All Forum Posts by: Westin Hudnall

@Bill Gulley

I have a technical question for you bill.

On this property ; a friend of mine is purchasing the property than selling / deeding it to me and my cash funds are coming from another investor who is acting as the banker. The banker/investor wants a few items before loaning me the funds.

She wants a mortgage file of record ; to hold 1st lien position ; and wants a promissory note. 

Do I write up a seperate agreement between myself and her to include these items ; does an attorney do this or a title company ?

I want to provide her with these items im just not sure how to proceed on doing so ; 

Please advise

Thanks :)

@Rob Golob

Rob - The goal in business is to find a solution to someone's problem that in turns benefits both you and your client which is what I have done.

The bank is foreclosing her home on Monday otherwise

@Steve Babiak

@Bill Gulley

You guys bring up some great points. I have never done a deal like this so I'm deffinately clueless as to the ramifications ; what I do know is the deal is too sweet to pass up so I'm trying to find the best way to do it. What can be illegal about buying from a bank for a deal that they agree too then selling it down the road back to the original owner ?

I personally don't want to sell it back to her as it needs no repairs and is sellable for $125k conservatively as is (picture an older couple who turns their car mats upside down to not let them get dirty and takes care of their house the same) ;  the sell back price would be $90 k so obviously them moving on makes the most sense to me but terms have to work for them as well if I want the deal or if I want to keep a clean conscience. She is really nice and I want to do the right thing so the suggestion to help her find a new place might be a great option as I should have my real estate license within the next month or two anyway.

If I do sell it back ; my plan would be as follows

Pay in cash in the next week :

Get an adjustable rate loan at 75% of appraisal in the next 30 days (around 90k after loan fees) and pocket about $18 K in the next month.

Rental price has not been agreed to but my thoughts were to have her pay for all needed repairs and maintenance to offset the low purchase back price that I would be agreeing to up front.

Would you 2 Gurus do this deal ?

@Steve Vaughan

Seller is over 30 k behind ---

Long story short (an old women) made a mistake that I don't want to get into (she got scammed) and now faces foreclosure . She is honest and has sentimental feelings with her home

Home Value as is $125 K

Purchase Price - $70 k

The owner I would be purchasing it from is losing it to the bank and wants to continue to rent with the option of purchasing the house back in 5 years or less for 90 K.

I have never done a lease back ; what should I put in my lease with the renter to protect myself down the line if she was to struggle with payments ; damage the home ; etc ?

Thank you in advance

@Cole U. 

What up my brother !!

Long time no talk ---- Had NO clue you were on bigger pockets :)

Miss you down here at Enterprise in Wichita ; hope things are going well for you in Indy.

@Eric Carbrey 

I would never purchase anything the renter isn't paying for 100%. I know your viewing the guaranteed payment as a positive but for me that's a huge negative.  This leaves you open to so much exposure ---- many will trash your place and not care ; they won't take pride in ownership of something being handed to them.

Also for $140k ; your loan is going to be around $1000/month. After expenses you won't profit and you might even negative profit. Instead you will spend all your time repairing damage that will cause you to have a high rate of vacancy raising your costs. 

My advice if you have $140k to spend would be to play it safe ; find a nice single family home in a nice neighborhood that you can rent for $1400/month that will bring a high end low maintenance tenant where costs are very low.

Save up ; wash ; rinse ; and repeat.

Leaving my full time office job soon to have job flexibility and to be able to concentrate on growing my real estate business which currently consists of 10 single family home rentals. I plan to work as an agent full time under the mentors hip of a close friend. Being an experienced investor and knowledgeable about the business ; I want to give up as little comission as possible as I will require less training ; less broker supervision ; etc.

Thanks in advance :)

The property manager wants to prove his worth and is willing to pay for all materials and not receive a payment for him or his crew until completion.

Keep the advice coming !

morning everyone !

I'm starting a new project where I have hired a project manager with the agreed terms:

A 4 man crew with one being the project manager will be there at all times ($70/hr for the 4 man crew).

My goal is to do everything possible on the front end and throughout to eliminate problems and challenges during the process from a time management ; construction management ; and from a contractor / landlord communication standpoint.

Thanks in advance for advice on these 3 points

@Joel Owens 

Thanks for the advice. I've been an investor for a few years. I'm not an agent yet but will be within a few months / just getting prepared.  I want to apeal to as many buyers/sellers as possible.  

Maybe I should have 2 business cards since I have a strong understanding of the investment side ? 1 card appealing to home buyers with a message similar to what I wrote above and a 2nd card with a call to action (say a property spreadsheet that adds up ROI)to hand out to fellow investors?

@David Hunter 

What would you recommend being in the video? Thanks for your advice