All Forum Posts by: Alan Salgado

The numbers might look OK and positive cash flowing. But the reality may be different. I personally would not buy this without truly understanding the condition of the mechanical. It was built in 1898. Eventually, something costly is going to go awry. Water lines, both main and throughout the walls, electrical panel if not already replaced could probably be outdated. 

I'm selling a home with no liens. Yet the title company insists on charging me a Lien Procurement Fee as a title services charge. They say they charge this to cover the work they have to do to clear title so the property can be transferred.

I was under the impression the Buyer also pays this fee as a title search fee anyway.

Is this a double charge for the same service?

Hard money is the same as cash purchase in the eyes of the seller. Mainly because there is typically no financing contingency in the sales contract. I'm not sure about your state, but no seller really cares where the cash comes from (within reason I'm sure) when there's no financing contingency.

The LLC question is best answered by a lawyer. However, I buy all investment properties in my LLC.

You can buy a rental property with hard money and then do a cash out refi after 6 months to get the 75% LTV instead of purchase price.

I've been working with Sun West Mortgage on a single family cash out. However, I did see that they also finance multifamily.

Never go with their closing company. I have heard horror stories from Hubzu buyers that can't sell their rehabs because the title company never filed to record the deed. Took months to clear it up. Always use a local title company that is familiar with the deed recording process in the area of the property you are buying. 

That being said, it's not uncommon for auctioneers to ask for an up front EMD after you've won the bid. They are legally set up to hold the funds in an escrow account until closing. I would recommend you wire the money to avoid losing the deal. But make sure you let them know you are using your own title company.

A simple credit report will clear up the bankruptcy issue. You may have to go to the municipal office to get the property records on those other 2 to prove who owns them.

Just about every state has a website for tax bills. With some searching you can find the available information easily. This is actually how I get 'accurate' information. However, there is always information that is close enough on the listing sites such as Zillow, Trulia, Redfin, etc.

Phillip I'm in the same position on a property in Anne Arundel county MD. Seems the IDOT is the only way around the transfer taxes for me since my loan is not commercial. It's in my name. The bank expected me to transfer the property in to my personal name and thus incur $5k in recordation taxes. I'm asking them to do an IDOT and leave it in the LLC. Otherwise I will have to seek a commercial loan and pay a higher rate. How did you move forward?

I recently flipped a house with a septic and well. Make sure you have them both inspected. The septic can be inspected by the same local company that cleans them out. Some systems work mainly on gravity, others have dual tanks where one has a pump that can need replacing every 5 years. I had to spend $5k to get my pump replaced.