All Forum Posts by: Jeff Sanders

@Joseph R., he was just telling me to expect a punch list that had to be addressed before closing, which I wasn't expecting.  Guess I should have been.  Hopefully it won't be too bad.

By the way, my 2-10 Warranty ended up being a good bit less than anticipated.  Around $2400 including membership fee.  Happy about that!

Thanks @Todd Whiddon.  It's good to know none of this is way out of line.  I have already been in contact with 2-10 but thanks for the contact info. We are in the process of getting signed up with them as members now.  I have also found a GA company to manage the first year of warranty for me as I don't want to be directly involved in that.  Overall I think it will work out pretty well.  My GC is a guy who I have partnered with on this deal and he is also a licensed agent.  He ran the flip and I was the money guy.  Just signed the contact, hoping to close in early July.

Greetings,

I have a flip in Decatur, GA that was supposed to be a rehab but due to some city ordinance craziness and a long delay turned into a tear-down and new construction.  House is now done and beautiful and on the market but my agent is telling me that in order to sell I need to include:

1. a buyers walk-thru punch list repair at/near closing

2. warranty from me for the first year of ownership

3. a purchased "2-10" warranty for the house, which I'm told is about $5k

These are things I didn't know about and wasn't necessarily planning for since it was going to be a rehab.  Is this all true?  Would it make sense to "outsource" #2 above to a home warranty company to manage the first year?  Is $5k reasonable for the 2-10?  Any direction, advice or tips would be helpful.

Thanks

Jeff

Hi,

I am looking to meet with Hard Money Lenders in the Tampa, St. Pete, Clearwater area and I am having a difficult time finding any.  If you are, or know of one, please contact me and I can provide more details.

Thanks.

Jeff

Hey, I'm new to this but I'm curious how this would work. Wouldn't a HML want to be in first position on the property since they are basically only lending on it's value? Wouldn't this conflict with the bank obviously being in first position in this situation? I'm don't understand why a HML would be willing to put themselves in a position behind a bank. Maybe I am missing something.

Thanks.

Hey Joe,

Expenses included the inspection fee but that was speculative anyways. Paid to have a roll-off delivered early to avoid having sellers leave house full of junk. Made some first-timer mistakes but learned some valuable lessons for the next time.

Update:

The deal fell thru today because the bank had initiated foreclosure and the seller failed to mention this to anyone until $9500 of extra charges showed up on the HUD when we finally got it. The seller didn't have the money so they are just walking away from the house and letting it go to auction. Not enough profit in the deal to cover this on our side so we move on to the next.

Bummer.

Good tip Chris. This owner has been in the house for a really long time but it certainly would be worth a try next time.

Thanks.

Thanks J.

I have already reached out to my agent to get clarification on this and next time we will shop this around instead of just taking the suggested firm.

Live and learn.