All Forum Posts by: Justin White

Do you have multiple properties like this? 

If so, you could bundle them and get a commercial loan. Commercial lenders are used to dealing with LLC's too.

When you say bail on your 401K, do you mean withdraw funds from your 401K? The reason I ask is because there may be major tax consequences on withdrawing money prior to a specific age. 

Some 401K plans allow you to borrow money from your plan (not withdraw), you could possibly use that money on a down payment for the 60K house.

As for is a property like this worth the investment, I believe more information would be needed. What is your long term goal for this investment? How much deferred maintenance is needed in the near future? What is the rental market like in your area? What would you need to do to make it rental ready?

What type of loan? You would have to do a 20% down conventional loan, any loan officer should be able to help you with that. 

Hi Rashad,

I would talk to the local/regional banks or credit unions in the area where the property is. Usually if there is lower end real estate around, maybe one or two of the local banks or credit unions will lend on them.

Hi Marcio,

I would listen to a few podcasts that are out there concentrating on flipping houses, and get involved locally. If people know you they are MUCH more likely to lend to you.

Hi Joel,

You can have the deed signed in counterpart, then once you have both signed deeds match them together with the notaries and record at the county.

As for the quit claim deed, I know all states are different. In CA we would only use a Grant Deed for the purpose of what you are talking, not a Quit Claim.

You would also want to put a clause on the Deed something of the sort of "This deed was prepared for counterpart signatures, consisting of ____ parts"

When purchasing a flip make sure to ask about a title insurance binder policy. This will save you money if you are reselling in the next few years.

HI Greg,

I don't have any experience in New York, but I know around here HELOCs are very common and the easiest banks to deal with are local banks. I suggest going into some local/regional banks or credit unions and see what they can do for you.

HI Scott,

Sounds like a sticky situation.

1. I am with you in thinking it is a good idea to NOT make the payments to the 1st or 2nd mortgage on the property. I know from experience the lender will not even start the negotiation process for a short sale until there are a few backed payments. As for the bank threatening foreclosure, that process is very lengthy and they would rather negotiate either a short sale or Deed in Lieu of foreclosure, but in order to get to that position, you will have to stop making the mortgage payments. I personally would push for the Deed in Lieu, this would be easier for you as the seller of the property, less hassle overall compared to a short sale.

2. In my experience, the 2nd lender during a short sale takes such a nominal amount it shouldn't really make a difference. From the negotiation standpoint, this makes it much easier! Rather than having two points of contact for the short sale negotiation, you will most likely only have one.

3. Well your credit will be killed with any of the outcomes if you take the 2nd route because you arent making the payments. As far as I am aware, and I am not an attorney, the lender can only try to come after the collateral that is secured by the loan. Which would not be your condo. Assuming you arent trying to refi or buy something on credit like a car or get student loans, only your credit will be affected.

Do you know if there are any other liens on the property? If there is a Federal IRS lien on your hawaii property, that will need to be paid off in escrow or taken into account for the short sale negotiation.

Hope this helps

Hi Katrina,

Good questions. I can almost guarantee it will be a Deed of Trust that we will be putting on the property for a Seller Carry.

Keep in mind that the title company will need to have something from the seller on the 593 forms. Which means that if the sellers are not taking a loss/zero gain, claiming as principal residence, or doing a 1031 the title company will have to withhold for capital gains and send to the FTB upon closing. 

The one other option that exists would be if the buyer and seller are willing complete the 593-I form, this means that the Buyer is responsible for sending part of the monthly payment to the FTB every month, which will be credited to the seller at tax time. This is pretty labor intensive each month for the buyer and the seller has to give all of their info (SSN, mailing, etc) to the buyer for submission each month, which most people are not willing to do.

I know this doesn't address your question on foreclosure, but I do not have much experience in that area.

I Hope this helps.

Hello Everyone,

I found what seems to be a wealth of information for someone who likes playing around with numbers on Excel.

http://www.zillow.com/research/data/

Sort, Plot, and you can have some awesome graphs for different areas. A lot of the numbers go back to the 90's.