All Forum Posts by: Angelo Russo

What State are you in? It would need to be state specific. Things you want in there:
- no work is to be done unless in writing. (this avoids him sweeping the common areas while you are doing an eviction and it would cancel it)
- waiver of mechanic lien and that he was paid in full
- and you don't want him as sub, just 1099 employee. Sub would imply he could be covered under your workers comp or business insurance.

yes, it is a pain to do this everytime, but it will avoid problems later.

HELOC is just a second mortgage, but if you are refinancing the first out, you can get traditional financing if you want, or a HELOC. be careful of prepayment penalties and depending on the timeline, the appraised value might be limited to what you paid, not true value. (over 1 year is almost never an issue)

Joseph,
the one year is what is called a safe haven. live in it for a year, and they will not have a problem. If you do not meet the safe harbor, it's provable intent. My brother bought a house from Fannie Mae and fixed it up quite a bit. he was moving in with his girlfriend. She was in for a month and right when he was moving in they broke up. So he didn't want to live there any more and so he rented it out. As his INTENTION was truly (and somewhat provable) to live in the place at the time of signing he was OK.

Coincidently, live in it for 2 of the last 5 years and you do not have to claim capital gains on the property :) So live in it for two years, then rent for three and no tax on the uptake :) Just keep moving and you can save a lot on taxes.

I like deals too, but greatly appreciate the hello.

Thank you Jon. I'm looking forward to being able to share my experience.

Morning Everyone,
I'm a real estate/business attorney in the Cleveland Ohio area. I've been in real estate ever since I could pass a hammer to my father. I've been a landlord, hard money lender, flipper, rehabber, consultant, attorney, just about everything except a realtor (which I act as counsel for).

I have some single family homes right now, and a couple smaller apartment buildings (I used to have a 72 suiter). I am looking for some good deals right now and to share my knowledge with the community.

I love putting together a good deal for people. Finding the creative way to get a win win situation for everyone involved. I am also good at explaing the deal and getting everyone on board. I just had an investor close his first deal and the attorney for the estate was going to kill it because he thought it was a scam. I explained it, showed my credentials and it closed within 7 days. I love that I can help and be a part of that.

If any one has questions, feel free to ask.

I am assuming that you own all the houses, if not, see below.

Put an exception on the contract. If you have a list of cash investors, they generally close quickly. Tell the realtor, we will sign a contract for all, but if you get a signed agreement on your own in the first 30 days, then they get a nominal fee or nothing, for that house that sells. Because you have a large listing, they will be fine with it. OR, they just won't do anything until the 30 days is up. Either way you are doing well: If it sells, you did without him 2) the realtor can start marketing and preparing when your time is up and you can sell quicker.

If you do not own them, the realtor can not put the listing on the MLS. an option does not convey the ability of marketing according to Realtor Board Rules (at least not in this area). The options/assignments or contracts have to be specifically written so the Realtor is not in violation of their MLS agreement. Find a local attorney to put the correct clauses in your contracts. An ounce of prevention ...

Good luck

Antoinette,
You need to know the expenses to determine the true rate of return. (maintenance, insurance, taxes, utilities, carrying costs, vacancy rate, plus more)

There is always a way to get a deal done if you have a motivated seller, but find out why. most importantly, check nearby rentals and see if the rental rate is in line with what your place is charging. I have seen this: you can have the first two months off of rent, but pay a higher monthly rate in rent. The place looks better then it is and you get screwed. Trust no one and do your own investigation.

Good luck.

It really depends on your time line and your free time. If you have the time, do it yourself (with some help from a realtor). If you are working or do not want to wait 6 months for a great deal, find a good realtor and let them take the lead.

First step would be to get your financing in order and proof of down payment. Then scope out the areas in Southern CA that you like. Find a realtor in that area and be specific.

Why reinvent the wheel? let the realtor do the digging and just be sure to be faithful to them and if you go into an open house tell the agent there you are represented. It helps the realtor later.

Good luck

Refinance can be 2-3 points, depending.

I would find a local credit union. They usually keep loans in their portfolio and not subject to a lot of other guidelines. especially with that much equity, they are more inclined. However, you also have to look at the bank's perspective. Right now they want depositors, not loans. Bring your banking to them and explain you are moving there. That will make them more inclined.

Also, ask them if they would prefer you put less down and deposit rest in CD with them for "reserves" Should make it easier for the loan and you will develope a good relationship with a local bank.

As for the other part of your question, find a local realtor. It is not costing you any additional funds to go with a realtor. Plus, REOs in the $400k sit for quite some time, so I think you have a good shot at it.

The guy has a terrible realtor. Yes the 20k comes right out of his bottom line, but any good realtor would base it on the true sale price. The other reason he might not be taking it is if there is any capital gains involved. Probably not, but small chance.

You are preapproved and have 20% down, he should thank his stars you are even offering.