All Forum Posts by: Varun Hegde

Thought I'd get some advice on re-roofing a house in CLE, so I spoke with him for a bit. It was the most confusing conversation I've had in my life. Felt like I was speaking with a virtual assistant backed by AI.

He estimated my re-roof would be half the size at double the rate quotes I got from everybody else... truly amateur hour for somebody that claimed to have done hundreds of these.

I also was never able to find more than 5 property records tied to his name or to related LLCs. I didn't try too hard, but again, if somebody has had their hand in hundreds of houses you'd think they WANT a real and recorded public presence.

Is it this one: https://www.loopnet.com/Listing/3630-Trowbridge-Ave-Clevelan...

If it is, very challenging to put something here considering it's a residential neighborhood and there's probably a lot of work to do to get it up to snuff... cocktail bar might be a tough sell given demographics but otherwise could be an interesting project!

Ok great, seems like my concern over borrower's driver license is unnecessary but concern over the title policy is warranted. I'll update the thread on what we settle on. Thank you for your help!

I'll be receiving a warranty deed from the seller. I'll also be assigned the contract for deed via an allonge. This means that as long as the sellers' title is vested correctly then I should be clear to deliver a warranty deed when the borrower completes their end of the CFD agreement.

@Chris Seveney do you think I should make sure there’s a valid title policy (i.e. that the commitment was fulfilled?)

Got it. The CFD is not recorded. I have the original CFD doc though so not concerned about the recording status. I have priced the cost of the warranty deed into the purchase price as well. Title company is presumably not aware of the CFD as it's not recorded.

I'm not sure if seller is providing a title insurance policy, but I guess if they do then it doesn't matter if they have title insurance?

1. Yes, they are

2. No quit claim deeds, just warranty deed. However - the CFD that will be assigned to me requires that I furnish the borrower with a warranty deed too. Results in some minor potential title risk for my firm

3. I called the title company in question and they said they can't search up the policy with just the commitment # - what would you do in this situation if you have a title claim arise?

4. that would be super helpful, can you please DM me your contact?

In contract to purchase a CFD in MO. Have done most due diligence items, but I'm stuck on two pieces that I'm not sure about.

1. The seller doesn't have the borrower's driver license or any identity verification paperwork. They also haven't kept records of the original origination documents as far as I can tell. The borrower has been paying on time and the CFD purchase price to property value is <50% at this point. I should still wait for the DL or passport, right?

2. The seller doesn't have copies of their title insurance policy binder. All they've provided is the title insurance commitment. I should wait for proof of a title insurance policy, right? The only reason I'm hesitant to move forward without this info is that the seller is an inactive corporation - if they dissolve and there are issues with their warranty deed then I don't want to have to pay a lawyer to go after the GP of the defunct partnership to make me whole.

He went on a podcast less than a month ago, so Lane Kawaoka is definitely still marketing himself as an expert.

I actually remember reading about him a couple months ago and feeling jealous, but the only way I could've built similar scale is running 90% LTV on multiple deals... sounds like that's what they did.

It doesn't surprise me that many of these syndications are blowing up left and right. Rates are a challenge, sure, but so many GPs also bake in easy operating environment and assume no cap rate expansion.

@Giles D. maybe if you offer to interview him for a podcast he'll show up? I'm thinking something like Maury or Jerry Springer

According to public records, the property was boarded up in '21 before sale in '23 for $160k.

After the transfer, looks like somebody from the city came by and noticed the property was falling apart. This seems fishy bc I doubt the city inspectors have time to just hang out around random houses and post violations. It is a real violation though as far as I can tell:

"OWNER HAS 48 HOURS TO SECURE PROPERTY, 60 DAYS TO CORR EXTERIOR VIOLATIONS AND 180 DAYS TO CORR ENTIRE NOTICE W/APP'D MATL'S PER CITY CODE. REMOVE ALL DEBRIS C OF O REQ'D, SEPARATE PERMITS REQ'D FOR M/E/P. FAILURE TO ADHERE TO THIS REHABILITATION PLAN COULD RESULT IN PROSECUTION OR DEMOLITION."

clearly the OP was sold a dud. whether her realtor knew or not is questionable. If I had looked up the public record before purchasing, somebody would need to pay me to take the house on without a walkthrough or inspection.

As far as I can tell there's no publicly recorded mortgage... that's the most fishy part of this. @Summer Dechanukul are you sure that your mortgage is recorded? You need to consult with a lawyer, especially if you didn't sign anything acknowledging the property's lack of habitability and the seller's disclosure didn't mention it.