All Forum Posts by: Tyler Shoaf

@Michael Schaeffer @Adrien C. @David Dachtera @Andy Rumple @Wayne Brooks Thanks everybody for the input! I greatly appreciate it! I just got their call tonight and have less than 24 hrs to see if they can in fact cancel the contract so I guess I'm kind of panicking lol. Adrien I noticed you're in North West Indiana would this apply to Indianapolis also? I'm not too familiar with contracts and legal issues so I'm not sure if that applies to the entire state or not? I got the property with a $0.00 down payment so not worried about that. I just want the deal because it's a great deal. I'm also trying to create a win-win scenario for all parties. They are saying the reason they want to back out is because they are looking for a new property to live in but want to close on the property I have under contract before they move out so that they can use the funds from closing to purchase the new property. They said they have nowhere to go and can't sell if I can't make this happen. They mentioned this before they signed and I told them I would do my best to see what I can do and they didn't have a problem with it at the time and they ended up signing right then and there. Now if its indeed true that they can back out within 72 hrs that means I have until Tuesday 8pm because they signed Saturday at 8pm. But I'm not sure if they are lying or not about wanting to back out because of their situation maybe they just got a better offer? And it so happens that my partner @Jay Hinrichs (the one providing funds and buying) is on vacation in Paris so I just hope he receives my message in time so we can figure this all out. 

Hello BP Community,

I have recently put a property under contract over the weekend here in Indianapolis, Indiana. The Title Company just began the title search earlier today. I'm not sure if the owners can legally back out or not but they said they contacted a realtor and hes saying that in the state of Indiana they have 72 hours to cancel it if they want to. Does anybody who's done business in the Indiana market know how true or false this actually is? Any help is greatly appreciated! 

Thanks,

Tyler

@Chad Clanton @Adam Anderson @Jay Hinrichs I really do appreciate everybody's input on this. But this doesn't change the fact that I still need the loan. What if the guy really is legit? He could just be new the lending business? That could be the reason he wants money upfront so he knows hes not all in by himself or to make sure I'm not just running off with his money. If this is the case then I'm passing on a great opportunity. Just because the guy is using caps excessively, has poor punctuation, and says he's out of town doesn't necessarily mean hes a fake. My grammar and punctuation is terrible but does that mean I'm fake? Absolutely not I've done deals successfully and I'm definitely not a fake. I've been thinking of a few ways I can find out if he's legit or not. Have him contact my Title Company so he can find out for himself that I'm not trying to run off with his money this makes it to where I won't have to send him my ID. Once he confirms I really am real and have this property under contract we can then proceed to the next steps. I tell him I will first need him to send his loan through the Title Company's escrow account. Once the Title Company gives me confirmation that his money has made it to the account then and only then will I send the $750. If anybody has any other ideas I can add to this I'm all ears.

Originally posted by @Chad Clanton:

 I only have a minute unfortunately, but I'm not loving the semi – broken English, overly flexible terms indicated, sense of implied urgency with the holidays, "optional" lenders fee, and the well-worn "out of town" line, etc. That covers the 15 seconds I spent reading; I'm sure others will chime in shortly, but that's just my take.

EDIT: OK, just had to read the rest. Not a chance. Horrible grammar, mixed tenses (common issue), waaay too many capital letters, the up front money you mentioned, basically every flag. Just no. Would you mind sharing a screenshot or copy/paste of the questionnaire? I'm curious. 

 It wouldn't let me post from my laptop so I tried on my phone. If you can't see it I will email it to you. 

Hello BP Community,

If any experienced private money lenders are reading this please give your opinion on this matter. I recently got into contact with a private lender (or so he says) by the name of Ludwig William and I'm not sure if hes trying to scam me or not. Here are some of our email messages going back and forth;

"Hello Tyler,

We will be interested in the deal and I will be personally lending you the funds needed. I have been out of town hence my late reply.

Best regards,

Ludwig William Oscar"

"Hi Ludwig,

Thanks for getting back to me. Sounds good to me. How does your process work and what are the terms/rates?

Thank You,

Tyler"

"The loan of amount will be possible and it will be at 8%. Depending on how fast we move we should be able to close latest Wednesday at most as long as all parties are serious about closing. I want to close quickly because as you know its almost December and the holidays are around the corner.

How will the interest be paid? Will you prefer monthly interest payments or a balloon payment at the end of the loan period? Do let me know what suits you.

Also there's something we do. We let clients choose if they want to pay a lenders fee. Lenders fee is a way of purchasing a small part of the interest rate. Meaning if you pay a lenders fee of 1% of the Loan amount you purchase 0.125% of the interest rate thereby reducing the interest rate to 7.875% (Please note that the lenders fee is taken from the loan amount and not paid upfront should you decide to take up this option).

Please note that there is no penalty for early repayment of the loan.Do let me know your preference so we can proceed to the documentation phase. Please note that there is a Loan Fee that is paid upfront. This will be stated in the Loan Term Sheet that will be prepared when all is agreed on.

We Will be looking forward to working with you on this deal and subsequent deals. We welcome all referrals in the nearest future as we build a strong business relationship. As we progress in this relationship you will be able to access some of the benefits you get working with us like reduced interest rates from time to time as a way of improving our relationship and making it mutually beneficial. We also offer a referral program were we pay you for any deal we close that you referred to us.

Best Regards,

Ludwig William Oscar."

"I look forward to building a strong business relationship with you. I'm definitely serious about closing. You want 8% interest so that's a total of $1,120 one time payment correct? I would prefer a balloon payment of the total amount upon closing of the property. I'm ok with 8% so no need for me to pay a lenders fee. How much is the loan fee that needs to be paid up front?

Thanks,

Tyler"

"Good morning Tyler,

Please find attached a funding questionnaire for you to fill and send back to me attached with a copy of your id card or drivers license for documentation purposes.

The loan fee is $750.

We should be able to close latest Thursday as I would want to round up early as I have a trip planned for the 29th.

There are two properties that was brought to me for sale. I will give you details as soon as I have them."

He just sent that last email about an hour ago and I haven't replied yet. Seems kind of odd to me that hes asking for $750 upfront on a $14,000 loan. He also mentioned 2 properties that was brought to him for sale and I don't know what this has to with me or the loan? Is this unusual or am I just overthinking the situation? I tried to attach the questionnaire he sent but BP wouldn't allow me. If you want me to email it to you I can do so. Any advice is greatly appreciated!

Thank you,
Tyler

Thank you sir!

Originally posted by @Brandon L.:

@Tyler Shoaf out of curiosity, what is the importance of the "100% of their time listing properties" As long as they get the job done as promised does it matter how they allocate their time? 

 I have been reading "The book on flipping houses" by J Scott he notes that the best listing agents are the ones who spend 100% of their time only listing properties that why I requested it. But you also have a point. I just need the job done in 2-3 months that's why I want a reliable one.

Hello BP,

I'm looking for a local agent who uses 100% of their time specifically listing properties. Not a buyers agent. I'm looking for a long term relationship with this person. If anyone has any recommendations I would greatly appreciate it! 

Thanks,

Tyler

Ok I will take the necessary action! I appreciate the detailed answers very helpful. 

Ok I will get on it. I really appreciate everyone taking the time to answer my questions!