All Forum Posts by: Caroline Gerardo

Max rate is 22% ?

@Account Closed 2008 estimate? its 2024. Say the buyer filed BK and fools with the title for two years (I've seen that). 

Be factual. Tell them your MORTGAGE middle FICO not the consumer one so they don't run your credit. State, number of units, current condition. Have comparables that are real. Know the valuation. Know the Class type. What net income you show on IRS past two years. How much liquid cash you have. What your goals are.

Lenders don't need your social security number, DOB, or private information to provide a written quote. The quote is subject to verifying your facts.

Seller has to pay for an attorney and follow the foreclosure process in the state. If there is an underlying mortgage note they will foreclose BEFORE the seller gets his ducks in a row. Seller loses, buyer loses, tenant gets evicted in long run, property sits with deferred maintenance during the process and neighbors don't like it, bad guys can break in...

Foreclosure for an individual can cost anywhere from $90000- $250000.00 depends how long, what state, all the problems, delays... attorney fees hourly, filing fees, property taxes have to be paid...

Time to take leave from your family and job and go there. Cambria hotel is $78 a night make a deal with them. Do you have his home address? Show up at his house at 6:30 AM in the snow with your boots on ready to work with him to complete. A breakfast burrito for him in your hand. He's going to stammer and be embarrassed and have excuses but you married him, time to get him cooking bacon or if he is mortally injured to release all liens and get someone else started today. 

Others suggest an attorney - sure spend $70000 and waste time in court, that avenue is going to take thirteen months. You cannot leave the subject property half completed. Bad guys will break in and wreck everything. Have Amazon send you security cameras and some dummy ones to the hotel so they are there when you arrive. Borrow a ladder from your GC and install them and practice the app with your phone. Let him know you have someone coming daily to monitor progress and you have eyes on the driveway as well. IF he is dishonest those cameras disappear when you leave town. 

Interview new sub contractors at Modern Builders on 5th/ and Columbus Builders on 3rd/ and Home Depot on Hamilton Rd. The $30000 might be gone for now BUT you MUST get completed. Your Realtor can recommend an honest person to be your project manager- the job requires a notebook, cell phone and to go to the subject property for 30 minutes at different times 7 days a week. This person logs who is working, what supplies are there and texts you - progressing yes or no daily. You are going to have to pay the person by venmo or something weekly to keep them reporting and taking photos. 

The cost to extend your loan may be in the thousands. Carry costs, liability, theft, and weather are against you. It's 54 degrees there today so bring warm casual clothing, work boots, rubber boots. 

Don't respond that you cannot go there. You chose this and you have the guts to see it through. Do it.

Easy Street is a good option BUT you need CASH in liquid checking/savings for down payment of 20% and BIG chunk 2-3 times loan amount to buy out of a prepayment penalty. Don't look for lowest rate, look for lowest cost on fees as you will either refinance out of that loan or sell- the prepay will hit you on the back of the head like a cinderblock wall. You also need the operating cash to do rehab.

I say this because you mention FHA and low money. DSCR is not low money down or low money into a deal.

@Bruce Woodruff yes it could be aluminum or knob and tube for all we know. Probably too many outlets on a circuit and a lack of proper grounding on everything. 

I suggested to Clint to stack some credit cards to have zero rate for 12 -18 months as his cushion for cash. Stacking is high risk and does lower your FICO by 8 points so do it AFTER the mortgage funds, on that morning do four. There are stacking companies on BP who charge an arm and leg for this. I get no affiliate marketing, charge nothing, and guarantee nothing. Here is how: 
https://cgbarbeau.blogspot.com/2024/01/credit-card-stacking....

Note:

Things that have to be fixed like electrical to code, HVAC, drains, foundation (you say the roof was replaced 2018-unknown if true), you have to have a working stove and bathroom do not add any value in an appraisal. The bulk of your cost is labor that is licensed and skilled and not going to come back in rents or a cash out refinance valuation. Since you say it's 1500 feet I'm estimating $71000 of repairs to bring it up to snuff without flooring, painting, making it more appealing or not looking 1960's western. The other rehab is cosmetic and that will have about 50 cents on the dollar valuation to add condition, modernization, curb appeal- actual costs $20000. This assumes the foundation is not cracked or sinking. 

From Gold to White (don't use grey it's outdated)

note I saved one gold chair on the left for 'ole times sake.

Get some lines of credit set up after your loan is approved so you have room to pay everyone. Find honorable, not too over loaded, licensed electrician and plumber. You may need a construction manager (a guy a friend who is organized doesn't need to be a pro trades person but doesn't use or party) to daily boots on site be orchestrating who is on first and that no one steals your supplies. Keep a room inhabitable for him/her to stay. Find a way to have the wifi operating so that person can report daily and a security camera works. Have the camera go to your phone. Keep notes so you learn from each day. There are apps but a spiral paper notebook is fine. Consider this a graduate level masters class with your money. 

 single story 1960's Desoto 1790 square feet is my GUESS, he didn't say... so if larger add zeros

1. permits, drawings, planning desk ok $1500  https://ecode360.com/40188698 know the codes 

2.Get electrical up to code since its all 2 prong outlets and the panel is way outdated.

$9500

3) Demo kitchen and bathroom

$1500

4) Renovate kitchen/bathroom

$44000

5) install new floors

$11000 plus base boards $600

6) input new appliances stove/oven, refrig., microwave, diswasher washer dryer

$10000 plus the GFI and power outlets $300

7) input new light fixtures

$3000

 painting of the whole house

$4100

Clean up $ 400

temporary toilet $500

temp power?

security, fencing, a guard dog inside or someone stays there at night 

$1500

carry cost of your loan/tax/insurance

$?

landscaping the front 

+$

making it have curbside appeal

+$

needs new air and heat and venting

$8000

All plumbing fixtures will not be easy to retrofit, better to rip it all down.

How does the shower pan and tub floor look? Sub floor?

Water drains?

Sewer line? Any big trees on or in water and sewer? You say cast iron- rip all that out and replace NOT reline it will fail in 9 months

Marketing and waiting carry costs

Contractor profit 10%

Or are you handy enough to order everything and replace the electrical panel?

Returns of items that don't work/ don't fit

Smoke and carbon detectors $100

If you really want to make the garage an ADU ask the planning desk now and research if you need separate electric panel - do you need certain parking set backs or a carport? What is the concrete floor like in the garage? Is the slab okay?