All Forum Posts by: Petr Anisimov

@Donnie N. based on the video:

1. They had a discounted price for participants of that webinar. I am not sure that it is a viable option now so $3,500 per person should be expected

2. There are two payment plans: $3,500 gets you a one year of their service during this time they help you with your credit score if it is low and apply for credit cards 3 to 4 times; 9% option is pay-as-you-go on funds received. It is another way to pay for their service for those that do not want to pay $3,500 upfront, F&G does not expect to get $100k on the first round so one would not pay $9k but still 9% is high and one should switch to a yearly service if the desire to continue

3. I do believe that one has to renew they service every year if they want more credit cards and if they need help with card stacking once initial promotion runs out

4. I do not believe that you have to pay for the newsletter

5. The main downside for me is that these are credit cards and if you want cash then one might have to pay % on cash advances. F&G solution to this is buying gold and selling it back. One might lose upto 2% on the spread based on F&G projection and bank might cancel the credit card if they suspect that you are trying to bypass their cash advance fee.

6. If your personal credit score is low then you can bring a partner to use his credit score. Unfortunately, only participants of the webinar were getting by one get one free. One should expect to pay $3,500 per person.

I am looking for more information from anybody that have actually done the program. I am planning to try this program myself to have money for to buy auctioned properties and rehab them.

In case you have not seen this. Clayton Morris has recorded the following webinar with Fund and Grow guys that could be access at https://www.fundandgrow.com/wrty/CYS534367 as well as at https://www.youtube.com/watch?v=YdLWAAzOjxg

I would be interested to hear about your experience @Justin Sheley

Thank you all for your advice. We decided to go ahead with the purchase on the current conditions that rent is not prorated.

Yes, we are getting security deposits from the seller credited to us.

We are paying the first mtg payment on the 1st and collecting the rent.

We are buying a property from a wholesaler in Albuquerque, New Mexico and the following issue has arisen. Is it normal that rent and mortgage payment does not get prorated at closing? The wholesaler says that it would be a wash.

1. We are buying a small multi unit property - 9 units in two buildings;

2. We are assuming the mortgages from a seller via a wrap loan;

3. Rent has been collected on the property and current mortgage payment has been already made by the seller;

4. Initial closing date was 29th of September. As it was postponed, we were expecting that rents and mortgage payment would be prorated at a new closing date.

Our issue now is that: we have been just informed that "since this is an investor to investor deal and we are paying on a wrap loan" nothing is going to be prorated at closing, that it would just be a wash.

It surprised us. As a result, we are losing 30% of the rent collected which leaves us with less cash to start investing in the property and with the need to come up with additional money to make mortgage payment on the 1st of November.

@David Torres Is it a normal procedure in the case that one is not obtaining a commercial loan? Shall we push back on this and how would we go about it?

Thank you for your input.

Hello and thank you for your advice.

I have walked away from the deal and will be studying the market more and looking for a better one

wow! @Joe Villeneuve that is so simple and true at the same time!

Here is the property I am purchasing in Santa Fe, New Mexico:

https://www.biggerpockets.com/calculators/shared/5...

The asking price was 340k contingent on inspection. I have already done 1. inspection, 2 sewer scoping. Quotes came in at 100k so I adjusted my offer to 240k where seller finances 210k of the deal. Now appraisal came in and this tri-plex has value of 275k based on her analysis.

It so happen that I have contacted the seller with 240k revised offer and I do not know his response yet. My wife wants me to work away but I still want the cash flow that I am projecting.

Please advise!

Here is a part of the letter, I sent to the seller:

The home inspection was completed on September 29th (please see attached) and the following issues were pointed out:

• 1.The wooden floor frame in the middle unit is deteriorating due to either prior water leak in the bathroom or due to moisture infiltration through the walls and foundation.
• 2.There is evidence of significant settlement under the middle unit bathroom and north closet.
• 3.The settlement of the floor and walls has also resulted in settlement of the roof frame above this area, ceiling shows cracks.
• 4.There is an obvious depression on the roof – water is ponding on the roof above the middle unit, which adds excessive weight on the roof and potential for leaks.
• 5.Asbestos containing material has been found.
• 6.The current bedroom heat installations in the north and south units pose a safety hazard from carbon monoxide, fire and oxygen depletion.
• 7.An electrician performing upgrades did not use ‘arc fault breakers’ in the north and south unit breaker panels, which is required by the national electrical code.
• 8.Upgrades to the electrical system, promised by a real estate agent, have not been completed yet. Major appliances are still connected to ungrounded outlets, some switches and outlets do not work, a kitchen breaker for the middle unit gets tripped for no apparent reason.
• 9.An electrician has also damaged exterior walls. There are openings in the upper west exterior walls where electrical conduit was removed.
• 10.The stucco in these areas has not been repaired to prevent moisture penetration and deterioration.
• 11.The front unit has issues flushing the toilet, which was confirmed with a tenant, so camera scoping of the drain pipes was performed that revealed damages and blockages in the pipes.
• 12.Deferred maintenance on multiple items: cracks around windows and pipes, gas pipes are not supported, pilot lights in heater units were not lit, a water heater unit has no ventilation.

I hired a plumber to scope the pipes (please see his report in the invoice attached and photos); a roofing company was hired to assess the damage to the roof above the middle unit only (please see proposed work sheet); a general contractor has inspected the settlement of the wall in the second unit due to the damaged frame. They all confirmed the issues noted in the home inspection report. Here are the costs to address the issues uncovered by these experts:

• 1.Wood floor and wall in the middle unit: $44,000 + tax + $2,800 for permit, but engineer report is needed for a formal quote.
• 2.Roof above the middle unit: $8,000 + tax + $800 for permit + ply wood;
• 3.Sewer line outside the building (see estimate): $7,365 total;
• 4.Sewer line inside the building (see estimate): $21,663 total;

The total cost plus 10% contingency is equal to $100,000 in repairs that I cannot afford to pay and still be able to fulfill my obligations to you and to the tenants that will have to be displaced for the duration of repairs.

In addition, the appraisal came in at $275,000 that is considerably below the $340,000 number.

Proposed solution:

• You will complete all the electrical repairs and ensure all three units are brought up to current code including the outlets.
• You will have the stucco repaired on the exterior that was damaged by the electrical proof.

I will purchase the property “as is” for $240,000 with $30,000 down. I will use the reduction in the down payment to take care of the immediate sewer issue. 

Hi and welcome to the site.

I should give a special thank you to all science teachers. I became a scientists because of their passion!

Petr

I do not remember the source but according to it: "There is a certain threshold below which it is not financially beneficial for banks to service the mortgages. This threshold is about 86k so anything below is very hard to get a conventional loan for."

Maybe someone with more experience can weigh in on this subject as I have not tried to finance anything at 50k range. I personally thinking about investing in a 100k range where returns are not as high but less headaches overall according to BP discussions.

@Marc C. thank you for bringing me back to my core mission of buy and hold. I would love to get coffee with you and talk about future prospects in the area! Let us plan some time!