All Forum Posts by: Jonathan Key

@Marvin S. Here on BP one of the things I really enjoy is there will always be several different solutions present to particular situations presented such as this one. So here is mine:

Walk away from the deal.

You are worked up and "BEYOND pissed"....for what? Sure, you have a crappy real estate agent. Lots of fish in that sea. Go get a new one and let them know how YOU will be doing business and make sure they fit your mold first. Then find another deal, heck find 2 deals! 

The thing that attracted me to the real estate business is this: it's not personal, it's just a house. The people involved are the personal side, but it's still just a house. Add all the bad words to your deal like mold and 110k worth of repairs...for what? Why the stress?

Just my opinion...best of luck to you and your wife and let all us BPers know how things turned out.

I agree with Jeff, you (we) need more details. I shop real estate online daily as well, so I looked at the link. Something doesn't add up in my opinion. I would get an appointment to inspect the property personally. And if you are not versed in home inspections bring somebody who is. I do this all the time, not to look at it to buy but to see what is wrong. My first look tells me the owner either 1) needs the money. 2) there is money he needs to put into the property and does not want to - so he is selling. 3) BOTH. 

Again, just my opinion. Please let everyone here know how it works out! Good luck!

@David Krulac Oh my God....that's insanity!! Of course Congress getting involved in something and issuing laws and regulations usually results in insanity, so I should not be so surprised.

I wish you were in Texas!!

Wow! GREAT tip for us newbies, especially if doing a private transaction. What is the easiest or best way to go about doing this on a property I am going to purchase?

@David Krulac Great response and excellent points. I totally agree with you and I have podcast #82 next on my listening list.

But as I (loosely) understand Dodd Frank, if an individual (or REA) privately sells/finances fewer than 3 properties a year they are not considered a "Residential Mortgage Originator" and would not be subject to DF, correct?

Example: I know a local a private contractor that rehabs and flips houses. He pays cash for the houses he wants as projects for his crews to rehab so he can flip. But he also ends up getting work for big money jobs in a wealthier neighboring city (more than he would make on the flip). The houses are partially rehabbed but he can't hold them as such so he sells and finances them to me to finish (I buy and hold these properties for long term high cash flow). As long as we are not doing more than 2 of these a year than technically we are out of the Dodd Frank reach, correct? (I understand any response or opinion does not constitute legal advice)

Great post, great discussion!

@Andy Mink You and I are of the same opinion. I like your motto "Make as much as you can, spend as little as you have to." That rings very true to my approach to real estate investing. I look forward to seeing you on BP!

@Doug McLeod See....I learn something here every day! What a great solution and you get to leave the banks out of it! With most hard money lenders wanting 12-14% your solution allows more profit to stay in your pocket. Thanks fellow Texan!

@Account Closed Sounds like you are working a well thought out plan. I would really like to hear more about the creative solution you come up with for the refi. Best of luck!

Less than 20% down and beware of PMI. Waste, Waste, Waste!

Keep the property you have and get creative with other ways. It you are cashing out a dime for 2 nickels you will still be in the same boat.

@Mike Flowers Great story, I will certainly make note of that when going to see a property! After all, most usually know they will to buy a property for the right price BEFORE they even arrive!