All Forum Posts by: Jonathan Berridge

Hey Guys so we've finally found a property that works for us, put in a offer & got the accepted offer. Since then we've put the home into contract and paid the earnest money to the seller. Ive been dealing with a HML to fund the remaining balance on the property & cover less than half of the renovation costs. We are at the end of the road on this deal and are supposed to be closing this FRIDAY! Anyways, one of the HML requirements was that we formed an LLC as they rather do B2B lending, so we did all that and have received all the documents that the LLC has been formed. This all took place AFTER the contracts and other documents have been drawn up, so the original purchase agreement shows just the buyers names and nothing with the LLC. Our attorney is giving us a hard time about this and made the statement that it "cant" be done. Her reasoning for this was that we haven't completed our publication requirements for NY state. Now I'm no attorney but after doing some quick web searches I cant find anything that states you cant purchase a property in a LLC name before you complete the publication requirements, they give you 120 days to do this and every thing I read says you can do pretty much anything you need the LLC to do as soon as you have all the filing receipts & formation paperwork. So I guess I say all that to say, Can you purchase a property in a NY LLC that has just been formed before completing the publication requirements & can anyone give me some advice on the best way to go about getting these documents changed like ASAP to satisfy the HML's requirement. Lastly, can someone point me in the right direction on a good template to use for a exit strategy? Planning on doing a refi and holding since its a income producing 4-family. Thanks BP!

@Aaron K. Thanks for your reply, so on paper yes they would be buying the property. I would be paying the entire mortgage and would be the one doing the actual renovation. Unfortunately my situation doesn't qualify for a mortgage on this deal so I need to go this route. Basically we are trying to find out the best way to leverage any of these assets to purchase the house. As I'm doing more research I see that maybe a HELOC may be a good option as well

Hey Guys, so Ive only posted a few times on here and everyone has been great with all types of info, hopefully this will be the home run for me. So after lots of dead ends I may have found a way out of this renting rat race. I have received permission from close family members to use a living trust to help leverage getting a mortgage. This trust includes 1 multi family home only generating about $3000 a month and a single family home thats just being occupied by one of the trustees. Both homes have NO mortgage on them and all property taxes up to date. The trust also includes an money market account with a far more in it then the house im looking into. So my question is, with all parties involved is it possible to leverage these assets to secure a mortgage for the new property? The new property is a 2 family that I would be occupying one unit in and the other to rent. I would really appreciate any feedback on what is required to make this happen. In total were talking about assets valued at over 2 million, however they would much rather I get a mortgage then for them to hold the note themselves. Oh and if this is all possible is it still possible to do a 203K? Id need an extra 60-70k to renovate.

Ok so let’s start with some background info, I’m a General Contractor living in Westchester NY, paying way too much money to live and looking to get out paying mortgage money in rent. Anyways I’ve found a property, legal 2 family that needs some work. Purchase price would be 345k, rehab another 60k so 405k total cost. Not only do I not want to deal with the restrictions on a regular 203k loan but I also wouldn’t qualify based on current credit score still damaged from being young & reckless. (510 FICO) total debt is only around 6k (I know, I know, I need to take care of it). So I guess I’m just trying to find out if it’s possible to still make something happen or if I’m dreaming. Assuming I could secure the loan, I do have access to 10% of the total cost ($40,500) & possibly slightly more to cover closing costs. Is it possible to get a hard money loan on this? I know those are short term but if I renovated and brought the value up could it be refinanced & then owner occupied in one of the units? Also home is currently been foreclosed, not sure if that makes a difference. I do have people close to me with great credit but they can’t prove a high enough income to qualify for conventional. Can anyone point me in the right direction here? thanks In advance, I’ve learned a lot so far from this forum.

Hey guys so Im new to the real estate game but not new to working on properties. Similar to alot of people on here Im sure, Im a contractor in westchester county, NY who figured I have a slight advantage to most by being able to handle pretty much all needed repairs within my company. Anyways Ive found a great deal on a multi family in my area in need of some repairs but nothing that we cant handle. A few problems with the deal giveen my circumstances are

A) I have access to minimal capital to invest in the deal (Max $25-30k I can get my hands on if needed)

B) Credit isnt exactly squeaky clean and anyone who has a significantly higher score than me doesnt have the income to back it up

C) Interested property has a broken water pipe making it a 203K or cash deal

D) Asking price is high for a starter investor with no collateral and mimimum "skin money" to invest (asking price $499k)

The comps in the area are going for anywheres from 700-850k so Im figuring even with some serious TLC which I estimate to be around 75k you can still make a serious profit on this. Id LOVE to be able to buy-renovate & hold on this since I know the area isnt going anywhere but up but Im not sure how id go about that. Im pretty sure everyone is going to reccomend using some PM but ive had no luck finding anyone to give it a shot. Any reccomedations would be greatly appreciated!

Not yet, Ive done tons of research, attended a few seminars, checked out a few auctions and even did some viewings with an agent. Biggest issue like most is funding and finding a solid deal in Westchester. The best thing going for me is owning my own contracting company so the work can be done at real costs.

Nice, at first I read the post and thought you found a multi family in Ardsley for 90k, that would have been a steal lol, I live right on the border of ardsley myself. How long did the whole process take from start to finish?