All Forum Posts by: Shannon Wright

Depending on contingencies, the buyer should be able to walk away. Buyer Non-performance re: the EMD is probably the #1 reason for a deal never getting any momentum, so should be a no brainer to walk away from by the seller.

Technically, yes, but the risks are all still there, irrelevant of loan type.

Why not add a HELOC 2nd to get the cash needed instead of wasting so much money on closing costs? I believe TCF Bank does them for less than $500 in lender fees, if you qualify, of course.

The fees listed actually total $6,138.38 and taxes and insurance are $1,085, which leaves $5,053.38 in closing costs and $3,016.24 of that is POINTS? 28% fees to cash out ratio is a lot and I never understand when people paying for points on such a small cash-out amount and not an amazing rate/payment difference. Based on the $5,053 in fees, it is a 35% fee to cash out ratio. If you were cashing out $500k, would you be willing to pay $175k in fees?

Just my opinion...

What state is the property in?

@Dan H. There are lists on the county websites with the properties going to tax sale. 

Why not just have solar removed and end the service? You don't have to keep the panels. There has to be an opt-out option, they cannot FORCE you to keep panels.

I have many investors who have zero EMD. At the end of the day, the EMD amount is whatever the seller is willing to accept, it is the contract between the principals and whatever the principals agree to is what happens.

I have a way to put an assignment fee as a separate escrow, so it doesn't cause conventional lender issues, but that means the buyer is funding 2 escrows at once...it's possible but still challenging.

@Chris Mason, was that our deal you're referring to? :)

How would you have 2 EMD's locked up at once if you get 2 offers accepted? Are offers being made with the EMD together somehow? If you get 1 accepted and you are already locked up, ask the seller if they are willing to extend timing since you are in another deal. Some sellers will wait and still execute a contract, so you are ready to go when the time comes. You could always assign or double one of the properties, too, assuming that your contract allows for that.

Are you asking LA - Los Angeles or LA - Louisiana? I think these are completely diff markets so the answer might be diff. My investor clients have assigned contracts in Cali for as little as $5k and closed a double escrow for as low as a net profit of $10k. I think the market you are in will influence that answer, also. I always my advise my investors to never double for less than $20k and I would apply the same idea to a flip...

What is your hourly wage at the end of the deal? Not all deals are good deals and not all money earned is worth it. For example, if you spend 2 hours a day working on a deal for a 30-day escrow, then that is 600 hours invested, to earn $30k, which is $50.00 an hour. The value of $50.00 as an hourly wage is different for everyone.