All Forum Posts by: James McGovern

Quote from @Russell Brazil:

Are you offering them upfront fees?

 Uncertain of what you are thinking about when it comes to upfront fees? I am more than willing to pay for results. If they brought me a property at a kick *** price, sure I would compensate them. 

Don't want to sign any agreement where they could demand compensation on a property that they did not help me acquire.

Quote from @Bruce Woodruff:

@James McGovern Yeah, I agree with @Jay Hinrichs. Why don't you just find your own deals? Anyway, most Realtors will not have any 'secret' properties that you can't just find yourself ..

Realtors may know who is in distress that could turn into a deal which is information worth paying for.

The days of showing a property or doing work for a consumer with no written agreement are completely done. Youll need to adjust to the new reality. Have issues with it? Take it up with the Department of Justice and the Federal District Court of Western Missouri.

I gotta ask, that was a court settlement, not a law. This distinction is important 

Quote from @Russell Brazil:

and you arnt willing to enter a buyer/broker agreement to make sure they get paid when they close

Always willling to pay for value created. Sadly, many want the agreement in place BEFORE they have shown a property or did anything other than attempting to add me to an automated search.

Quote from @Chris Seveney:

@James McGovern

As a lender common sense for us is we do not give money to a property that doesn’t have clean title or insurance on it.

So, common sense would also suggest that method may limit your business in states where that form of logic doesn't work. No one wants to put your money at risk.

It is simply a matter of acknowleging that contractually title will be good to go at a named date in the future. This is how banks that give mortgages in Connecticut work.

On numerous occasions, clueless real estate agents want to put me on automation where they send me searches from the MLS. They seem to be focused on morphing this into a buyer/broker arrangement.

I continue to scratch my head wondering why they haven't figured out that I just might be more interested in off-market properties and that a buyer/broker agreement is unattractive because we need a ton of flexibility in how we purchase properties and don't want to be handcuffed.

Quote from @Bruce Lynn:

Quote from @James McGovern:

I no longer entertain buyers agents from Ca

There can be many bad players in any transaction.  Agents, buyer/seller, insurance agents, attorneys, title companies, inspectors, lenders, mom & dad, relatives and so many others.  .

Any suggestions on what I can include on the MLS in the agent notes section to get painful agents to not be so painful? Don't want to have to burn time trying to figure this out as part of a transaction.

In a light cosmetic flip, what are the advantages of purchasing builders risk insurance over using a traditional homeowners insurance policy? 

Quote from @Boris Grinberg:

Hi James, 

Your best bet is to search Google or BiggerPockets for hard money lenders in your area.

However, you can also contact private money lenders directly and shop around for the best price yourself. 

Sadly, many hard money lenders have hijacked the private money lender keywords so they are much more challenging to identify via google. Biggerpockets doesn't really allow you to search efficiently for them either.

I recently purchased a property acquired via foreclosure auction and wanted to use a Hard Money lender. I found that many lenders create a which comes first chicken or egg challenge. 

In the State of Connecticut, the court does not guarantee title until you close on the property. Many lenders want a clean title prior to handing over money for closing. Likewise, you often cannot purchase insurance on property that you do not own which causes closing attorneys to purchase insurance on the day of close. Many lenders want to see insurance in place as part of their "underwriting"

Are all hard money lenders participating in this chicken vs egg challenge or are there some that use common sense and have adjusted their practices to accommodate the various laws throughout the nation?