All Forum Posts by: Angelo Russo

Unfortunately, common curtesy has disappeared. Typical lenders, even if they tell you they can do it, really cannot. I think they have a quota of applications to justify their job (joke).

I have had luck with some of my clients by sending them to small credit unions. There is one around here that gave a $50k line of credit based on credit score and stated income. YES, I know it's hard to believe, but it closed about 6 months ago. I would contact smaller credit unions, they are more friendly and by keeping their porfolio, more likely to do things others would not.

Good luck

Simple purchase agreement:
60 days due dilligence to examine the property
Property sold as-is where is
title to be free and clear of all encumbrances but current taxes
(are you prorating taxes, I assume not with that price)
Title insurance (if you go through a title company) has a minimum, make sure they give you the minimum coverage as it covers more and gives you discount if you sell 10 years later or finance out some cash.

email me and I'll send you a simple purchase agreement for this. It's a one pager. I don't like it for most deals, but I think it would fit in here perfectly.

Personally, I don't think you have enough built in there for unexpected (holding costs, bad floor boards, stolen plumbing, ...) I wish you luck.

Also, how do you know the ARV? Most people seem to be too aggressive, I would make sure on it.

I'm a little biased owning a title company, but as J. Scott said, it can save your bacon. One tip, most people will buy rather inexpensive houses and there is a minimum. Make sure the coverage is brought up to that minimum. ie, in ohio, the minimum title insurance price is $175. That covers a $30k property. So if you are buying something for less than 30k, be sure to ask for $30k of coverage.

One last tip, when you resell, be sure to ask for a reissue rate. There have been so many lawsuits against title companies for not giving it, that just mentioning it will probably get it for you. (In Ohio that is 20% off what you already paid)

Good luck, and always get the title insurance, it does come in handy, especially with all the foreclosures and short sales these days. People are not doing them right and foreclosed properties (even at sheriff sales) might get you stuck with a lien.

Wow, impressed with the level of answers. But to sum up.

General Warranty Deed, NOT Quick Claim Deed because you would break the title insurance which you already paid for. (more detailed explained in Financexaminer) (I own a title company, he is right)

YES, the bank can call the note as a violation of "due on sale" clause. it happens more than you think. Simple email to your LO, who has no idea what you are doing, will get confirmation you are OK. and it will help.

The question not answered, limits on what can go into your llc for write off, that's more of a CPA question, but from experience, here goes: no real limit. if it has to do with the house, you can write it off. This includes the mileage of driving to home depot for that spare key. (only if you went from the house and back to the house, if you went from home, it sometime does not count)

I agree, a fair assignment fee is 10-15%, so on $500k, fine, but on a $25k deal, might be a little crazy.

As for the followup question, keep someone from seeing it, (typical lawyer answer) all depends. If you are doing an assignment, buyer has to see it as they are buying the assignment. But if you really want to keep quiet (and it's a cash deal) close it twice. once with your own money (ways around that, but disclosures are involved) and then hour or two later, sell to other person. It will be on public record, but most people do not see it.

Lastly, there is one sure fire way to keep it all hidden, but you need a good lawyer :) Have the seller put the property into a newly formed LLC. The newly formed LLC will have a slightly elaborate operating agreement to allow for all to follow. But you buy the LLC from him and then end buyer buys from you. no public documents involved except transfer to LLC which was originally owned by seller so it's even excempt from Transfer/Conveyance tax :) (which is what you use to pay your attorney) This way has other benefits in that it CAN avoid point of sale with cities and get rid of required escrow deposits on others. BE WARNED, if this is not done right, you can really screw yourself up. You really need to make sure you understand this.

Now, why do I feel like I gave a loaded gun to a kid? If you are going to use this, email me, I'll help where I can.

Good luck :)

It was a pleasure working with you :) Congrats on your first deal done

Bryan,
I'm limited to 100 characters, and you even have a logo in yours. How did you get all that formatting and stuff done?

I've been changing it in "edit profiles" and "forum signature"

Am I in the right spot?

Just saying hello and testing my signature line. no way to preview unless I make a comment :) So feel free to comment on this to say hello, or just test your own signature file.

Also, if the down payment is a gift from a family member, they usually raise the amount to 4-5% required to close. The funds would need to be in their account and seasoned for 60-90 days before the amount is lowered to 3-5%.

Talk to your loan officer to know the ins and outs.