All Forum Posts by: Giovanni Cortorreal

Hi guys-

In my transactions I have the buyers paying all the closing cost.

As you know, to arrive at the acquisition price we subtract the repairs and the assignment fees from 70% of the ARV.

But how about the closing and holding cost how are those cost handled? Do we act like those expenses don’t exist? They are part of the end buyer’s cost you know.

But the problem is that if I keep reducing that already reduced price, there is not going to be much left to acquire the property.

How do you guys handle those additional expenses?

Thanks guys, for your invaluable assistance, it is greatly appreciated. Update: I did eventually found a title company that said they will close HUD transactions, but only using the LLC method. This would involve selling an LLC that has the right to buy the property, not selling the property its self. LoL: just a play on words, the end result is the same.

Thanks
Gio

Hello Folks,

I was talking to an "investor friendly" title company who informed me that HUD, Fannie & Freddy do not allow their foreclosed properties to be wholesaled; specifically mentioned was the use of the double closing strategy. They also mentioned some affidavit that has to be filled out at closing which prevents the buyer (flippers) from wholesaling these properties.

Has anyone ever heard of such restrictions?

Thanks in advance for your courteous answers.

Gio

Thanks for all your comments guys, I really appreciate them.

As a Realtor, here is what I’m planning to do to assist my clients who do not have credit, yet they have a good chunk of the money needed to purchase a home.

1. The seller creates a Trust and deeds the property to the Trust.

2. The seller signs a Trust agreement with the buyer and lets the lender know that such agreement has been made - the buyer is now the trustee; allowing the buyer, once equitable interest is obtained, via step 3, to purchase home owners insurance in his own name, without alerting the lender that a transfer of ownership has occurred and triggering the "Do on Sale" clause.

3. Use a Land Contract with a 5 year balloon payment to establish the terms of the sale. This agreement will be forward to the loan servicing company.

4. I get paid by having a buyer agency agreement with the buyer.

Does anyone of you guys/ gals see any problem with this?

If you do, please let me know. I’m trying to get a good understanding of the use of these instruments so don’t be afraid to post your comments, positive or negative, you won’t hurt my feelings.

Thanks for all your help; I look forward for your responses.

Thanks guys I appreciate you taking the time to provide your opinions.

Matt,

I intend to fix and flip. I think your suggestion is the right thing to do, but if there is another way that this can be done so that my offers look as strong as the other guy’s I certainly would like to consider it. Notice I said consider it, I’m not looking to expose myself to a liability.

Scott,

I looked at the Georgia Association form and I don’t see where the “special stipulation” field is located. Also, if you say no financial contingency, then what happens if after I get the property under contract and present it to my investors they start back-stepping, am I going to be sued for specific performance? I am a Realtor like yourself, and I know that you have done plenty of these so I’m not questioning your knowledge; I’m questioning my understanding.

It is my understanding that real estate purchases using private money lenders are made as cash offers. However, when the offer is for a bank REO the bank want a proof of funds letter that shows that the person making the offer has the money in an account under his/her name showing that the funding is in place.
The problem is that the private lender is not releasing the funds to me so that I may place it in my account prior to making the offer. The funds will not be release until a wire transfer is requested by the closing agent.
In my research I also read that the potential private lenders information are kept in your database and presented the investment opportunity only after the distress property is placed under contract.

Can anyone out there explain the process and let me know if I’m mistaken in my understanding? I am still trying to understand how it all works so don’t afraid to correct my understanding.

Thanks for all your help; I look forward for your responses.

I too like, Moe spent hours trying to research this loan guru, Bob from Aegis Real Estate Partners and could not find anything on him. According to the Short Sale Kid he has done over a billion dollar in loans but without a trace. I stop searching after a caught a virus and spent the rest of the day removing it from my computer, TG that’s over-with, Ryan I’ll be in-touch.