All Forum Posts by: Jonathan R McLaughlin

Replied 23 hours ago

Thank you- I just saw the bill which spurred me to ask about any leaks etc. They say the toilet is running so I will be checking this- The lease is up and they wanted to leave as they have 2 kids now and they said the place (2 bedroom) was too small-

Problem Solved!

Despite the layers of banking lingo, at the end of the day the bank will accept a price that works for them. Their internal needs and policies change all the time. It is much more systamatized than back in the day when there were waves of these and banks were scrambling.

Not exactly sure where you are in the transaction, but you can definitely lower your offer to account for the fee. They may or may not accept it. They may refuse it and come back to you, they may go to another buyer, they may put it back on the market.

If you choose to lower, I would definitely put something on paper describing how the total cost cannot work for you and offering some evidence. It might serve as a CYA for a banker to have that in the file.

Bruce is right:  by pick up the job I meant it seemed like things were in the demo/opened up stage and someone could inspect and triage without having to undo too much work. @Bruce Woodruff don’t  know the local rules at all, but hoping an inspector at this stage could give a go ahead or remove to a second contractor? 

when you stop the relationship, don't fall into the trap of letting him go back to work on the project. I have seen it a bunch where people try and get them to come back in hopes of things getting better instead of pulling the plug. The money you spent is a sunk cost.

A little good news here is that it sounds like you are in a spot where someone can pick up the job without having to undo things.

@Armando Carrera yes, less income is always a problem for lenders. How much of a problem depends on how much of that income has to go to cover debt. 

@Justin Brown if u get a credit card to fund this that will show up as debt that has to be repaid, temporary zero interest or no, so be careful it doesn’t screw up your ability to finance.

But the larger issue is the idea that you should be able to do this with no money out of your pocket. You want an investor to take all the financial risk while you take none. And for what? Not a very appealing proposition even if you had more experience. 

The folks that attract money spend a LOT of time thinking about how to protect their investors. 

@Justin Brown holidays are coming up, pull a bunch of overtime and weekend retail/package shifts for the stores/delivery centers that need it. Good short term money and perfectly timed for your situation.

@Jim K. I had it she had accounted for some maintenance and capex but looking back I think you are right. I do stand by the advice not to panic and take your time to figure out the best course of action.  Just after the sticker shock of a reset is probably not the time to rush into a decision. 

 Not sure how she is amortized and if she can go to a 30 year? Is there a balloon? How much equity and how much chance of appreciation? Not sure if this is a cash flow first/only kind of property or an owner occupant quality one. There are some properties I would look at that almost break even and think its nothing more than an assets under management fee and some I would run screaming from.

And I agree with your plea to pay attention to the long term not-so-invisible expenses, might not be happening here. 

Check to see what your plan offers for primary home buying loans…some have up to 50k with a 15 year amottization

free fence!