All Forum Posts by: Lance Mundo
Lance Mundo has started 12 posts and replied 25 times.
Post: Non-refundable earnest money deposit
- Investor
- Newnan, GA
- Posts 26
- Votes 8
Sorry about the typo. I meant to type wholesaler instead of HML.
Post: Non-refundable earnest money deposit
- Investor
- Newnan, GA
- Posts 26
- Votes 8
Working with a HML requiring a non-refundable earnest money deposit…
What due diligence do you perform before sending that deposit to minimize risk?
For me so far: my own research for rents, comps and rehab budget
What am I missing that you would add in this preliminary analysis?
Post: Wholesaler search help
- Investor
- Newnan, GA
- Posts 26
- Votes 8
Hello,
I’m looking to be connected with local wholesalers in the Ft. Mayers area.
Post: Deal $ options - what are your thoughts?
- Investor
- Newnan, GA
- Posts 26
- Votes 8
Quote from @Andrew Freed:
@Lance Mundo - Cash at closing all day as long as it'll appraise. With cash at closing, that will greatly enhance your cash on cash return as a result of bringing less cash to the table. You are limited with the amount of seller credits you can receive (I believe it is 2-3%) hence any seller credits you cannot use should be repurposed and be used to reduce the price of the property.
What I will add to this is if the seller offers to fix the item before close instead of another form of concession, never accept that option. Take seller credits instead. The owner is incentivized to do the bare minimum work possible since the seller is getting rid of the asset. Hence you'd be better off getting the funds and finalizing the work yourself since as the new owner, you will surely have higher standards.
Post: Deal $ options - what are your thoughts?
- Investor
- Newnan, GA
- Posts 26
- Votes 8
If a seller is offering monetary concessions to close a deal, is it better to get a reduced purchase price, or apply those concessions toward cash to close?
Post: Help please - help me get creative
- Investor
- Newnan, GA
- Posts 26
- Votes 8
I'm preparing to make an offer on a home that is currently under mortgage by the owner. He is selling FSBO. My idea was to get creative with the financing, and offer him several options for the deal. I'm pre-approved for a DSCR and conventional loan. This is an income producing STR/vacation home.
My ideas for options are:
1. DSCR with seller carry back of the down payment, at 5% for 25 years, with an option on my part to pay in full after one year.
2. Taking over the loan subject-to, and paying his equity stake as a seller financing at current market rates.
Would anyone have an example letter of intent/contract for something like this that they would willing to share?
Is there a different option that I could offer that would include giving him full asking price, but in creative terms?
Post: STR Insurance & Flood Insurance
- Investor
- Newnan, GA
- Posts 26
- Votes 8
How is the market for obtaining STR and flood insurance in the FL Panhandle now? Prices gone up? Policies being canceled?
Post: Proving 750 hours for deductions
- Investor
- Newnan, GA
- Posts 26
- Votes 8
@Michael Plaks Thank you, all of that make sense.
Post: LTR Search Criteria - Advice please
- Investor
- Newnan, GA
- Posts 26
- Votes 8
@Chris Davidson Thank you. That's the kind of input I was looking to learn from. No unicorn hunting here...I will review and adjust the criteria...and do some more thinking about it.
Post: LTR Search Criteria - Advice please
- Investor
- Newnan, GA
- Posts 26
- Votes 8
Quote from @John Hernandez:
That sounds like a reasonable search to me. Just a quick glance on Zillow in the SW ATL area shows a lot of prospects. The problem you may have is much like I do when looking at Houston or Chattanooga is sellers are still overpricing the properties for a turnkey option. They want premium money in an inventory glut market with high loan costs. It isn’t going to sink in until they are carrying two mortgages and get motivated to sell. If you find a rehab option at a good price, make sure you get help with the estimates of construction/rehab as this can make or break your deal.
Thanks John.