All Forum Posts by: John Kent

@Ismael Fundora welcome to the Bigger Pockets community. Rehabbing is a great niche for those with contracting skills. Wishing you the best of luck on your REI adventure. If you need a rehab lender referral feel free to PM me.

The name on your offer should match the name on your proof of funds or pre-qualification letter. In general, it shouldn't matter to the listing agent what name is on the contract as long as it is legitimate. Making strong offers  and displaying a solid ability to close will stand out more than the buyer's name. Unless you are a famous celebrity or have a bad reputation of course.

Also note, properties aren't re-titled, they are transferred from one party to the next. Transfer of title may have some additional requirements so make sure you are familiar with the process. 

Here in Central Florida tax assessed value and price per square feet are absolutely useless metrics for estimating market value on residential resale property. In fact, if someone is trying to sell you a resale property and use either of these metrics to justify price be suspicious.  Comparable substitution is the only way to form a solid opinion of what a property may sell for in this market. 

The Inspectagator is investor friendly. They have a website.  

The LLC Operating agreement is where that language goes. You will definitely need one if you are buying real estate from banks or with bank financing. Have a lawyer who specializes in business formation draw up the Operating agreement. This should not be done without the requisite knowledge when forming a multi-member LLC. Be sure to work out a general framework with your partner on how important issues should be considered which you can provide to the lawyer so important considerations aren't overlooked or assumed.

Should you decide that separate LLC's are preferable you can always buy individual properties in a property specific LLC or with a Tenants In Common title splitting the ownership interest of each LLC on title.

Bank of America is a pain but every short sale is case by case. Most title company negotiators just process paperwork. For negotiating short sales for investment purchases you need more than just shuffling papers. 

There is a process for starting during the bankruptcy, however, the bank often does not wish to proceed with negotiations during a bankruptcy unless there is a special circumstance. The biggest thing to worry about right now is the bankruptcy attorney. They often push a deed in lieu or loan modification, some just tell the seller the issue is taken care of and let a foreclosure occur. 

@Federico L. I had memberships with both local REIAs but I let them lapse since I didn't attend meetings regularly. Both are good, although, I personally prefer GoREIA.

You are welcome. You probably don't need a messier contract just a better process. You should be able to get everything done by the end of your inspection period. Are you buying REO for rentals or to flip?

Since you are a local try using Inspectagator for inspections. They are used to working with investors. I have yet to experience a long wait  with them to schedule an inspection on my transactions. 

Also suggested is J Scotts book here in the Bigger Pockets library for estimating renovation costs. On day one of your contract you should have started outlining your scope of work and scheduling the inspection. Finish up the scope of work when you have the inspection report then get the contractors in ASAP for an estimate. 

@Mike Gentry don't accept partial payments. If you don't get full payment start default management on the loan. If for some reason you need to take a partial payment enter into a fully executed term workout agreement with the borrower, such as a forbearance agreement. The distribution and accounting of funds should be detailed in the agreement. In general, with a workout agreement the T&I escrow and late fees are accounted for before the P&I are accounted for.