All Forum Posts by: Remi Oguntoye

Originally posted by @Justin Hammond:

@Remi Oguntoye if you are trying to tie it up for whatever reason, just have the seller sign a typical REPC with a clause that says seller will not have to bring money to closing, and will also not receive any money at closing.

You’ll have to draft a new contract if the lender approves a short payoff, but it will at least protect your position with the seller for the time being

Thank you. That sounds like good advice. Should I enter the purchase amount that I’m planning to offer the bank, or does the amount not really matter on the contract because the bank has the prerogative to accept any price they see fit?

Thanks for your responses @Account Closed!

I still plan to reach out to the lenders to get familiarity with the short sale process. I understand that the seller would need to initiate the convo, or communicate with the lender that I am authorized to ask questions. If I am able to get them to agree to short sale due to her unique situation, what type of contract would I need to have the seller sign to lock the property up? A standard purchase and sale contract? Is there a separate short sale agreement? Should I have the seller sign a purchase option contract instead, and say that the contract is subject to the bank allowing the short sale? 

I gather from your comments that it's unlikely that the lender will approve currently, so this is more likely an educational endeavor. However, I want some assurance that the seller will actually sell the property to me, if the lender approves, as I would have to spend some time on pursuing this.

Hey Folks,

I am a new wholesaler with a lead on a condo in Lithonia, Georgia. I have a few questions for the group, but I will give a little background first.

The condo is in fair condition in an area that doesn't have too much activity. The rents range from 7-900/mo. There are no comps that have sold since November. Even still, none of the comps appear to have been fully renovated, as such, I can't get an accurate estimate of what the condo would be worth if sold to a buy and hold investor/end user. Closed condo sales prices, per the CRM I have range from $41.5k - $70.5k, with an average sales price of $51.8k. There were 11 properties included in the CMA that have sales dates ranging from April- November 2018.

There are two mortgages on the condo totaling about $74k. However, the condo is definitely underwater by around $30k. 

Interest rates are relatively low (3% on the first mortgage and 4% in the second mortgage). The condo has an estimated repair cost of $10-12k.

The owner is current on mortgage, however, she recently had some health issues pop up, which make her motivated. I would like to approach the lenders about a short sale opportunity, in light of her situation. My questions are as follows:

-The condo is located in Georgia, the lenders are located in Florida and Texas, and I live in New York. Are there any considerations that I should keep in mind with respect to this?

-What is the likelihood of getting the lenders to approve a short sale- considering she is current on mortgages?

-What conditions should I add to my standard purchase and sales contract to account for the variability as to whether the lender will or won't accept my short sale request?

-Is there a contract that I should use specific to short sales, instead?

-I am considering buying the condo in my IRA, as the cash flow on the condo would be strong, assuming I can get it at the price that it's worth to me. If the process takes 6 months, and I end up buying something else in my IRA in the meantime, can I change the buyer to another investor, or would that nullify the short sale agreement?

What pitfalls should I try to avoid, with respect to pursuing my first short sale transaction? Is there anything I should definitely consider?

Any advice you folks can offer will be greatly appreciated!

Best,

Remi

Hey Guys. I am eagerly trying to get my first wholesale transaction closed. I have a lead on a condo in Lithonia, GA. The seller, on the surface seems motivated, as there are some health issues that have recently popped up. The owner has total mortgages of around $75k, and that was the preliminary number the listing agent threw out. The listing agent is her father, but he doesn't have time to market the property currently. They plan to ask relatives if they would rent the place for a while so that the owner doesn't have to float two mortgages.

I can't get a great ARV estimate on the condo, as there haven't been any closed sales since November 2018 in the immediate area. The area isn't particularly active, but rents could be as much as $900/mo, once the property is rehabbed.
  I had a realtor run a CMA on the condo, and high, average and low sales prices were $71k, 52k, and $42k, respectively. I will operate under the assumption that the ARV is the average ($52k), and work from there. I have another call with the listing agent tomorrow, to see what repairs the condo will need to be rented out, and provide them with an offer to buy their house (even though it'll be lower than they want).
My question to you all, in the meantime, is do I have a deal possible? I will make an offer at the value I need it to be to work, but I wonder if I shouldn't try proposing a Short Sale, considering the length of time it takes to get these things approved generally. Any advice/thoughts are greatly appreciated! Best, Remi

Originally posted by @George Blower:

@Remi Oguntoye

Try IRA Services Trust Company as they service all 50 states. There are no self-directed IRA custodians in NY.

 Thanks!

Originally posted by @Bernard Reisz:

@Remi Oguntoye Welcome to NYC!

@Daniel Hyman amazed that you're able to get on BP to help investors during tax season - while you're so busy keeping investors IRS compliant and saving them $$$.

Thanks, Bernard. How should we move forward with getting the account set up? Should I schedule a call? should I fill out forms on your site?

Originally posted by @Daniel Hyman:

Reach out to @Bernard Reisz

 Thank you!

Originally posted by @Patrick M Nichols:

@Remi Oguntoye, can you explain more about what you are trying to do? You say that you don't want to expand your operations. So, why are you trying to register in New York? Are you trying to re-form your entity as a NY LLC or just file your NC LLC as a foreign entity in NY?

Patrick, 

I want to reform the entity as a NY LLC.

Hi BP,

I would like to convert an existing 401k from a previous employer to a self-directed IRA. Does anyone have a recommendation for a custodian uptown?-- I would love to use a referral rather than going in based on a simple google search.

Hi BP,

I am going through the motions of registering my existing North Carolina llc in New York. I don't want to "expand operations", but the State Dept makes it unclear as to whether there is an option for simply transferring the filing from state to state. Additionally, do I have to publish this in newspapers as one has to for newly formed entities? Anyone with experience in these areas, please advise. Thanks in advance!