All Forum Posts by: Sean Salandy

Daria B. Jay Hinrichs Thanks! This is good information. I will see what I can find out. I will make sure the money is brought to escrow and no money is transferred from me. He is asking for monthly payments. Is it typical in these scenarios to have a monthly interest payment or are the interest payments normally applied to the final payoff?

Daria B. Thanks for the reply. Those are good points. I will definitely request references as he did mention that he has loaned in the past. He apparently is a CPA by trade and also does some real estate investing. The interesting thing about it is that he offered the loan without me asking. My original reason for being on Craigslist was to see what interest I would receive for selling the home as-is. From that point, he offered to loan the funds. I will do my due diligence and of course involve my attorney if I decide to continue.

I received an offer through Craigslist from an individual to privately loan money towards the rehab cost of a property I own free and clear. What types of things should I look out for? People often say there are scammers on Craigslist. Just looking for questions to ask and ways to safeguard the transaction. Thanks.

@Colton Cook I'll follow up and let you know how it goes. 

@Colton Cook Thanks for your response. I agree with you. You would think that in a situation where the house is owned by a bank, there would be less of an emotional attachment to the seller, and the agent would then look at their numbers and what they can earn. I'm also not suggesting they would blatantly disregard other offers, but maybe just favor my offer a bit.

Thanks again.

Just wondering. Would it increase your odds of having your offer accepted in a "lightly" competitive negotiation if you decide to contact and have the selling agent  represent you directly? This wouldn't work in all situations obviously, but in some cases would having the property's selling agent incentivized by gaining both commissions, sort of sway their decision to "push" your offer? I know they have an obligation to put their seller's interests first. I am speaking specifically to bank owned properties.

Thanks.

Thank you @Kelly R. and @Nicole Grant. In reference to using a Hard Money Lender for the property, most will require a draw schedule (usually 4 draws after inspection of each milestone). I'm just wondering if it is even likely to find a contractor that will front the cost of materials while waiting on the draw schedule to finally be reimbursed. Especially if we don't have a previous relationship to go by. I would prefer in this case to not have to buy any materials so that they can purchase and guarantee the materials.

I am planning to use a Hard Money Lender to complete a rehab. I am assuming I will need to set up a draw schedule for any potential contractors. So far, the contractors I have contacted are expecting me to pay for all materials up front. Is this normal practice? If I am working with a draw schedule, how would I pay for materials if they are not scheduled to be paid until after certain milestones are complete? Shouldn't the contractor pay for the materials?

Thank you.

Alex Zuroff Aaron McGinnis Brandon Battle That's all I need to hear. Thanks!!!

I spoke to a contractor recently that told me he was licensed in the state. After additional research I found out that his license has been expired for two years. How likely is it that this was a mistake? Is this a sign of dishonesty? Some of the conversations we've had made me skeptical because he seemed to want to avoid town inspectors.