All Forum Posts by: Robert Alexis

Newbie investor looking for advice. Purchased a foreclosed property with $549k and 10% down through a hard money loan for an initial fix and flip. With the current market, I'm considering changing my exit strategy and refinancing after the rehab is complete so I can live in one unit and rent out the rest of the home. ARV is about 860,000 and I'll have to pay the HML 644k to cover the remaining loan plus rehab costs that they're covering.

Will I be able to refinance so I can pay off the HML and switch to a conventional mortgage? If so, how does this work and how much should I expect to spend?

Newbie investor looking for advice. Purchased a foreclosed property with $549k and 10% down through a hard money loan for an initial fix and flip. With the current market, I'm considering changing my exit strategy and refinancing after the rehab is complete so I can live in one unit and rent out the rest of the home. ARV is about 860,000 and I'll have to pay the HML 644k to cover the remaining loan plus rehab costs that they're covering.

Will I be able to refinance so I can pay off the HML and switch to a conventional mortgage? If so, how does this work and how much should I expect to spend?

Thank you for your responses!

After rereading the contract, the seller acceptance date was 6 days ago, not 9, and the 2nd day after their acceptance I did in fact walk through the property myself and take pictures of ceiling damage, roof damage, and other issues. Does that give my case anymore merit?

Thank you Greg, JD, and Caroline, your words have given me hope! 

I’ll be submitting the written notice, with or without the help of my attorney, to the seller’s attorney with pictures of the roof and ceiling damage that I did in fact take within the 5 day window and can prove so if this goes to court. Furthermore, after rereading the contract further I’ve realised the offer date and seller acceptance date IN the contract is dated 6 days ago, not 9 days ago as I previously mentioned, which was when the original offer was accepted. This means my window to provide written notice and secure inspection is more defensible.

I will not be going down without a fight!

I placed an offer on a bank owned foreclosure that was accepted 9 days ago and am currently under a fully executed contract. We discovered a leak in the roof that will significantly increase rehab cost, making my HM Loan monthly payment too high to proceed.

I found wording in the contract that may allow me to walk away from the deal while keeping my 25k earnest money, but my attorney isn’t confident.

The inspection contingency states the “purchaser may inspect OR secure an inspection report of the property 5 days from the seller acceptance date”. Then the purchaser has 10 days from the acceptance date or 3 days from receiving an inspection report (whichever happens sooner) to provide written notice of disapproved items, after which, seller may request a copy of inspection reports supporting the claim of disapproved items . Then seller can decide to repair, reduce purchase price, or terminate agreement.

My question is, if I have my lawyer submit a written notice tomorrow (on the 10 day deadline) claiming that I as the purchase inspected the property within the 5 day requirement from the acceptance date, can I then use an official inspection report that was provided on the 10th day as my supporting evidence, even though the “official” inspection took place after the 5 day deadline?

I’m otherwise at risk of losing 25k earnest deposit

I placed an offer on a bank owned foreclosure that was accepted 9 days ago and am currently under a fully executed contract. We discovered a leak in the roof that will significantly increase rehab cost, making my HM Loan monthly payment too high to proceed.

I found wording in the contract that may allow me to walk away from the deal while keeping my 25k earnest money, but my attorney isn’t confident.

The inspection contingency states the “purchaser may inspect OR secure an inspection report of the property 5 days from the seller acceptance date”. Then the purchaser has 10 days from the acceptance date or 3 days from receiving an inspection report (whichever happens sooner) to provide written notice of disapproved items, after which, seller may request a copy of inspection reports supporting the claim of disapproved items . Then seller can decide to repair, reduce purchase price, or terminate agreement.

My question is, if I have my lawyer submit a written notice tomorrow (on the 10 day deadline) claiming that I as the purchase inspected the property within the 5 day requirement from the acceptance date, can I then use an official inspection report that was provided on the 10th day as my supporting evidence, even though the “official” inspection took place after the 5 day deadline?

I’m otherwise at risk of losing 25k earnest deposit

I placed an offer on a bank owned foreclosure that was accepted 9 days ago and am currently under a fully executed contract. We discovered a leak in the roof that will significantly increase rehab cost, making my HM Loan monthly payment too high to proceed. 

 I found wording in the contract that may allow me to walk away from the deal while keeping my 25k earnest money, but my attorney isn’t confident.

The inspection contingency states the “purchaser may inspect OR secure an inspection report of the property 5 days from the seller acceptance date”. Then the purchaser has 10 days from the acceptance date or 3 days from receiving an inspection report (whichever happens sooner) to provide written notice of disapproved items, after which, seller may request a copy of inspection reports supporting the claim of disapproved items . Then seller can decide to repair, reduce purchase price, or terminate agreement. 

My question is, if I have my lawyer submit a written notice tomorrow (on the 10 day deadline) claiming that I as the purchase inspected the property within the 5 day requirement from the acceptance date, can I then use an official inspection report that was provided on the 10th day as my supporting evidence,  even though the “official” inspection took place after the 5 day deadline?

I’m otherwise at risk of losing 25k earnest deposit