All Forum Posts by: Nelson Del Castillo

I’m under contract to purchase a single family home in CT, I cancelled on the last day of the inspection due to issues with the foundation. The seller wants to keep my deposit and has not signed the cancellation. The deposit is being held by the listing agents brocker. in this scenario what is the best course of action? I’m assuming filing some type of memorandum of interest would be the best approach? Any help would be appreciated. 

Is this a deal? I am looking at a new construction project. The lot currently has a 1500 sqft cape on it. The plan is to knock it down and put up 2 duplexes at 1500 sqft a piece. Purchase price for the lot with the house is 125k, each duplex will sell for 250k a piece. I normally do flips and buy at 70% minus repairs... What would be a good formula to use for new construction, 65% minus repairs? The project is in the north east in Connecticut. Any input or opinion from builders will be appreciated.

Quick question about what you would do in this

scenario.

Motivated seller calls and says they want 55k

For the house.. This number works for you and leaves enough for a 15% profit.

Would you give them what there asking for with out negotiations, offer a little less, or offer a lot less and try to get a killer deal?

After your response I will tell you my experience with this, and the lessons learned.

I have a 2 family house, the first floor unit along with the garage and basement lights, are all on one meter. Previously the first floor apartment was rented to college students so I would pay for all utilities... We are now renting the full apartment to one person.. How do you legally split the utility bills, which would be electric?  Are there any laws regarding this in Connecticut? My thought was that I would pay for 50% of the electricity and that the tenant would pay for 50 % of the electricity.. In the future, I suppose I can add another meter for the general house.

@Ed Matson rents ended up being $1100 per month cash., Section 8 says they’ll pay $1600 online but that’s checking off a bunch of stuff like washer dryer type of heating ect. We still ended up buying the property and it still cash flows pretty good. The repairs where more than I expected but it still turned out to be an ok deal.

@John Mocker thanks for the input, that’s is also something we could fall back on.

Quick update, I spoke with the tittle insurance company and they said that because the omitted party action had been filed they decided to insure the property with the lien. They also said that there was a good chance that the attorney who filed the Omitted action would continue on the process of removing the lien even after the closing, as it has already been started, unless of course the attorney handling it drops dead which in that case the title insurance company would step in. They also said that because the lien was suppose to be wiped out with the foreclosure process and was not because the party was not named, that it would be pretty easy to have it released , but that of course it would take time. Another thing he said could be done is negotiate with the lien holder to release the lien in exchange for a couple thousand dollars, being that if it goes to court they would loose any ways and get 0. He also mentioned that this type of thing happens all the time where the attorney handling the foreclosure misses a lien.

At this point I think we will probably move forward but, we will delay the closing as far out as possible unless the seller gives us a credit of a couple thousand dollars to cover the additional risk.

I’ve never had a bank owned property go smooth, it’s always one thing or the other,smh. But hey, at least it’s another lesson learned, you never stop learning in this business.

@Drew Leo purchase price is 74k, rehab 55k, expected retail price is 180k to 185k.

@David Martin it’s from midland funding group which I believe is a debt collection agency.

@Bob Prisco the we would make money if we had to pay the 9k lien off, but we would not make what we set out to make on Flip’s. I hate to walk away from deals but if reselling with this lien on there is an issue we might have to.