All Forum Posts by: Caroline Gerardo

False.

When an entity or a human has capital gains you owe Uncle Sam.

How will you vet and continue during the years of ownership to verify who is an American and what percent the mix? Typically when you sell the title company requires forms to state if you are foreign or not, your ID, and they want to send 15% or 10% or (20% for long term) to the IRS at closing.

You ask because you think the LLC protects anonymity, but not from taxes. You also owe transfer taxes which vary by state and county.

I am not a CPA I am not an attorney this is not tax advice.

I'm in MD, office in DC. DM the complex.

You need:

Condo certificate filled out, master insurance policy declarations page, budget, by laws, contact email for HOA manager who answers, borrower with 43% back end ratio, borrower middle FICO 670+, borrower with 2 years same income stream, the money in the bank past 60 days

then it's easy to choose the best lender. I will give you some names

@Account Closed they charge for a class, get photos taken at the valet with someone else's luxury car or photoshop in a jet, write a twenty page book and become a zillionaire without even investing.

Nothing easy or cheap or cuts corners or cheats is going to be the road to fast fat money. 

With 30% down your options are thousands of lenders.

Why is it unwarrantable- master policy not enough coverage; low occupancy rate; HOA reserves; cannot be rebuilt or repaired; pending lawsuit in the less than 10 year after built for construction defect; flood zone with no flood policy...?

The reason for the fail determines where you can place the loan. What state? High rise? 

You need a great mortgage broker who has these options, a big box bank lender does not have the choices to broker.

Here is the HUD list for Virginia and some reasons why rejected. The HOA has to do reporting and there are some legal ins and outs that the person at the HOA management company is not so, how do I say, genius at fulfilling.

https://entp.hud.gov/idapp/html/condo1.cfm 

 Servicers have data tools that run all the accounts and flag ones where insurance or title is not a match. This takes seconds and costs pennies to run the reports for hundreds of thousands of loans. This is NOT where a paper file is in a drawer and manually pulled. Anomalies are put on watch lists and reviewed for valuation. 

Have you ever made an insurance claim? Name the company who cut you a check in your name?

@Bruce Woodruff what Frank wants is the price to hire guys standing outside of Home Depot at 5:30 AM. What you know is those guys don't have tools, a car, a license... Maybe they are okay to be watched while they work in the garden but don't have the leadership, knowledge, math, connections, skills... They cost $30 an hour now, was $20 before Covid. Owner needs to pick them up in his truck every day, pray that there are no parts to return needed and unavailable, watch for the health and safety of every grain of sand, serve food, motivate, problem solve and never cry.  

Maybe Frank can find a GC who will do this. I expect the delays will mount unexpected costs and Frank will be hiring a series of GC's who lien the property after they quit. 

How hot is it in Phoenix @Bruce Woodruff  I moved to DC, having fun in the weeds of multifamily.

@Frank Greg  Look for someone young and hungry. Pay them $180 an hour and monitor like a mom, and both the owner and contractor will learn.

A Local Realtor to the property can do a broker price opinion, cost varies.

OR Pay for on of the 100's of AVM services

Depends

DSCR CAN be a NonQM loan where they always disclose.

If you are an experienced investor who owns and operates a business some lenders classify yours a commercial loan (the same as high rise office). You have to sign and demonstrate you are a business. This is not the same as a conventional loan where estimates are many pages, sent before day three, resent when you lock, and again before closing to protect a consumer who probably only does a mortgage loan a couple times in their life.

Hard money and business purpose loans send an email term sheet which generally tells you the rate and points which can change after the appraisal and details become real. 

Call and ask them to email you the terms before you pay for an appraisal and get a better understanding of who they are and what they do.      

Insurance is not the same rodeo anymore. Hazard insurance is difficult to bind in many states.  Getting a policy takes weeks in the trouble states with fire/hurricane/floods. It is normal to ask you to get your insurance broker to give a written cost on day one then the declarations page and ins and outs of the policy BEFORE loan documents are ordered. 

Comparable sales is how the value is determined. Look for similar square footage, close by sold last three months. Or ask a realtor to give you a range. 

It is VERY dicey to try and get a loan mid stream if you run out of money. The reason is that subcontractors can lien the property and title can be clouded.

You also need to know IF you qualify for x dollar amount that you target. How is your credit, income, other liquid assets and how will those stand up in a year or two when complete?

@Dan H. answer is detailed and correct.

The cost to convert your garage to ADU is not equal to the comparable sales which is what is used for an appraisal.

If you want to put your Mom on site to help her and the goal is not for financial reasons it will make sense.