All Forum Posts by: Jason Taken

If you're willing to chance it...get a bridge product going at the outset (will also beat out your 30-year competitors) and then roll the dice with what happens to rates over the next 12-18 months. If they go down you got lucky...if not...well...

But no one really KNOWS what's going to happen long term.

I'm an attorney in Chicago. You can try to settle with them amicably, but if you lose your patience, you can serve a 5-day notice. That would begin the eviction process.

If you're confident they'll pay keep them around as long as you can without putting yourself under. New tenants are a bigger risk when a tenant just has a bad month but is otherwise great.

It could technically happen I suppose. But, when the house were up for sale, or you were to mortgage it...you would quiet title it and be done.

There is a plethora of knowledge in these forums. Additionally, there are a ton of people grinding in some facebook groups. Others have suggested going to meetups. Might be good to partner on your first deal with someone. Perhaps you bring a chunk of the down payment to the table as the value add and they go through the process with you.

Tons of different ways to get it done.

If you’re seeking legal advice just google a local real estate attorney in your area regarding the process. State specifics vary and so it’s not a one size fits all. And some real estate contracts don’t even have attorney protections within them. So make sure you know what you’re signing before you sign it. 

A real estate attorney should also be able to help you with the title aspect. 

Definitely a local bank if you can get it. If that's not in your time table, there are several lenders that can at least get you closed and then you can refi down the road. Really depends on your situation but if you have the time, your local bank or a credit union would be the best solution. 

A lot of investors throw their properties into LLCs as a way to shield themselves from financial liability and also open the door to non-traditional financing. 

Be careful in taking any action outside of court. In Illinois, a common-law lien is created on their personal property and any action outside of the court process (like changing the locks or what is called "self help") could result in that lien vanishing and you unintentionally relieving the tenant of any rent obligation.

______________________________

Jason Taken

Managing Attorney / Owner @ Taken Law LLC (taken-law.com)

Principal @ Jaken Finance Group (jakenfinancegroup.com)

Seamless way to would be to have the LLC in the state of the property. If you are "transacting" in a state, some states (mine in particular - Illinois) require you to file an "authority to transact" business which in some cases costs more than the LLC itself. Best to speak with local counsel on your most cost effective options.

Your concerns are valid. Communication with the lender is crucial for your inspection. As far as inspection costs, your detailed scope of work will dictate what you're owed at the draw. If you need to draw 10k, you should be able to show us 10k of work. Receipts/invoices/that you actually spent 10k.

As far as timing, we do 3 business days in and out, then wire funds next day.

I believe this to be typical across the industry. 

Again, valid concerns but could all be addressed up front. It's not typical though, that you will be paid upfront. 

To start your flip, I'd encourage you to have the 20% down, 2-3% origination, 1% for other fees, 6 months of reserves (no seasoning), and at least the FIRST draw amount ready to go. (30k rehab, hold 10k for the rehab)