All Forum Posts by: Travis Meils

@Mark Durham

Yes your right I’ll do that.

Any advice on getting private money? Haven’t done that yet.

Have you ever had that great deal pop up at the worst possible time?! Today this is me and I’m looking for some clever help. Here is my position..

It’s probably my terrible pride but I feel Inclined to preface the scenario with a background as to how I got in the situation. I love investing in so many different areas and have multiple businesses. I work hard in all I do and It helped me become successful. I’m an Ecclesiastes 9:10 kinda guy if that makes sense. Every year my companies have grown and 2019 was a great year for us as well as it was for many other companies. All this to say since I was so busy and I do the book work mostly myself before passing it on to the CPA I have failed to file my 2018 taxes. I feel bad about it and know I will pay penalties but it honestly out-weighs the benefits we have gained from the year. I have made all the steps necessary to never have it happen again. My wonderful CPA has stepped in to get it completed and she could be done with it any day here. Plus I hired a book keeper now in addition to the CPA therefore my hands are mostly free for the future. 2019 taxes will be filed on time or possibly early. To be clear I’m not looking for advice on this particular issue but it is a part of the issue I’m about to tell you about...

So in December I closed on a duplex that gets $2,000.00 a month in rents and I bought it for $200,000.00 cash. Today I’m on my way to see a multi family unit with more than 15 units in it. I have about another $200k in cash but I still come up short. I might be able to use a portion of a line of credit for one of my businesses but I’m still short since the property is up for a little less than $800k. I have good rapport with my bank but I have doubt they will loan the money without those returns filed and paid for. They would loan to me for sure if I had them done. They would even mortgage the property I paid cash for last month along with it. The property has been on the market 3 days but there are a ton of people interested as expected. Even though I’m going to look at it I’m afraid I won’t be able to send any offers except an owner finance offer. It’s upsetting because if I didn’t buy that property last month I would have possibly been able to make a cash offer on this one. I should have tried to fix this tax issue sooner. This might end up being a huge life lesson.

Any clever advice?

I have never tried hard money and they don’t know me so they won’t probably loan money without my returns as well.

Should I just approach the bank anyways?

Should I quit now and not try to finish this race?

Feel free to give you honest opinion.

I was on track to close on a home on this Thursday and I closed on a deal in December. I have cash on hand that was definitely taxed but the mortgage broker doesn't want to use this cash. I'm putting a 20% down payment and it should be about $75K +/- with closing costs. He mentioned doing a gift deal but at only $10k per person I need to find plenty of family members to do me a favor and I'm very uncomfortable to ask. I'm looking for creative advice. I would be interested in doing the deal with an investor but I don't know any plus I most likely don't have the documents they would like before the closing on Thursday. ANY advice would be great here. Thank you--Thank you in Advance

Travis

It sure sounds like a sticky situation. I doubt that you can do much about it since they are the ones holding the funds. If I was in this situation I would just re-asses the deal and make sure it was still valuable like a new deal since you are working with the correct and more knowledgeable loan officer. If I saw that the deal kept me in the green I would find the funds to cover the difference. If its not valuable its one to let go. 

Congrats! I am in the area if you are ever looking to speak with a fellow investor. 

I was required twice by a lender to do a phase 2 for two different properties. Both had history that triggered this. One had the tank that was removed and the owner had an NFR but they still required the phase 2. Everything went well and we currently own the building. The other building is currently under contract and we plan to exit if the next set of results come back negative. Phase 2 is very expensive and can last years. Each boring has cost well over $5000. We only financially participated 50% in the first boring. The Phase 2 has reached its 3rd boring. The cause of the contamination was from the neighboring building that was previous a dry cleaning business that leaked perk. Most likely remediation will be required. There is no more super-fund available to assist in the clean up. The cleanup with take a minimum of 18 months and cost $80k +. A major concern is if the contamination goes onto from the property under contract to a different neighbor's property because the owner of that property can become liable to the neighbor even though it did not originate from his property. Needless to say but if your required to go into Phase 2 hold on to your seat and do your best to put the Phase 2 financial responsibility on the owner. I hope my experience can spark an idea for you.