All Forum Posts by: John Clark

Quote from @Jared Anderson:

Should a wholesaler have proof of funds letter and an offer letter or is the purchase and assignment contract good enough?

I will not consider a cash offer without proof of all needed funds up front and I tell people that before they make the offer. I never hear from 99 % of them again.

As for mortgage contingent offers, I want a pre-approval letter (not pre-qualification) for the needed amount plus proof of funds for the down payment.

I make one exception because I served in the military, and that's VA loans. For those I need to know the financial institution you're working with and I need to like the cut of your jib.

Do both: sue and claim vs renter’s insurer. You might even want to tell insurer you will add it to suit if it denies claim ( your lawyer makes that decision). Document all. Photos especially. 

Quote from @Louie E.:

Good day.  When does it make sense to make tenants pay utilities.  I have this 4-plex on contract and the current tenants have the utilities included in their monthly rent.  2 are paying 650 and the other 2 paying 550.  Which in this case is not cashflow positive.  The quickest way is to increase rent by $50 on the new lease or the tenants pay utilities, divided equally of the 4 of them.  Only 1 tenant live in each unit.

Thank you.

Split out all meters and amortize cost of splitting out to each apt.  Then tell each he’s paying own utilities.

Too long, didn’t read. 

The take away you all should have: all bromides are worthless.

As for boats, I remember the old saying: the two happiest days of your life are when you buy a boat, and when you sell it. 

So in February 2022 son owns house either through an old deed dripping with fraud or through descent (assuming no other surviving children of mother). Mom’s probate will confirm title to son at her death, so it was his to sell in march of 2022. 

he sold to company. Follow the chain of title from there. 

Quote from @Alecia Loveless:

@

I think right now there’s a lot of greedy sellers who just think the sky is the limit and don’t care that their buyers need a return on their money

Why would they? Just like why would buyers care that sellers need a return on their money?

Whenever I see someone post that "I can't find good deals," I translate it as" "I can't find anyone stupid enough to leave money on the table."

I remember the tale about the neophyte stock market player who went to his mentor and said "I just bought a block [100 shares] of IBM."

The mentor responded; "So that means someone just sold a block of IBM, right?"

"Yes, of course."

"So which of you is smarter?"

Greed doesn't enter into it.

Quote from @Tiffany Roberts:

I'm looking for opinions on if I should sell my rentals. I have 5 single family homes and I hate them.

How about selling and buying a six-flat instead? Concentrate the agony instead of spreading it around.

Quote from @Wayne Brooks:

Quote from @John Clark:

Your inability to get a buyer is irrelevant to failing an inspection. Therefore, inspection clause cannot be used to get out of a deal where the real reason is no buyer. 

The seller may or may not pursue you but that is a separate matter. The inspection period is not a “get out of jail free” card. If you don’t hold the inspection AND communicate your results within the time allotted to do so, you are on the hook and no return of your earnest money deposit. You also may have a situation where the seller has an opportunity to cure the defects revealed in the inspection. 

Using an unrelated clause to duck out of your failures as a wholesaler, however, is dishonest. Now you know why people hate wholesalers. 

That depends on the contract language…on the FL standard realtors contracts, it is an absolute “get out of jail free card”, as I believe most other stars are also. Some states do require an actual repair request, with the seller having the right to fulfill it, but those are rare.

 In order to trigger the inspection clause you have to hold an inspection, which I understand the original poster had not done. I also note that you conditioned your response by saying there had to be a repair “request”— which by necessity requires that there had been an inspection. 

My response to the OP stands. There is not, however, even in Florida, an “absolute” inspection walk-away clause, particularly when one never performed an inspection. 

Quote from @Fallon Gilbert:

Quote from @Sasha Mohammed:

this is a toughie. truth be told, there are lenders out there that will do an individual DSCR loan w/ a $55k minimum. Problem is, the fees are going to be SO EXCESSIVE... it may not even be worth it for you to press forward.

i would recommend the conventional route if that's an option. 

I’m trying to pull out cash to invest in some other locations so even if the fees are excessive it might be better than nothing. Do you know of any lenders that do this?

Why not just sell the three toddlers and buy one house in one other location that is worth more? Getting killed on financing fees and having the same problem next time around makes no sense. Take the hit, get a house that is within conventional guidelines and be done with it. 

Your inability to get a buyer is irrelevant to failing an inspection. Therefore, inspection clause cannot be used to get out of a deal where the real reason is no buyer. 

The seller may or may not pursue you but that is a separate matter. The inspection period is not a “get out of jail free” card. If you don’t hold the inspection AND communicate your results within the time allotted to do so, you are on the hook and no return of your earnest money deposit. You also may have a situation where the seller has an opportunity to cure the defects revealed in the inspection. 

Using an unrelated clause to duck out of your failures as a wholesaler, however, is dishonest. Now you know why people hate wholesalers.