All Forum Posts by: David Mitro

@Mark Gallagher Thanks!

You live and you learn. I should have moved on to the next guy as soon as he tried to get me to pay a $400 retainer for legal services that I didn't ask for, but he came referred by a mortgage broker that I trust.

@Mark Gallagher

It says, "Prepared by and return to:" with his name UPI no. etc in the top left corner of the mortgage.

I wasn't sure if he would give me a difficult time by saying that I am not authorized to use the documents for different properties. 

@Wayne Brooks Right. So, paying $375 for two documents means they are mine to do what I want with. I didn't rent the documents. I purchased them. That is how I see it at least, but of course I am going to see it the way that benefits me.

I contacted an attorney a little over a month ago to draw up a promissory note and a mortgage that I could use for a private money loan between my lender and I.

Initially, he requested a $400 retainer to begin work on the documents and for legal advice. I responded that I simply needed two documents and no legal advice so he lowered the amount to $375 for the note and mortgage.

I notified him of the address and loan amount to finalize the documents when I got a property under contract. He emailed me these documents in PDF form. I had to back out of the deal due to structural issues and told him that. I asked that he email me the docs in a way so that I can edit them and he replied that he would rather edit them since his name is attached to them.

Today, I get a e-mail from him saying the additional charges will be $30-$60 to edit and revise the documents. So $30-$60 to change the address and the loan amount.

How would you reply back? Do I own the documents? I feel that I paid $375 for two documents and they are now mine to do what I want with, including using them over and over again for additional properties.

Thanks everyone for the advice. Since the lender is a relative we should be able to do a secured loan for 20% over the purchase price and an unsecured loan for the additional funds needed. I was worried about her Self Directed IRA not allowing unsecured loans, but I was mistaken and they do, so problem solved.

Got it.

Thanks @Greg H.

Greg H. What exactly do you mean they get the language right only half of the time? Can you elaborate?

Wayne Brooks Got it. So my private lender could issue 1 loan of $121,800 secured by the property and another loan for $30,000 we'll say for additional rehab costs that is unsecured and has no ties to the property. Regarding the 3 month waiting period, is that before I can enter into a contract with a buyer or go to settlement? How is this enforced? Is it simply me finding a broker/lender that will agree to entering into a contract before 3 months, but closing until day 91?

Wayne Brooks so what do rehabbers do who use financing? Whether it is private or hard money, isn't a mortgage placed on the property for the purchase price plus rehab costs? Is this just Fannie Mae properties and if so, does that mean they have to stay away from those?

I made an offer on a Fannie Mae property via Homepath earlier this week and I heard back on Friday that my offer was accepted for $101,500. I am borrowing around $150,000 from a relative's IRA to fix and flip it. They added this clause to the contract: Grantee herein shall be prohibited from conveying captioned property for a sales price of greater than $121,800 for a period of 3 months from the date of the recording of this deed. Grantee shall also be prohibited from encumbering subject property with a security interest in the principal amount of greater than $121,800 for a period of 3 months from the date of the recording of this deed. These restrictions shall run with the land and are not personal to grantee. This restriction shall terminate immediately upon conveyance at any foreclosure sale related to a mortgage or deed of trust. Now I know if I was going to sell to a FHA buyer I would have to wait 90 days anyway, but not being able to place a mortgage on the property for over $121,800 baffled me. I won't hear back until Monday, but I was wondering if anyone else has dealt with this or has any suggestions/recommendations.