All Forum Posts by: Ivan Reyes

My first short sale. Seller is willing to just hand over the deed and rid himself of the property. Question is what Deed is used in Alabama and what document can I use so he can just transfer the deed to me?

Also, I was planning on using an option contract. Should I use a standard sales contract instead? On the other hand do I really need a contract if he's willing to deed me the property?

Thanks.

Ivan

My partner and I are closing on a house that has older awning windows. We knew we had to replace the operating hardware that is a scissor type arm with the rotating handle. We have to replace 21 of these operators that are all broken beyond repair.

We're now realizing that these things are averaging $60 each to replace not including shipping. Anyone know a window hardware company that sells these awning window operators used or cheap? Anyone had this situation and found a different way of opening these old awning windows that's works just as good.

Thanks.

Ivan

My partner and I are ready to sign off on a contract. Its a Fannie Mae foreclosure. Its being sold through an agent with a management company.

We just got the contract and article 14 has a deed restrictions. It basically states that the grantee is "prohibited from conveying property to a purchaser for three months from the date of the deed.

Are they basically stating that we have to wait three moths after we close before we can retail the property to our buyer? Has anyone else seen this before.

Thanks.

Ivan

Yes, I do trust each other with are lievs realy, but we know business is business. One is my brother and the other is one of Jr the pastors at his church. The Pastor is using her credit to qualify for the HML.

My brother and I are finding the deals and managing the projects. We are splitting three ways...So equal. I already have a new LLC in place.

Ivan

Hi can someone give their advise on this?

- We have three partners. One credit person (hard money loan), myself and one other find deals and manage flip.
- Should we all be members of my LLC, title property in LLC and then we split the net when we sell?
- Or should and LP/LLP be in the mix somewhere.

We have a property already under contract so I guess we should of had this finalized sooner.

Thanks.

Ivan

I thought I saw a post here that basically talked about using hard money at 70% ARV. But if you estimate that your deal only requires 64% or 67% ARV that you may be able to get the difference at close and pay it back when you sell?

Reason I ask is that I found a property where the buy and fix will really only be about 64% ARV. I've identified a hard money lender that will do 70% of the ARV. My contractor needs a 1/3 to start the project which I will pay when his guys show up and finish the day. If I could get that % difference at close it would make things easier.

Can anyone shed some light on whether hard money lenders do this or not?

Thanks.

Ivan

Here's my situation.

I have an new LLC (no history, just a bank account)
I have two people who want to invest 50/50. They will front their credit on a hard-money loan. One partner per deal. I find the deals, negotiate and manage the project. I'm a loan officer.

How should I structure this so I'm more secure when the check arrives? I know the check will be in the name of my partner. Also hard-money gets wired to borrowers bank account. Should I:

Title the property into my LLC and add them as a member.
Create a partnership for each deal with 50/50 split.
We open a bank account together with co-sign privileges.
Create an LLC for each deal.
Other ideas???

It seems like there are many options and now I'm not sure what would be best. Any ideas.

Thanks.

Ivan

Thanks Jon,

Details are:

Hard money loan at 70% LTV
6 pts at 15% for a 6-month loan
No payments due
All closing cost rolled in except appraisal
Purchase 25K
Rehab $10-15k
Retail $75K

- pts $2100, closing $1500, insurance/insp $1000, interest & 1/3 rehab $3750, rehab balance $14K approx., marketing $1000, misc $1000=$24,300 approx.
- Total $49,300
- Retail $75k
- About $25k net @ 66-67% ARV

Look right to you?

My partner and I are securing a hard-money loan to do flips. Low to mid priced homes with ARV of 80-100K. We are working on our first flip at $70k ARV. We are planning on getting a private loan of $5k so we can have some cash reserves.

The reserves would be to pay the initial initial draw to the contractor and marketing. The loan would be secured by the property until we retail it.

Is 5k enough in your opinion? Also how much should the contractor get up front. I hear many people saying 1/3 up front and the rest in 1/3's. Any thoughts on reserves and the up front to the contractor?

Thanks.

Ivan

I'm not loyal to insurance companies, but I do believe in never having too much insurance. I'll probably get a heavy short-term policy and put the property into an LLC.