All Forum Posts by: Dave Godfrey

My brother-in-law owns a house which he has lived in it for 10 years, using a VA loan. He is now relocating out of state.

Question: Can he rent it out without issue (being that it is a VA Loan)? He is NOT worried about needing the VA Loan Eligibility to purchase the new-home-to-be.

I looked briefly on the VA Benefits website but they only talk about getting INTO a loan... and NOT about a Renting (EXIT) scenario.

Also would the renters have to be veterans themselves? Or could they rent to anyone?

Thanks in advance for your help.

Dave

Greetings BP!

Someone whom I met recently came to me with an offer.   They have a house they are closing on... and they need some $... and fast...

I am new in this lending space... and he said he is new in this type of situation as well.  I'll put the numbers down below... Closing is supposed to be tomorrow!  I just came into the picture today (about 24 hours ahead of closing).  Lots to sort out... 

The pre-settlement HUD says his LLC (only)... as a lender I want to be protected... so can we change the HUD to also include my LLC too at this stage?

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Purchase Price $35k  (my money into the deal)

Rehab & Holding costs (the person who presented the deal's money)  $45k

Total Cost (Purchase + Rehab + Holding Cost) = $80k

ARV $160k

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This is a low LTV from my (lender) perspective... but want to expedite closing but with adequate protection.  If there cannot be not two LLC's on title... are there forms/contracts/agreements that anyone would suggest?   This is a WIN-WIN but we need to push it over the goal line quickly.

Thanks in advance for any help!!!

HI Matt.  Not sure...actually I was curious myself.  

Seems like it could be one tool in the tool belt... but I hope someone can tell us their experience.

Cheers,

Dave

Hi guys. I have a group of three young professionals living in a property. I have a ten page plain-language lease that states the lease will renew for another year if the proper notice has not been given. I received an email today with a two week notice of moving out (so 5/31). He was supposed to give 60 days notice.

He asked about security deposit. The other two guys are staying... but I don't know more than that. I have a the security deposit at a local bank. The bank statement for the security deposit comes to me (I provided the bank with the names of all three tenants when I set it up).

I want to be fair... but I think I want to avoid setting a precedent though too. Overall they have been good tenants in the first year.

Thoughts on how you would handle this situation?


Thanks!
Dave

Welcome @Vallory Clardy !

The BP community is a good resource which you can pose any questions and get answers.

Good luck in your journey... 

Dave

@Robert Weissman

Thanks so much for the information. It was very helpful and made me think some more about the approach.

Hi everyone. I am working with a lender on a renovation project on which there will be draws.

This is my first time going thru this process. He's "flexible and willing to work with me and my contractor". It's a community bank. I do believe he is flexible but want to make sure I don't look like the new guy on the block, so to speak.

A couple of questions:

-- How detailed are typical draw schedules? (Activities, timing/duration, material cost projections, etc.)

--Does an inspector come out and look at the property first (on Day 1, before the project starts... and then comes back at the end of Phase 1). OR... do they just show up in the middle of the project (say, week 3). Stated differently, do they do an initial assessment?

--Material costs... Request a certain % of the entire project up front... OR just equivalent to each Phase of Work. What do Lenders typically do/allow?

--Anyone have a draw schedule that you would be willing to share?

Project specific info:

$50K reno budget (~$25K Material, $25K Labor)

Number of Draws: Lender says 3 or 4 is fine (thinking 3)

2 months turnaround

Early project needs: Need HVAC replacement done right away (subbing this portion out; Labor and materials ~$7K): Need to pay a roofer ~$2K in the first couple weeks also. Bathroom gut job.

Any insight would be much appreciated! Thanks!

Thanks everyone for your insight....much appreciated!!

I did touch base with uDirect today and got a good initial vibe and info.

I have a few decisions to make...

Anyone have experience using their Self Directed IRA for a real
estate purchase?

I have some $ just transferred to a SD-IRA. I am looking to use the funds for a purchase. What vehicle would you suggest?

-Real Estate

-Notes

-Other

I heard that you cannot take depreciation inside an IRA. If true, it seems that it wouldn't make the most sense to purchase Real Estate.

Thoughts?

Thanks in advance for your responses,

Dave

@Rick H.

Thanks for the info, it really helps.

I am meeting with the seller tomorrow so I need to be quick study. You have to start somewhere, right? :)