All Forum Posts by: Glenn Espinosa

Thanks Will Barnard. #1 is the route we're taking because at this point I feel as if the seller is looking for any and all reasons for me not to close. The second escrow is a little costly but definitely not a deal killer. I guess this is why we put cushions into our estimates.

I'll let everyone know how it goes. Thanks again.

Wow, that sounds like a steal of a deal if your ARV numbers are correct.

I would get some GC's out there to put bids on the rehab. Pay them a little for their time since you won't be hiring them yourself. Get the bids in writing and present them to the investors. From your description I think $80k is more than enough, although I don't know the sq ft nor have I seen the house myself. If the bids are substantially lower than $80k you could support a higher sales price from your end buyer.

Wow Jon Holdman. When you lay it out like that you make it seem like I should be doing more, LOL!

Sell it for as much as you can get.

But seriously, I would take 15% of the ARV and use that number as my end buyer's profit. From there you can reverse calculate what you could be selling it for.

How much do you have it under contract for?

No sleep, no weekends, use vacation days to look for houses, hire birddogs, network with wholesalers, go to REI clubs and network, hook up with a realtor, craigslist, talk to portfolio managers at local banks...

Im deployed with the military and I've closed on 2 deals in the past two months. I have people on the ground who also work full time jobs but we've made it happen using some of the techniques I mentioned above.

My first flip:

Purchase price = 29k. It had offers for 10k over my price one day after my contract was accepted. I guess my timing was spot on as my offer was on the table within hours after it popped up on the MLS. Oh, and I offered about 3k over the asking price.

Rehab = 28k

Sold for = 111k

The house was a 4/1.5 with 1,000+ sq ft in a B/C neighborhood that bordered an A+ neighborhood. Rehab took 1.5 months and I had it under contract in 2 weeks.

I've been looking for the same type of deal ever since. Some are coming close but that house was such a sweet homerun.

That is essentially what we are going to do. I will look over Sharon's blog post. The extra costs is a bummer but I'm playing damager control at this point. Thanks!

I am asking myself the same question...

Anyway, thanks a lot from all the comments here. In the future I will be adding some sort of special provision to cover my arse. I am quite pissed at my agent/broker/title company about this issue. I told them upfront that we would be using hard money on this deal. Now they call me 3 days before closing and act surprised that I am using a HML. My POF was even from my HML and included a letter stating I was approved for financing.

Something tells me that my hefty security deposit is being targeted in this situation. I could only wonder what would have happened if I did not have the money to buy this house up front. I think I need to find a more investor friendly operation that can meet my needs.

Anyway, heres my current gameplan: I've talked to my HML and what we're planning to do is for me to buy the house outright, then turn around and record a mortgage on the property with my HML. I will be running this through my lawyer but in the meantime, any other suggestions?

In the end I guess you learn the most when you go out there and make the mistakes first hand. :)

Thanks,

Glenn

Ok, so an update. The listing agent has calmed down. He says that as long as we go to closing with a certified check then we'll be fine. I'm going to take out a certified check out from my own funds just in case.

Wow, you'd think the problems would come from finding the funds to buy a house not from deciding where the funds will come from!

Biggerpockets, how do I avoid this? I've started to research about an addendum that I need to start filing?

So my first forray into using a HML has been smooth sailing thus far, or so I thought.

We're set to close on a property this upcoming Monday. When I put my offer in for the house I had worded it as an all cash offer. Silly me. After finding out that we are actually using a HML, the listing agent is now looking to cancel the contract, keep my hefty EMD, and bring us to court for fraud?

If thats the case then silly me.

Now we do have the money to purchase the house up front with our own funds so we can avoid all that if necessary. How can I save this deal with as little headache as possible. I would prefer to keep it a HML transaction but by the looks of it I need to pay for this one up front, which is no problem to me, it just puts pressure on the title companies preparing everything as well as my HML. I'd also need to find a way for my HML to do something on the backend?

And lastly, How can I avoid this silly mistake in the future?