All Forum Posts by: Edward C.

Hi Scott, Thanks, I got the questioned answered from my RE attorney the next day. Basically you can't borrow the money to show as liquidity to a bank and pay it back as soon as you get the loan, without replacing the money from somewhere ells.

If there's as problem with the investment latter on down the road, the bank will take a look at things, and that's when this could become banking fraud. So not a good idea.

Cheers

I looking at to get started on a 5 to 6 month rehab project with a high pay out at the end. 

If I needed to, and as long as the 401K allows lending against it, would I be able to use a 401K loan as a bridge loan for about 2 months until I cleared up other more traditional lending methods to pay the loan back? The Rehab will not be complete at this point just paying the tax free savings back. Also thinking of using self directed IRA money and paying it back in to my account with same lending process. Any legal issues with this or will I need to keep the 401K/IRA money in the deal until the project is complete and the final pay out is done?

Thank you for any info you can provide in regards to this.

Ted

Hi this is Ted from CT.

Ito borrow from the bank is it common for the bank to approve you on condition that you can show that your holding some cash in your account? If so then can I borrow the cash and give it back after I get the loan?

How should this be set up if I were to borrow the $ from someone, ie set up a serrate LLC, joint venture, or is there another way that they were able to insure that I was in fact using the money just to hold and not spending it?

Thank you in advance for any ideas that you can share.

Would anyone know the cost on average for DP70(?) Hurricane windows compared to regular windows to purchase? Is there more cost to the installation?

The Roof looks good to me however, the front fascia is out of shape and apparently vinyl siding has been used as the Soffit, which is broken in places by the critters that have now moved in. Would this indicate that perhaps the Sheathing of the roof is probably in need of repair/replace?

This home has been abandoned for about 2.5 years.

Thank you very much for any advice you could provide on this.

Sincerely

Ted

Awesome, Thank you very much Charley this explains a lot, and makes a lot of sense.

I was thinking that all I needed to do was add a layer of 1.25 " to bring it to 18" but now I know that's not exactly right. looks like I should see about creating better derange to get this to happen.

Sincerely

Less Confused now.

Comps for beach homes in this neighborhood are from 900K to 1.3m. This home is one house in from the water with excellent views. Has no damage from Sandy or Irene, but has lots of neglect from past owners from 2001 to today.

It's a 3 season only, though they did winterize it many years ago with insulation, forced air heat and A/C, but the septic is not adequate for winter use.

I went to the town hall to ask about that, (and this is were I'm not sure what I'm asking or what they're talking about) the last "Perk Test" was in 2000 and measured 16.75", the town won't allow the septic for all year use unless the Perk masseurs at a minimum of 18".

I asked about adding a little dirt to the property and there telling me it won't make a difference for the 18" high water line has to be with the original natural dirt so adding won't make a difference.

It's a short sale and the banks looking for 550K, the comps for this as a 3 season is about 750K but as a year round residence it would be more like 950K.

Any ideas around this 18"?

Thank you for any suggestions.

Ted Cole

Just to follow up on this. The expenses came out to just under 12k a year, hes looking at 190k+, and I'm at 90k. Not close to the ball park, we left shacking hands wishing luck to each other.

He was looking to sell @ an 8% cap, but wasn't taking in to consideration that the property management and maintenance 'that they do them selves' was cutting that to an actual 6% cap.

Thank you both for your help and replies.

Next.

Thank you guys, I got some numbers for property managers in this area and will make some phone calls to see what I can find out, and to get some comps. What other ways would one do to get comps in the area?

I haven't made an offer yet, I was planning on an inspection afterwards. I'm sure your right though. They have had the property for almost 20 years now, but have done nothing with the roof yet. Should I make the offer first and be willing to drop the offer price with any thing from the inspection?

Hi. I’m looking at a 2 unit in Seymour. Gross Monthly rent $2,000 from both units ($1,000 each). The operating expenses come out to $11,600 a year. GRent: 24,000 Operating exsp: $11,600 NOI: $12,400 So if I get this home for $100,000 than I’d be at a 12% Cap Rate. Is this correct? Ted

Assume, don’t kill yourself with us, Your Business needs to come first.