All Forum Posts by: Kwok Wong
Kwok Wong has started 28 posts and replied 63 times.
Post: What Do Experienced Investors Look for When Reviewing Condo Docs
- Posts 63
- Votes 13
@Peter Mckernan, @Greg Scott, thank you very much for you response, now, my question is if you have a condo under contract, do you review the condo docs yourself or go to an attorney or whoever understand the docs?
Post: What Do Experienced Investors Look for When Reviewing Condo Docs
- Posts 63
- Votes 13
Hey BP community,
I’m currently in escrow on a condo in Honolulu, and I just received the condo docs package.
I understand that these documents can make or break the deal, especially for investors, but I want to make sure I’m reviewing them with the right investor lens, not just as a buyer.
So I’m curious:
What do you (as experienced investors) focus on when reviewing condo docs? Or How do you handle them once you receive them?
- What are your top red flags that have made you walk away?
- What are acceptable “normal” issues that don’t bother you?
- Do you have any systems or checklists for reviewing them efficiently?
- How do you handle it if you find underfunded reserves or possible future assessments after your inspection period?
For context:
- I’m purchasing this as a fix & flip.
- It’s a trust sale, older building (1970s era Waikiki), and I’m financing with a hard money lender.
- We already completed our GC walkthrough — it’s a typical condo fixer, around $35–45K in renovations.
I’d really appreciate any insights from investors who have navigated similar deals — especially in older condo buildings or markets like Honolulu where AOAO health can significantly impact returns.
Thanks in advance!
Post: Funding Strategy — Using My HELOC for 100% EMD, Then Refinancing with Hard Money at C
- Posts 63
- Votes 13
Hey everyone,
I’d love to get some experienced eyes on a strategy I’m testing.
I’m actively flipping properties and recently had this idea to strengthen my offers and scale faster:
- Use my personal HELOC to fund a large (or 100%) Earnest Money Deposit to make my offer stand out.
- Once under contract, I’d line up a Hard Money Lender for the purchase and rehab.
- At closing, the HML funds would reimburse my HELOC, allowing me to reuse that liquidity for the next deal’s EMD.
On paper, this seems like a way to:
Present stronger offers and outcompete buyers.
Recycle capital faster between multiple deals.
Keep momentum going even with limited cash.
But I’m curious about the real-world execution and pitfalls:
- Has anyone here actually done this (HELOC → EMD → HML → repay HELOC)?
- Any title/escrow or lender issues with tracing funds this way?
- How do you protect yourself if the HML delays or the deal falls through?
- Would you disclose to the lender that the EMD came from a HELOC, or frame it differently?
- Are there smarter ways to structure this same “strong offer + liquidity recycling” concept?
Can this work to scale flips safely?
Appreciate any wisdom or stories from those who’ve done this in the real life.
Post: Should I Re-Offer Lower After a Deal Falls Out of Escrow?
- Posts 63
- Votes 13
Hi all,
Just wanted to see if anyone of you have any advice on the current situation.
Right before submitting an second offer, another unit(excellent condition) in the same building went under contract, and recently sold for $238K (ARV $320K). I do not know why.
This concerns me because now the ARV could be $260K range. Can this be a valid indicator that requires my offer to be lower?
Post: PML money flow and documentation
- Posts 63
- Votes 13
Quote from @Doug Smith:
We will usually pay out the proceeds in a series of "draws" at various stages of completion. Let's just use an example. Let's say you purchase a lot for $100,000 and you are going to build a home on that property at a cost of $300,000 with an estimated "As Completed Value" of $500,000. We could also you use same numbers for a flip...you buy the house for $100K, renovate at a cost of $300K and get an As Repaired Value (ARV) of $500K. The concept is the same. We'll count that $100K you paid for the property as down payment, so lending you the additional $300K would put you at a Loan to Cost of 75% ($100K + $300K renovation budget = $400K cost and a loan of $300K). We would close and then you would start working on the project...usually advancing your own money into the deal. Then, when you're ready, you tell us "I want to pull some of the $300K out ot cover the work I've completed." We'll make sure you've actually done the work and then wire you those funds to recoup what you have into it. Then you do more work...and we issue another draw...and so on. It's more complex than that, but that's the gist of how it works. When you get the Certificate of Occupancy (CO) and sell the property, you pay back the loan and keep whatever is left. You'll usually pay interest payments each month, though there are multiple variations on what that can look like. Some, at the end, can't sell it or want to keep the property, so it's then refinanced into a longer-term loan like a DSCR loan, etc. Did very basic explanation help you?
From my understanding and in your example, the PML is in the first position. What about second position?
What if I want to finance the fix and flip project using HML (first position), and PML to fund the rest of the deal (second position). In this specific scenario, does the PML wire the funds into escrow? and escrow handles all the documentation? and escrow pays back the PML when the property sells?
I'm a bit confused because I've heard that HML wants the deal provider (flipper) has skin in the game, and not having a PML.
Post: PML money flow and documentation
- Posts 63
- Votes 13
I’m trying to better understand the flow of money and documents when working with a private money lender. Let’s say I have a PML funding part of a fix and flip. Does the money usually go straight to me, or does it always go through escrow/title? I’ve heard that funds are wired into escrow, then the promissory note and deed of trust are signed and recorded, and at the end when the property sells, escrow pays back the lender’s principal plus interest before I see any profit. Is that the correct flow, or am I missing something?
Post: How to write a hard money loan into a cash-equivalent offer purchase contract?
- Posts 63
- Votes 13
Hey guys, I have been convincing my agent to present our hard money loan offers as a cash offers. But, she wants a bank account statement to show that we have the cash on hand. How can we overcome this?
Post: Josh & Tiffany High Results Driven
- Posts 63
- Votes 13
Hey Anthony, have you been able to get more information on the program? I have been seeing the $27 Business Accelerator on Instagram. I am curious if it's worth the time and energy for a new investor to dig deeper, rather than focusing on finding deals.
Post: How to write a hard money loan into a cash-equivalent offer purchase contract?
- Posts 63
- Votes 13
Hi guys,
There's a on market sfh for sale, and the seller wants real cash offer. They rejected our verbal hard money loan offer.
My question is, how do I and my agent to write a purchase contract and absolutely transform a hard money loan into a cash-equivalent offer in the seller's eyes?
And I want to hear all you guys' thought about this whether it's ethical.
Thanks,
Kwok
Post: Should I Re-Offer Lower After a Deal Falls Out of Escrow?
- Posts 63
- Votes 13
Quote from @James Derry:
You could keep the original offer and include a clause for renegotiation after due diligence. Performed your own and then provide a new value based on what you see. I feel that if you go in lower right away, the seller will think it's a type of retaliation.
Hi James, thanks for your response. I am curious, under what circumstances, you would renegotiate a lower offer?