All Forum Posts by: Byron Brooks

Keep in mind LaQuata that in your heart you know that you may have a good deal.... and that may very well be the case and you give your all into trying to show others your point of view....but some if not most will not see it. Keep in mind they speak with hundreds if not thousands of folks with the same idea and same drive. The moment they think a red flag comes out the deal is done, no more communication. Do me a favor. Do your homework on the property and use all resources available to you. Make sure before you step in that bank that you prove your case. What do I mean by that? Know the market area. Don't try to do deals outside of area that you know. Be the local expert. If you are trying to get financing ensure you know the cost of repairing the home and if you do not know make sure you get a person, people or company that does. Last thing you need is to get in over your head and the deal you thought was good turns sideways real quick because of a costly rehab.

I can go on and on..... but I said all that to say this. These investors/banks have checks and balances in their head when you initiate contact. If you fail one of them (who knows how many they have) they place you in the "other" box. You go in there and have all of your ducks in a row.... real numbers with a strategy they will be more open to your scenario.

I myself am in your boat..... I feel you pain

P.S.

Do what you have to do to get your score above 760. If you need some advice I can gladly help out.... (no I am not broker or sales person- just one who like to share my experiences to help the next) it is a process and not immediate... it does take time but in the end it works out because it will save you that much more money in the long run!

Capital- Trying to get this first deal done and in the books

Mr. Truss,

Reply in your inbox

Hello

Here are the scenario and the players:

Me

Dad

Ms. J- Original 50% equity owner

The others- family members who share 50%

We (myself and dad) bought out Ms. J’s 50% by paying off her outstanding debts. Some were paid off cash, most were paid off in credit. That is why she donated her 50% ownership to (us) my dad. My dad (personally) is now 50% owner of said property.

“The Others” have come to an agreement amongst themselves and has accept our offer of purchasing their shared interest for $133,500. This $133,500 will be split among the 7 heirs. The attorney and title company has the payment schedule that each heir is to receive. Essentially how this is supposed to play out is the money is to be deposited into an escrow that the title company controls and is distributed as each heir signs.

The tenant at residence is already in place. Ms. J will remain in the house as a tenant and pay $1000 per month until she wishes to move.  The lease has been signed for this already and takes effect on June 1st 2019.

Myself and my dad will look into refinancing the loan within 6 months ideally. We will refinance home under our company Wellington Investments LLC. We already have the bank on board with us to make this happen. The bank just could not help us with this specific situation as it currently is structured which is why they recommended going this route (hard money/private financing) to acquire the property. We have also paid the taxes for the past 2 years. We have done some renovation and are prepped to finish. Nothing is out of code and there are no liens against this property which can be confirmed by the title company that we prefer to use since they have been working with us since the beginning of this journey. If possible we ask if fees can be added into loan due to us already investing into paying off Ms.J's debt, attorney fees and title Company fees already incurred to get to this point.

Summary:

My dad (we) acquired 50% ownership of property in February 2019

$133,500 needed to pay off remaining heirs to acquire 100% ownership

We are looking to acquire $210,000 in hard money/private money/financing/line of credit

Deal has been reached with help of attorney.

Title company has already cleared property.

We are not looking to flip this property.

Traditional bank is on deck to refi after 100% ownership obtained.