All Forum Posts by: Cameron Sharp

Market comps are the best way for finding value. Get that from a realtor. Consider with town homes and condos you will most likely be paying HOA fees and that can impact your cash flow. Check the rules with the HOA to make sure they allow rentals and what the rules are. Sadly some investors overlook the rules of an HOA and that can kill a deal. We bought a home in a PUD with an HOA, and the HOA rules limited what we could do in a rental scenario. Lastly, make sure you know all the expenses associated with the property and what you will pay vs. the tenant. Good luck

Welcome :)

I am not an agent but 99% of the time I sell a rehab, I list with an agent . I also stage it. This I have found, gives me maximum exposure. Remember when crunching your numbers, I recommend you factor in 9% off of the sales price. 3% to buyers agent, 3 to sellers agent, and 3 for buyers closing cost. Not factoring the cost of selling with an agent bites Lots of new investors in the butt

As long as you are truthful in the disclosures, you should be fine. The chances of a buyer going through the legal expense to sue you over a re-clogged drain are slim. Most buyers acknowledge they are buying as-is. Follow Ned's advice if your worried about it and get a paper trail from a plumber. In the end it seems hard pressed to imagine a judge taking time on a case over a clogged drain. Unless the issue is something very serious that severely damages the home and they think you knew about it. Good luck

Make sure you set it up right. In most states making money on a property without having interest in the property, you will need a license, or risk doing it illegally. Not only will it save the seller time and money, but let them know you have interested buyers who can close quickly, assuming you do, and the seller should be motivated by the potential of a quick sale. When wholesaling, I have told the seller my partner wanted to be on the contract and take over, they were fine with that. Good luck

I have not had an issue or heard of anyone I know have an issue.

Like what Ronnie said, keep the note in your name and clean, and the bank doesn't have reason to exercise the DOS clause.

The due on sale clause will rarely be a concern. As long as your on the up and up and give the bank no reason to use it, you should be fine. Don't sweat it.

Focus on getting your first deal. Good luck

Pitch your deal to everyone you know who can potentially fund it.Tell each of them it is first come first serve, no hard feelings, but you're in a hurry. L:et them all know you have multiple people looking at the deal.

The first person who says they will do it, have them commit to financing and move forward. The professionals will understand if it is a good deal, it will go fast and they should move fast to make a decision.

bummer about the first lender. I hate it when people do that. Good luck

It could work. Conventional loans will be credit based. The loan officer you are building a relationship will love you if he can write multiple loans. More commission for them :)

Some conventional lenders will have a max amount of loans you can get in a year. Even though you can save money compared to the fees of a hard money lender, conventional lending can take longer and present road blocks. In addition, make sure you get a non owner occupied loan if you go that route. Unless you fully intend to live in the property.

Conventional is heavily regulated and can cause road blocks for what you are trying to do.

Here are some difference between the 2. (from trustdeed capitol bog, no affiliation)

Conventional Lenders

Banks, credit unions and other traditional sources of real estate investment capital are highly regulated by state and Federal laws, closely monitored by both their shareholders and executive boards and almost completely unable to fund a deal that is, in any way, unusual. While conventional lenders are ideal for the average homebuyer who will purchase a single-family home with a down payment and a conventional payment schedule, they are singularly unable to deal with multi-unit properties, development deals or other complicated investment opportunities.

Hard Money Lenders

Private, hard money lenders are a completely different animal. They are typically seasoned business people, often with a specific real estate background, who understand the need for reliability, versatility and speed. More importantly, hard money lenders do not answer to anyone but themselves when a decision needs to be made. Of course, their real estate deals are covered by the same safeguards as conventional real estate loans but, in terms of unusual investment deals, hard money lenders are infinitely more flexible than standard lending institutions.

My question is, is this process being found by others in your areas? The bidding at autions doesn't allow any escape clauses in the contract at all and requires a proof of funds letter from your bank. Any advice?

Depends on the auction company/site you are using.

Some auctions will require large reserve down payments that are non refundable. Some do not. If you are using an auction as a new investor, I would recommend not, until you have a good handle on the game. Last thing you want to do is lose money on a deal that is bad, or a deal you can't buy in the first place.

Another thing is, if you do use the auction, have your financing in place first. Some auctions require 24-72 hr funding and you will need a lender ready to go. Most lenders will require some time to do diligence, appraisal, and draw docs. Until they know you can perform successfully on a deal, they will not be quick about funding auctions.

Have your POF ready whether it is an auction or conventional purchase. It will most always strengthen your offer.

Good luck,