All Forum Posts by: Blake Hansen

Found this today. We're just a few days away from closing so if it's relevant for me it might be for you too.

(apologies if this is already posted elsewhere)

https://www.car.org/aboutus/mediacenter/news/covidformcva?src=redalert

CALIFORNIA ASSOCIATION OF REALTORS®

CORONAVIRUS ADDENDUM/AMENDMENT (C.A.R. Form CVA, 3/20)

The following terms and conditions are hereby incorporated in and made a part of or, as applicable, an amendment to, the Purchase Agreement or n Other _____________________________________________________ dated _____________ (the “Agreement”) on property known as _______________________________________________________ (“Property”) in which _______________________________________________________________________ is referred to as Buyer and ___________________________________________________________________________ is referred to as Seller.

From time to time, events overtake the ability of the parties to a contract to allocate the risk of nonperformance. Such events are often addressed by a “Force Majeure Clause” allowing a party to suspend or terminate performance when circumstances which the parties could not have anticipated, or which are beyond their control make performance of the contract impossible or impracticable.

The current world-wide Coronavirus (COVID-19) pandemic has had unprecedented impacts on real estate transactions, including, but not limited to, travel restrictions, self-imposed and governmentally required isolations, and closures of both governmental and private offices required to fund, close and record real estate transactions.

Accordingly, in the event complying with the Close Of Escrow is not possible or practical as a result of unforeseen circumstances related to the COVID-19, such as Buyer’s or Seller’s inability to travel to sign documents, closings of or delays in related government and business services, including for example delays by or closing of lenders, title/escrow, county assessor/ recorder, or otherwise (hereinafter “Unforeseen Circumstances”) the Parties Agree as follows. All other provisions of the Agreement remain in full force and effect:

1. Buyer and Seller agree to postpone Close Of Escrow by up to 30 or ____ Days to accommodate Unforeseen Circumstances, after which either Party may cancel the Agreement and Buyer’s deposit shall be returned to Buyer, minus fees and costs incurred by Buyer. No Notice to Buyer or Seller to Perform (C.A.R. Forms NBP and NSP) nor Demand to Close Escrow (C.A.R. Forms DCE) shall be required.

2. n If checked: Buyer and Seller agree notwithstanding that Buyer may have removed their loan contingency, if Buyer’s inability to fund their loan and Close Escrow is due to Buyer’s loss of income from COVID-19 related issues, then either Party may cancel the Agreement and Buyer’s deposit shall be returned to Buyer, minus fees and costs incurred by Buyer. No NBP or DCE shall be required.

3. n If checked: Buyer and Seller agree to mutually cancel the Agreement and Buyer’s deposit shall be returned to Buyer, minus fees and costs incurred by Buyer.

4. Other: __________________________________________________________________________________________ _________________________________________________________________________________________ _________________________________________________________________________________________

By signing below, Buyer and Seller each acknowledge that they have read, understand, accept and have received a copy of the Addendum.

Date _______________ Date _______________

Buyer ___________________________________________ Seller ___________________________________________ Buyer ___________________________________________ Seller ___________________________________________

© 2020, California Association of REALTORS®, Inc. United States copyright law (Title 17 U.S. Code) forbids the unauthorized distribution, display and reproduction of this form, or any portion thereof, by photocopy machine or any other means, including facsimile or computerized formats. THIS FORM HAS BEEN APPROVED BY THE CALIFORNIA ASSOCIATION OF REALTORS®. NO REPRESENTATION IS MADE AS TO THE LEGAL VALIDITY OR ACCURACY OF ANY PROVISION IN ANY SPECIFIC TRANSACTION. A REAL ESTATE BROKER IS THE PERSON QUALIFIED TO ADVISE ON REAL ESTATE TRANSACTIONS. IF YOU DESIRE LEGAL OR TAX ADVICE, CONSULT AN APPROPRIATE PROFESSIONAL. This form is made available to real estate professionals through an agreement with or purchase from the California Association of REALTORS®. It is not intended to identify the user as a REALTOR®. REALTOR® is a registered collective membership mark which may be used only by members of the NATIONAL ASSOCIATION OF REALTORS® who subscribe to its Code of Ethics.

Published and Distributed by:
REAL ESTATE BUSINESS SERVICES, LLC. ® a subsidiary of the CALIFORNIA ASSOCIATION OF REALTORS 525 South Virgil Avenue, Los Angeles, California 90020

CVA 3/20 (PAGE 1 OF 1)

CORONAVIRUS ADDENDUM/AMENDMENT (CVA PAGE 1 OF 1)

Did you git it, Paul?

After YEARS of analysis paralysis regarding rent and hold (with BRRRR in mind) my wife and I finally have plans to close this week or early next. 3/2 SFR. Every penny towards our down payment and all estimated rehab costs represents a choice to not eat dinner at a restaurant, not buy our kids the item at the top of their Christmas list, etc. At the end, if we were able to rent it out within two months of finishing rehab we'd be left with next to no money in the bank. However, we were conservatively set to clear $400 per month.

All was moving smoothly when the world got hit with this new reality. This morning my wife woke up suggested we cut our losses and let this one go until things start to look normal again. Financially, our losses refer to $5k earnest money and hours of relationship building with various parties involved (loan officer, RE agents on both sides of the deal, seller). It pains me to think of letting this go.

Anyone else out there weighing difficult decisions? I'd welcome feedback and perspective during this time of great need for connection.

Wow. THIS is what I love about this community! 

@Chris Mason I just might stop by and see you sometime. I so appreciate your words and insight.

@Cassi Justiz Thank you for that simple calculation. It's right there - easy to use on the fly. Much appreciated.

@Eric X. Appreciate you putting it back on me and reminding me that there is no "wrong" way to do this - the right way is the way that works best for my situation and goals.

I've been studying here and listening to podcasts for FIVE years and finally feel as if the analysis paralysis has been broken with my first accepted offer. Even though I'm just beginning this journey it's been a long road to get to this point. I'm excited and grateful for the generosity of the BP community.

Thanks!

Just had my first offer accepted (woohoo) and was planning to put 20% down - but Mr. Moneyman tells me I’ll get a full point reduction on my interest rate if I put 25% down. I’m planning to BRRRR this so does this rate really matter all that much and wouldn’t it be better to keep this cash ($8750 more) in my pocket to use towards rehab costs? Mr. Moneyman is REALLY advising against only putting 20% down but I thought less cash in at this stage was a better strategy. Wrong? You tell me...

🤣🤣🤣

Nobody asked but here is what I received. To me this falls in the too good to be true category having no history with this group I’ve walked away. This was a private money loan for the down on a $19M acquisition of 3 senior care facilities in CA. I’ve “DELETED” names to protect parties involved. Short Term Financing Agreement This agreement between (NAMES DELETED). (The Borrowers) and _______________________ (The Lender) is effective _________________ and outlines the terms of the personal loan for acquisition costs on the (DELETED) Portfolio (See attached Exhibit A for addresses). Description The Lender agrees to lend $50,000 to (CORPORATION NAME DELETED) towards acquisition costs to acquire the (DELETED) portfolio in (DELETED), CA. Repayment The Lender will be repaid the full amount of $50,000, plus an additional $30,000 before the removal of contingencies on these properties on the date of November 29th, 2019. The additional payout of $30,000 in the event of success will come from working capital from (DELETED) Inc. For the duration of the loan, if the contract is cancelled to purchase the (DELETED), the earnest money deposit will be returned directly to The Lender from the title company. We will exercise our contingencies to cancel the contract and return the money to The Lender in the event of cancellation of contract. The earnest money deposit will go directly to The Lender, plus $5,000 from ( DELETED ) Inc. In the event that the date of November 29th, 2019 passes and the money is not returned, the interest rate on the loan amount will be 9.9% annual percentage rate on the outstanding balance. Guarantee The two owners of (DELETED), are personally guaranteeing the return of the $50,000 loan from The Lender. The Lender has the right to submit instructions to (Deleted) Escrow in (deleted) CA for the earnest money deposit of $50,000 to go directly to The Lender in the case of a cancel of escrow. Stakeholders (DELETED) Inc. consists of two officers that have decision making abilities regarding finances, (Deleted) the President and Chief Executive Officer, and (deleted), Chief Financial Officer. Both officers consent on behalf of the company to authorize the borrowing of these funds under this agreement. Agreement If the above terms are agreed to by all parties, sign below to begin the working relationship.

The wealth of knowledge on these forums is awesome. Grateful for the community. Also spent some time talking with an attorney, a few friends/lenders, realtor/lawyer/investor, and of course, the TAX lady. I’m more prepared for the next opportunity. Yes, scary to think someone would go on forum feedback alone. Thanks!

Just getting educated, gentlemen. Just like you before you knew-it-all. Appreciate your time!

I have received a contract outlining a loan I would make to a borrower for 50k short term. Would someone be willing to review the contract and provide some advice and feedback? Thanks community!