All Forum Posts by: Luis NA

I disagree with some here. Many people has different goals. There might be investors who want to hold for many years. I am working on creating a syndication and I will have the option where investors can extend their investment 5 to 10 years. I will structure my deals to have a clause where investors want to hold for a longer period.

Quote from @Eric M.:

I agree with Jon in principal.  But it is hard to get 100% of the equity.  

The big problem I have run into is when I am "partners" with someone with zero money at risk in a project, it rarely turns out great for me.

 Erik but that depends. I am loiking for a partner for multiunit prop. I will do all the heavy listing. In site managment/maintanance/rehab. Will make sure the property is profitable and stay stable for years to come. Equity is splitted but if property is ever sold yoy get downpayment back + equity

If they are charging $3k in front is a big red flag. If they are looking for get lot of flippers and make money funding deals they should not charge $3k, it is simple. This is the reason they have lot of complaints, check the BBB and you will see lot of complaints there. Me personally will never do deals with them. There are others 100% hard money lenders out there without this ridiculous front fee that by the way is not refundable after some period of time.  SO AGAIN DO NOT FALL WITH THIS FISHY BUSINESS

Ok understood. I have seem many investors saying that sellers pay for down payment using repair allowance or seller credit, I just want to know how they can do this without breaking the law. Some of them stated that some lenders accept this as long as it is a good deal so I guest it is legal as long as it is disclose. 

Yes, that is correct, he sell it for $80k, no disputing that but on paper the resale will be registered for 100k. I also I can get a cash back for 20K from the loan to make improvements, also cover closing cost. and you are correct, only lenders can accept it or not but again, I just wanted it to hear the legally part about it and I guest it is since lot of people are doing it. 

Hi Raymond,
But who define the maximum amount? I have seen people getting cash back for even 20%. Again, as long as is disclose I do not see any illegality about it. What do you think?

Ok but still we can not call it is illegal is the lender accept the deal. Also notice that some lenders have their own rules, specially hard lender money.

I read all over the internet and as of today I can not get an answer for this. There should be a law somewhere that must answer my question but can not find any. I will ask here: If someone is selling me a home for $100k and I ask for a $20k cash back to do whatever I want, from repair or any improvements and it is FULLY DISCLOSE on the closing sheet why some people argue that this is illegal  or fraud.  Notice we are not inflating the price, we are not asking the seller to increase its value, ALL WE ARE ASKING IS  FOR REPAIR ALLOWANCES and EVERYTHING WILL BE DISCLOSED TO THE LENDER and ALL PARTIES so please someone tell me why it may not be legal? I asked a real state lawyer and he stated to me that as long as it is disclose on the closing statement and all parties agree I can ask for repairs allowance and there is not a minimum or maximum.  I need to hear from you guys what you think..