All Forum Posts by: Larry Sarner

thanks for all the responses guys.  It just seemed strange for a lender to want me to buy a policy when the property in question did not even have an accepted offer.  I have no problem paying insurance on a loan I am taking but this sounded strange.

Thanks for the replies.  Jamie, I totally get that a borrower wants to protect their investment.  However, why would I pay for an insurance policy when I don't even have a loan in place?  This particular person wanted me to buy insurance.  Once I had a loan then of course they are going to protect themselves with title insurance and a lien on the property.  This wasn't that.  You are a lender, we should talk.

Hmm.  Yeah, I will have to get some clarification on that.  The insurance policy was something to paid upfront, not title.  Same thing with the other fee.  I'm guessing these guys may not be legit.  I thought it smelled a little funny which is why I came on here.

Hello all,

I have been talking to two private lenders.  One of them requires purchase of an insurance policy to protect themselves.  The other has a fee to originate the loan.  I have no problem with either of these costs as long as it is something that the more experienced investors here have come across.

Thanks for your replies,

Larry

Well done Ryan! How did you find an equity partner?

Thanks everyone for the great discussion. I'll keep everyone informed as I progress with this property or my "next" first deal.

Great reply Will! I actually thought $150k at first. You mention 100% financing, none of my own funds. I am not finding a way to do this. Maybe I'm missing something. With your numbers and a net of $27k, yeah, I'd do that all day long.

Maybe I shouldn't make my offer $120?

Thanks Don. I'm not looking for a home run my time at the plate. Heck, I would be happy to wholesale it, assign the contract..........just to get that first check into my account. Condos in my town sell well and pretty quick but I'm looking for other deals as well.

So I have a potential deal: Bank owned condo 2/2. Recent comps $280-290k. Bank is asking $199. rehab estimates come in at $57-$60k. I'm offering $120k. I'll probably get laughed at but factoring in the carrying costs, cost of borrowing money, etc......I can't go much higher right? Am I missing anything in my logic?
Thanks,
Larry