All Forum Posts by: Scott Schnabel

VA Construction loans are tough. Typically the buyer makes and interest only payment on the loan during construction. VA doesn't allow this so the moneys to be paid are added to the project. Sometimes this creates appraisal problems.

I'm also looking in to VA construction loan as well, potentially for a BRRRR property. Could you please expand on why it creates appraisal problems? Thank you! @Scott Schnabel

@Edet Umoren Curious if you ended up getting the VA One time close construction loan?

Adding money to the loan for fees does nothing to increase the value of the home

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Riverside, California

Fairly large parcel. Looks like the auction was on 5/1. More than likely purchased by a developer.

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Cleveland, Ohio

Not sure. Seems like your brother would be the person to ask.

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Akron, Ohio

Quote from @Michael Smythe:

This has been going on for years in the Metro Detroit area.

I don't think they're holding the agent liable for violations in Detroit though.

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Cleveland, Ohio

Agreed. Good luck finding someone who wants to take on that role.

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Cleveland, Ohio

Standard verbage in Ohio contracts...

NOTE: In the event of a dispute between SELLER and BUYER over the return or forfeiture of earnest money
37 held in escrow by a Broker, the Broker is required by state law to retain said funds in the Broker's trust or
38 escrow account until a written release from the parties consenting to its disposition has been obtained or
39 until disbursement is ordered by a court of competent jurisdiction.

1 Vote

Cleveland, Ohio

Quote from @Barbara Berta:

Quote from @Russell Brazil:

Quote from @JD Martin:

Quote from @Barbara Berta:

Thank you everyone for the great advice!

The dispute is still not resolved, the seller still hasn't signed the release, so as a first step, I initiated a complaint with the real estate board.

I think in Ohio you can file in small claims court for amounts up to $6k. It's cheap and fast, so you should go forward with it. The court can order the money released back to you without the seller's permission. You can also drag it out - after 2 years they have to give it back to you unilaterally if the seller hasn't obtained a court order to take the money. Small claims would be better and faster, but whatever you do don't give in. And filing the ethics complaint is just something you do on top of it all, not as a way of getting your money back. I filed an ethics complaint against my old PM in Florida last year and we had a hearing. The Board ate him and his broker alive. Total fines for him was $1500 plus mandatory ethics and finance training in order to keep his license, and $1000 on his broker for improper supervision. That didn't get any of my money back from the crook but it sure felt good 😊

What here in the ops description suggests an Impropriety by the agent? The seller is refusing to release the funds, that's not the agents choice. One thing that people often overlook is that when someone may file a frivolous lawsuit or ethics complaint is that they run the risk of being sued/countersued for abuse of process. If someone filed a frivolous complaint against me I'm automatically out $5k for my e&o insurance deductible. So Id have no qualm suing for abuse of process.

The agent has interest in the deal, and he is the leader of xx RE group so after he refused to sign the release my agent’s brokerage went directly to his principal broker but it didn’t help…

Ohio law is pretty clear on EMD. If they won't sign you'll need a court order releasing the funds. Or you can wait 24 months.

1 Vote

Cleveland, Ohio

Quick blurb about the new out of county landlord rules.

2 Votes

Cleveland, Ohio

Cashflow will help you pay bills. Appreciation will make you wealthy.

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Columbus, Ohio

Quote from @Account Closed:

Quote from @Scott Schnabel:

Quote from @Account Closed:

Some reasons to have a coach

1. You are new and you want to skip a year or 2 of frustration and mistakes in your investing learning

2. You can afford the personalized training AND still have money to buy a property with

3. You've hit a mental or other "road block" and need help to get to the next level.

4. You want to learn new techniques.

5. You want to meet the coach's contacts to further your investment career. A coach has methods, systems, procedures AND contacts.

A good buyer's agent can do all of that and more.

Really? When did buyer's agents start training on buying "off market" without agents, subject to, wraps, seller financing, lease options, land contracts, fix & flips, rentals, taxes, asset protection, etc, etc, etc. Just curious. ;-)

By the way, since the NAR settlement means buyer's agents now have to have buyer's sign a fee arrangement, wouldn't the focus be on finding a property for the buyer instead of worrying about these other things? I think it will be interesting to see if buyer's accept that financial responsibility.

How does an FHA or VA first time buyer even have the cash to pay a fee to a buyer's agent? Interesting problem in my mind. Buyer's agents are worth more than listing agents in my mind, but I think they were handed a bad card on this one.

I agree 100%. I don't do anything "off market". Those deals give me hay fever, mostly from people who don't want me involved. So be it. But a coach won't drive 40 miles to do a FaceTime showing for free. :)

Financing for FHA and VA will evolve to address their issues. And yes, the Buyer Agency Agreement requirement is troubling. Used to be you would tour a couple of properties and get to know the folks and they would get comfortable with you before you asked for exclusivity. Now that is supposed to happen on first contact? I think we'll just be driving them to call the listing agent. Then it becomes the listing agent who has to get a Buyer Agency Agreement. How will that be enforced?

I'm not terribly worried but I am concerned and paying attention.

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All Forum Posts by: Scott Schnabel

Scott Schnabel has started 1 posts and replied 37 times.

Post: One-time close construction loan with VA

Post: Land Buying Idea

Post: FHA multi family construction loan?

Post: New Regulations in the City of Cleveland

Post: New Regulations in the City of Cleveland

Post: Seller not signing the release of EMD

Post: Seller not signing the release of EMD

Post: New Regulations in the City of Cleveland

Post: House hacking with a high interest rate

Post: Does Every Investor Benefit From a Mentor or Coach - Should You Consider a Coach