All Forum Posts by: Bill Hamilton

And I don't mean this with sarcasm Bob. I actually have some contacts (one layer removed but well verified) who could throw down the amount you are talking about from their personal checking and not ever worry about the result. But sadly I could never get this through them in the timeframe you need. Strangely enough the amount involved is not enough to make them pay attention except when and where they care to look at it. And trust me, if I thought I could make it happen, I would so peel a point off of this and run to the bank laughing all the way. But I still want to see you land this. I know it can happen but I have watched so many deals like this die it makes me skittish to ever try another one (so much time and resources wasted by myself and my friends in the past). Please let us/me know how it turns out.

This has been an amazing/horrifying thread to read (and I have read the whole dang thing). I am seriously afraid I would have done bad things and claimed PTSD were I in your shoes (just kidding). Major kudos to you for doing it right and keeping things together. I do hope you get a decent profit eventually. And that your POS squatter gets what he deserves ultimately. I won't deign to say what that should be but it won't be anything nice.

I guess I get the argument that wholesaling is legal but it seems very gray to me. It seems it would open you up to lawsuits by your buyers and prosecution by the local authorities. Not to be critical buy why wouldn't you get your RE license instead? It would remove the doubt from your position and I fail to see a downside. Not that I am not willing to be enlightened on why you wouldn't get licensed.

It sounds like @Rick H. knows what he is talking about with this. Personally, I would get your title company of choice involved. This is really what they do day in and day out.

Best of luck. But I have to tell you that unless you have (which it doesn't appear you do) an existing relationship with a lender that can pull the trigger at this type of dollar amount, this will almost certainly fail. Five days is just too short of a time frame for most lenders (including private money etc) to perform their due diligence and come to a decision. But honestly I hope you prove me wrong. I would love to see it happen and prove these "big whale" deals can work.

Honestly, then why would you want it? Unless you think it will appreciate big time (always a gamble but hey, we all have our methods.)

Tell the bank to do a "subject to " appraisal with all the repairs. If it doesn't come in at the high side of Zillows estimate then no one will buy it without the bank lowering the price considerably. Think about it from a home buyer or investors view. If I am going to do rehab at all, then I want a fairly large upside, partly due to the fact there are always risks in pricing rehab. If the bank thinks I will buy at $200k, put in $35k in rehab for a house that will value out at $220k then they are crazy.  Even if it were to value at $270k those are slim margins for most to risk.

Many/most lenders do this type of search. It is no different than if you are cosigned on a loan, even if the other borrower(s) have always made the payment, you could end up being on the hook for the entire payment. Some banks (think portfolio lenders) may decide they won't apply those payments to your DTI. You may want to talk to a well connected mortgage broker as they should know the answers you need.

John, if you are a cash buyer you can do most of what they do. If you need any sort of financing, then it is not worth arguing about. No lending institution including every HM or private lender I have ever worked with will require it. From your own standpoint if you are willing to lose a property to an unexpected claim or lien against the title then go for it. Title insurance is no different than buying life or health insurance. You are not required to get it but rather you are gambling that you won't need it. If you purchase title insurance and an unrecorded lien etc. shows up then the title company will fight it and if they don't win they will pay out the policy. They also know how to solve title issues that most of us don't know about until it smacks us in the face. I used to work the wholesale side of mortgages and I can tell you I had more deals fall apart due to clouded title issues than from any other single thing.

Not true. You cannot only look at the exemptions. You need to review the entire policy. If you are not comfortable risking your entire investment on your knowledge of legal terminology then you need to hire your own title company.  When you do that, they have a fiduciary responsibility to you and they will make a much greater effort to insure you have the coverage you need so you don't sue them. Keep in mind that in most parts of the country. title companies are run/owned (often the must be) by lawyers. If you are going to play with lawyers you really need a good one of your own. It is not worth saving a few hundred dollars to risk your entire investment unless you are really experienced in this arena.