All Forum Posts by: Ryan Murdock

House hacked a duplex. Looking back I never should have bought that property but it was a tremendous education so that's worth something. Took about 10 years but it's finally cash flowing to the positive side :-)

So your investor is offering you a private loan at 12% annually (I think), not 12% of the profit. He wants to know if you will continue paying him 12% indefinitely even if you can't refi. Your answer likely should be "yes" but I'd run the numbers again and see just how sustainable the project is with a 12% loan or multiple years OR be extremely confident you will be able to refi sooner to a lower rate. 

All depends on how the contract reads. If there really are no contingencies at best you'll lose your EMD at worst it's really crazy and the seller chases you down for non-performance.

I'm assuming it's a cash deal so there's no financing contingency? At that point I'd either eat my EMD and chalk it up as a paid education and/or pray for a title defect that can't be cured anytime soon...

@Brett Spence

Kurt Kelly at Mobile Agency and Dan Greenfelder Insurance Services. I use and have been provided great service by both of them.

I dabble around a bit....

@Charlotte M. Varble If you are going to continue at any sort of scale you'll eventually end up in the commercial lending arena. There are some down sides and additional expenses when dealing with commercial lending but the upside is there are generally no seasoning requirements so you have much quicker access to the equity. More than once I have gone straight from the closing table to the bank to initiate a refi that same day.

For now you're probably better off waiting out the 6 months and taking advantage of the better terms you're getting but at some point you will start buying properties using your LLC and embrace the world of commercial loans.

Don't do it. 

@Alex Smith Great job!! I had a single family BRRRR tenant buy one of my houses last year. You get to collect rent right up until the day of closing then you walk away with a big check! Boom! Time to repeat!

Typically anyone named on the deed should sign. Your example above works well whether there are 2 to 10 of them.

A simple contractor bid form will avoid a lot of confusion if completed correctly at the start of a job, meaning EVERYTHING is spelled out in advance. Any changes to the scope of work during the project should be changed and initialed by all parties.  

I still use this one:

https://assets1.biggerpockets.com/uploads/user_file/file_object/1167/Contractor_Bid_Form.pdf