All Forum Posts by: Anthony Pollachioli

Sold my home FSBO, the buyer wanted help paying for repair work needing to be done that came up on inspection report. This was not listed in our closing contract.

I don't mind splitting the cost of the repair by paying the contractor directly, but have tax concerns. Because this was not listed on the closing contract, it will look like I made more money from the sale than I actually did.

The sale closed on 4/29. I know I am in no way legally responsible to pay for the work to be done, but in the interest of being a decent human I agreed to pay some of the repair cost as long as there is a way to navigate the tax implications. Any tax experts know how or if it is possible to write off the repair cost? A lender told me I could have the contractor write me up a separate invoice for the amount I agreed to pay, and document well the address and reason for paying the repair costs, and then I could write it off. Hoping to gain some more information. 

Thanks!

@Kevin Sobilo, baseboard molding is definitely our next step! The wax crayons are an idea I havent thought of, but not sure if it would work. The hardwood is "splintered" up as a result of pulling out the staples, and will need to be sanded down to be smooth/safe. I just feel that the spots that are sanded will stick out like a sore thumb, which is why I landed on thought of a sanding all of it down with 100 grit. I figured I would fill the bigger holes with wood putty, 100 grit sand, and then poly. Not sure if the wood would need a stain after the 100 grit though. 

I made it sound like its only in a handful of locations but they truly did staple two staples side-by-side, about 6 inches apart in "rows" across the hardwood. Each row is about 5 ft apart. I might try going over each staple hole gently with my palm sander first but I think it'll stick out like a sore thumb if it takes any stain off.

@Bruce Woodruff I like this idea! I think it will need to be sanded but we are not paying anyone for the job and are hoping to get by with puttying (larger holes only), then a pass or two with 100 grit, then poly. Any reason this wouldn't work? I assume even 100 grit would sand down the existing stain, is there any reason we should lay new stain (aside from aesthetic), or just poly and be done with it?

We tore up carpet this past weekend and while the hardwood underneath looks good, the previous owners used not only tack strips, but also decided to staple the carpet padding directly to the hardwood in "rows" throughout the floor. Nail holes need to be filled where tack strips where, but ripping the staples from the hardwood resulted in several rough spots that need to be sanded down.

We have no experience with hardwood refinishing- what are our options to avoiding a full scale hardwood refinish? Could we get away with running the 100 grit once and then finish? We are needing ideas to smooth out the "rows" of rough previously stapled hardwood sections. 

For background info, this is going to be a rental to students at a local grad school who will prioritize function over aesthetic. While we are not truly concerned with making it someones dream home, we do want it to be smooth/safe with a modest level of eye appeal and without a massive time or money investment. Any suggestions would be greatly appreciated!

 The crediting reporting agency is showing a credit pull by the same bank that her Mom is attempting to get a home equity loan through. It's pretty clear cut that the credit pull came from her application. She is adamant she didn't give the lender my girlfriends SS# or any other info, so someone has obviously overstepped the line somewhere. This is a local bank in a rural area and my girlfriend and I have our mortgage on our home through this bank, but I really am not sure how they would have pulled my girlfriends information for a credit check if her Mom did not provide the info.

We will be calling first thing Monday morning when banks open, but our major concern is whether she is able to sign for the loan (should it be approved) without my girlfriends approval, since she is also listed on the deed. 

My girlfriend and I are rehabbing a house and we have work set to begin in the near future. We are in talks with a lender and plan on taking out a home equity loan soon on the house we are rehabbing to finance the rehab. 

This question is regarding a separate house, and a separate home equity loan. My girlfriend and her mothers names are both on the deed for this other property. Her Mom currently lives there, but the house was given to my girlfriend by her late Father. Her mom is listed as "lifetime estate tenant" on the deed. 

Her Mom is attempting to take out a home equity loan on this property to consolidate credit card debt. My girlfriend is against this idea for many reasons, but most importantly because we believe it will jeopardize our DTI for the home equity loan (which we will both sign on) for the house rehab. This obviously puts us in a tight spot as we have work scheduled to start soon and need the loan to finance the rehab.

My question for lenders is, can her Mom take out a home equity loan on the inherited property of which she is listed as a lifetime estate tenant without the consent of my girlfriend (co-owner)? Just today a hard inquiry from the bank popped up on her credit report from CK. My girlfriend has signed nothing and gave no consent to have her credit run. We asked her Mom about it and she admits that she applied for the loan but denies having given my girlfriends SS# or info to the bank. We have not applied for any other loans and are not sure why this hard credit check has appeared on her report.

We need to stop this loan from occurring. What right does a co-owner (or lifetime estate tenant) have to the equity of a home? Does taking a home equity loan require consent from all owners on the deed? This is in Virginia.

Yes I believe you are correct, there is no true leak in the foundation but rather runoff from the hill above it needs to be rerouted around the home. We actually sat with a lender today and went over financing options for a rehab. I believe we are going to go with the cash-out refi though he also suggested using a construction loan which would have delayed principal payment period if we thought the rehab process would take a long time. He said since the property is not our primary residence, we could not take a HELOC on it.

Our plan as of now is to gather quotes for things that need to be done such as the floor joists and grading. Another major cost to rehab I did not mention, having the electrical rewired as it is certainly not up to code. Additionally there is a drain in the garage that runs under the driveway and to the road that is backed up (or collapsed, though I dont even want to think about that as we would have to tear up the driveway to fix it), and we believe it is also causing water to run into the basement. Each of these major concerns (aside from general remodeling costs) were considerations in deciding to sell and build a modular. 

However, we are going to do our due diligence and consider the cost to rehab versus selling and building. Once we gather some quotes and look at what all truly needs to be done we should have a clearer picture. In case you were interested in the cash-out refi loan- looking at 15 year 7.25%-7.65% (yikes) 3 yr or 5 yr ARM with no early payment penalty. Closing costs are variable but about 2-3% of loan amount.

Also, and sorry for all the questions- for our situation would you recommend consulting with a financial advisor or an accountant? I have been getting mixed answers. We would like to talk to somebody who is knowledgeable with real estate investing (aside from yourself, of course) who can help us through the process of determining all of the what, where, and how with this property. Would you recommend we work with a CPA? A financial advisor who specializes in real estate rentals/investment? Thanks in advance!

Thanks to your info, today I decided to call a foundation repair contractor and set an appointment in a few weeks to take a look at what needs to be done and give me an estimate. The floor joist and basement flooding issues both need to be addressed. In the old section of the house, there is a sump pump/pit and the new section of the house has a perimeter drain, but unfortunately there is still standing water. There doesn't seem to be a leak in the wall of the basement but rather general seepage through the cinderblock as a result of the hill it is built into. However I'm no expert and will hopefully get some more answers with the upcoming appointment.

As far as financing this rehab should we move that direction- I have read up on HELOCs, home equity loans, and the cash-out refi. Why are you not a fan of a HELOC? It seems to be the most sensible option given for us that our cost basis for the rehab is very up in the air. Is it the interest rate?

Can you elaborate more on what you mean when you say "That will cover not only the rehab but also the mortgage payments and carrying costs until the rehab is done plus more to invest in whatever else you choose." You'll have to excuse my naivety, what are carrying costs?