All Forum Posts by: Christine C.

I have a property with a signed purchase agreement that indicated financing was to be secured within 30 days. The buyer is past the due date and just notified us that he was not approved for VA financing and is now pursuing FHA financing. He is asking for an additional 3 weeks for closing (move from Aug 1 to August 21.) The understanding is that he has a good job/position, so he should be eligible for conventional (maybe it's a downpayment issue?)

I had a renter lined up before the June sale and have now lost a month of rental income ($750 July) and will lose 1-2 months more, should the financing fall through. At this point, my goal is definitely to sell the property (as it's not one I want to own long term) and I'd like to secure my interests as much as possible.

Couple of questions:

1. any way I can protect myself from another potential delay if I grant the extension? can i ask for some other requirement on financing?

2. any ideas on negotiating my "cost" due to the closing extension (ex, another mortgage payment, insurance, utilities, etc.)

Unfortunately, I only have $500 in earnest should this go south.

Thanks all!

congrats! that is AWESOME :)

As a native NYer who grew up in the NYC deli scene, I just had to put my two (or three) cents in! LOL.

Many NY delis are named for their owner (Katz's deli) or their location (Carnegie deli, 2nd avenue deli) and serve up plenty of franks w/kraut, potato knishes, potato salad, brisket, roast beef, pastrami, salami and corned beef (Rueben) sandwiches, matzoh ball/or chicken noodle soup! (oh, my nostalgic nose is going bonkers!)

When it comes to branding, I like the idea of being direct and simple, something like "Ben's New York Deli"

To be authentic, make sure the menu inlcudes a "side" of NY attitude ;)

Best of luck!

Hi.

I'm taking the Indiana 54-hour salesperson pre-license course right now (online) through Real Estate Certification Program (RECP). It is one of the approved courses, you can find the list here: PLA: Approved Pre-Licensing Course Providers So far, so good, but i'm only into class 4 of 17.

I'm not sure if you are aware but there is a significant shift happening in Indiana with regard to RE licensure. Before July 1, 2014 all licensed RE salespersons who wish to continue selling MUST transition to a Broker license which requires a 24-hour broker transition course. As of July 1 2014, the real estate salesperson license will no longer exist.

So, if you start now, you must complete the salesperson course (54hrs)/pass exam + broker transition course (24hrs) /licensure before July 1, 2014; 78 hours total.

If you begin the process after July 1, it is a 90-hour program for your brokers license. Hope this helps!

Welcome to BP and the Indy community. Our friend taylor jennings has taken it upon himself to pull together an Indy REI group on Meetup! They've met a couple of times (I went to the lunch in November and it was def worth the time, great networking and content!) here's the link: Real Estate Investing in Indianapolis | Get Connected (Indianapolis , IN) - Meetup

you have given me much to think about and i really have to sit down and go through this about 10 more times :)

yes, to comps, next step!!!

Dion, thanks for the feedback! I created 2 proformas (before my family stepped in) one as "OO" owner occupied with 1-unit generating the income ($850/mo...median for 3bdr in this area) and another as the (future) 2-unit rental. Both proformas assumed bank financing and:

a 10% vacancy

prop. taxes (OO homestead exemption; without homestead exemption)

prop. insurance for entire duplex

prop. management (OO 0%=me; 10% when i move out)

maintenance/repairs @ $.50 square foot (entire home sq footage)

unit 1 utilities paid by tenant

OO NOI $437; 2-unit NOI $1070

(debt service @4.5%)

OO net cash flow $21; 2-unit $655

here are the baseline #s:

$85k investment ($60k purchase/$25k rehab est.)

2012 AV $110,000 (sold 8 years ago @$120k)

need to work on getting recent comps but this area is def going up, not down.

I had not thought about keeping all cashflow but rather assumed i would make monthly payments with interest from day 1 (ugh, my conventional mindset!)

I would like to rethink a deal structure that would include my investors exit in 3-5 years.

love the feedback!! thank you :)

Hi BP folks!

I am hoping folks can chime in with their experience (or perhaps creative thinking) to help me create a financing proposal.

i recently found a duplex i want to offer on. I will occupy 1 of the 2 units (refurbing 1 unit immediately for tenant and the other unit while i am living there.) My REI strategy is "Buy and Hold". It is in a good nabe and will be a strong income property when i move on from in it (guessing 2-3 years timeframe); in the meantime i will live for FREE (all in costs, including rehab) while I work on my REI skills and portfolio.

A family member has offered to give me cash for both the home and rehab costs (about $85k total); he is only looking for a modest return on his money or some equity in it (his real focus is to help me realize my first REI property!) He's asked me to propose somethig fair and equitable. The only financing structure i know is bank financing. My lender isn't going to go for a 30-year term, If i reduce the term a lot, my payments are significanly higher and it wont yield the kind of upfront cashflow i'm looking for the first 2-3 years (bascially, for me to live for FREE!) i really don't want to deviate from my "buy and hold" invesment strategy. My lender is open to all proposals. he doesn't want to be involved in the property at all, so i will be managing it. Does anybody have any ideas on how i might structure a deal that is fair and equitable? thanks!!!

Tracey,

Congrats on "jumping in the water"! I'm new to BP and REI and focused on the Indy market as well. I'm currently looking for my first investment - a turnkey SFH or duplex (buy and hold.)

Would love to chat about your new business setup and what areas you are looking in, etc. I'm looking for opportunities to contribute and learn!

Sorry for the confusion (I'm a newbie. lol)

I am looking at the current listing prices for post- renovation, single-family residences in Ftn Sq (because I'm interested in a turnkey property) and this is the range I've found. It appears Sycamore Group handles a fair share of the rehabs in this area. Good luck with your flip!!