, as she did not mention writing repairs into the settlement statement. It was definitely a more recent podcast.