All Forum Posts by: Britt Clark

The bank will want to see your LLC articles of organization you filed with the state. The bank needs to see this to open a checking account. It's usually a one or two page document. They will also need your EIN as well. If you used a service or attorney to create your LLC, they should have provided you a copy of the articles of organization. This is probably what the agent is asking for as well. The reason for them asking is probably to prove you have a legitimate LLC. Just my guess.

 @Tom Keating - I'm looking at much lower loan values than $1mm. I'm looking at properties that are less than $100k.

 @Rich Littlefield - thanks for the advice. I do think this one will get bid up considerably. And, I think it’s a long shot I get it at my price. It is currently listed at $110k and the Zillow esitimate is $198k. I have recent sold comps in the exact neighborhood of $213k and $195k. I have my max bid in mind - considering rehab costs, sales costs, and profit. I’ve personally walked the property. I’m doing more due diligence on the rehab costs.

Are there gotchas from a legal perspective? I know right of redemption is one item in my state of Alabama.

I've also heard the VA can drag their feet with closing. Should I be concerned with the government shut down situation impacting a close as well?

I have an opportunity to buy a home that is a VA foreclosure. I've looked at the property and think it's a good deal if my offer is accepted. I haven't officially made the offer. But, I do have my number in mind.

My concerns are the listing says a quit claim deed will be provided. I don’t like that. 

What are other gotchas I should look out for in buying a VA foreclosure? I want to make a decision very soon as to if I will go forward with the offer.

Thanks

Jaun - something to be aware of if you are thinking of getting into lending as a business. There are state specific laws on lending. I know you are just talking about $1,000 here. But, be aware of the laws if you’re thinking bigger and thinking of this as a regular business thing. I’m not an attorney. But, I have read up some on private lending myself and just sharing.

Disclaimer: this is my personal opinion if I were forming a partnership. Always seek advice of your own attorney or CPA to review your specific situation in detail. I’m a CPA so I had to give that disclaimer. :)

I would be sure to address things in your operating agreement such as who can contractually bind the partnership. This is one of the cons of a partnership people sometimes miss. A partner can potentially sign a contract on behalf of a partnership and bind other partners without them knowing.

It seems you trust your partner. But, I would still advise you to consult with an attorney and make sure you protect yourself. Nobody goes into a partnership expecting the worse. But, it happens.

@Michael Warinner - I applaud you for making a decision and thinking it through. Go for it. But, the one thing I would caution you on is your statement above that you have a “comprehensive view of the business world and basic undertanding of concepts” based on a few college classes at the age of 20. Don’t take this the wrong way. But, you have no idea the sharks you will deal with in business. There are some bad folks out there unfortunately. And, just as you stated in your main premise for quitting school, experience is the best teacher. Take it from a guy who had the hell beat out of him for 23 years in corporate America. I did well. But, paid the price. In short, don’t assume anything. Be smart, plan, and work hard. Lastly, learn how to read people and situations. That’s advice I wish I’d been given at 20 years old. Good luck.

Absolutely brilliant post. There is no easy way to start out as an entrepreneur or investor if that is to be your primary source of income to sustain yourself. It takes hard work and smarts. Even hard work alone won’t do it. You have to be smart and plan your next moves and how to grasp that next “vine” as stated in the original post in this thread. 

Now, I also think it is not very smart to get $75,000 in student loans for a degree that won’t give you a good return on investment. If you choose to go to college, get a degree in something that is in demand.  I’ll use myself and my wife as examples. I got a finance degree and became a CPA. I borrowed a grand total of $30k for all of my education (I earned an academic scholarship too). It has been paid back many times over with the jobs I held. My wife is a nurse. She has no trouble getting a good job because there is always a need for nurses. We are getting a huge return on our investment in education of our time and money.

Lastly, I love the arts and am myself a musician. I currently play gigs for money at least twice a month. But, it’s not a lot of money. I earned my real money from being a finance person through experience, training and education. Now, I left corporate America at a relatively young age and am getting into real estate investing because my first “vine” was picking a decent education. There are other vines and paths. But, that was mine. 

But, keep in mind you'll pay closing costs for two loan events - the re-fi then the HELOC - if you follow that path. I don't like fees. Might be best just to refi and keep some of the cash then and there instead of doing two loan closings back-to-back.