All Forum Posts by: Eric M.

I'm also interested in tips on this.

@Account Closed  No doubt. Serious Question: What should I do differently? Start agreeing to stuff that's not in the contract? Just "pay to play?" Is that typical in this space? I'm not being flip. Seriously asking the question.

@Douglas Dowell  Agreed. I don't think I have any obligation. I think offering to pay the $200 was basically a gift because I wanted to "be a nice guy" and resolve the dispute. Taking the high road, so to speak.

@Lydia Ford Yes, I later offered this, but, frankly, I'm sort of afraid to move forward with any changes. This was a completely out of line play, in my opinion. Now he's all emotional about it, which to me, is sort of the definition of a bad sign from a purportedly experienced investor and lender . . .

@Lydia Ford  @Account Closed The language is only this:

“if you do confirm and then back out or the deal doesn't happen for some reason not due to my negligence -- I'd like to collect at least $350 for the attorney and $400 for me”

To me, this is ambiguous at best. More likely, the lender assumed the risk of delays because there is no contingency in the contract for a delay. Of course, I didn't back out and the deal is not "not happening." It's just delayed.

@Douglas Dowell I'm going to assume the lender is the terrorist. LOL. ;-)

I have a deal with a hard money lender. First time working with him. The terms are not important. The deal is funded. I am the buyer. Both he and I are ready to close. Title has been slowing down the transaction due to a large water bill credit on the property. Neither I or the Lender are the cause of the delay. We are both ready to close. Today, Lender calls me and demands that I pay him $750 for the delay. He relies on the following language, which he drafted, in an email between us:

“if you do confirm and then back out or the deal doesn't happen for some reason not due to my negligence -- I'd like to collect at least $350 for the attorney and $400 for me”

He argues that his money is tied up in a delayed transaction, which I understand. On the other hand, the delay is not my doing. I want to close just as much as he does. I took issue with my having to pay additional for something outside my control, particularly given that the deal would eventually close, and he would get the full value of the loan.

Eventually, I offered to pay $200 (approximately one months interest under terms of the loan) for the delay. He rejected this, effectively calling me a slimeball for refusing to pay him the $750 outright.

Am I out of line here? A delayed closing sucks, but to me, it falls into the "**** happens" category, and the deal was still in place. Moreover, I thought I was being pretty darn generous by offering to pay for a delay that wasn't contemplated by the lender's contract and that I didn't cause. 

Thoughts very welcome.

I'm another vote for whatever the market dictates. At the end of the day, you're trying to make money, and if you can handle one, you can handle the other.

There is an active MeetUp that has a lot of people on BP. 

http://www.meetup.com/BwiMeetup/

That being said, I would personally be on board for a smaller dinner or drinks if you wanted to organize!

I'm a relatively new investor in the city, but I don't necessarily think that there are any areas that are necessarily totally out of the question. That being said, make sure that you're researching the rental area in any area you are considering. You can buy properties for less than $5k in Bmore, but that may not necessarily be a good deal, if you know what I mean? Be wary of more than a few boarded up properties, unless you are planning to hold for a long time.

Here are a few resources that I have found helpful:

Baltimore Neighborhood Indicators Alliance
http://bniajfi.org/

Baltimore CityView
http://cityview.baltimorecity.gov/

Foreclosure Indicators for Baltimore City
http://foreclosures.bniajfi.org/

Baltimore Open Data
https://data.baltimorecity.gov/

CrimeBaltimore
http://crimebaltimore.com/

Narrow it down to a few neighborhoods that interest you and then definitely drive them. Some neighborhoods I had considered were quickly precluded as opportunities when I drove them. Best of luck!

@Brandon Heath   Typically, the answer to your question would be in the corporation articles of incorporation. Typically, there is a "purpose" clause or similar. In a perfect world, you would have had some language there that said something like "all legal purposes."

Even if not, if you are the only shareholder, you could actually decide to amend the articles of incorporation, though that is not ideal. Also, you may have registered for certain licenses in your state already

So, that is the "legally" correct answer. Now, here is the practical answer. If you are the only shareholder, there is no one else to tell you what to do. Effectively, you can do whatever you want as far as the operation of the business and its goals (assuming legal and ethical, of course).

It is very rare that a state would limit a corporation's activities, so long as the corp is licensed as the state requires.

Bottom Line: If you are licensed as the state requires and you are the only shareholder, there is no reason your corporation can't buy real estate. If there are other people, you probably need to make some formal amendments to your corp docs.

*** Not actual legal advice. Consult a local attorney as necessary.

@Thomas Fleming  Welcome! Lots of good people in the area on here.