All Forum Posts by: Alexis Dedrickson

This problem is already being covered by a lawyer, but I want your experience and potential advice, comments, concerns...

A friend of mine found a great foreclosure. He paid $95k for it ($80k on a HML at 14%, the rest on CC- was 0% now blended at 11%)

A family friend/contractor agreed to do the work in exchange for profit- a 60/40 split (this was the best option since my friend didn't really have the funds to pay someone up front). Unfortunately, this man has a huge ego (since he was going to get profits and not a specific amount for his work, he insisted he be added to the deed), and in exchange for setting specific "rules" (ie true budget, time line...) my friend made a more lax contract in exchange for a signed quit claim deed. There was no set timeline (should have been a 6wk project, now 5 mo and counting); the budget was mentioned to be about $30k, but was not itemized and was subject to change...but if this man abandoned the project or otherwise caused harm to it, my friend was entitled to quit claim him off and finish the project himself.

So, of course, this guy slacks off and stops working all the time and starts being a "bleep." He also has started to go over budget. He refuses to buy my friend out at a proposterously low amount because he doesn't want financial responsibilty and has now stopped working and has gotten a lawyer. He is demanding full control of the property and a min $30k in profits before he starts working. He hasn't worked in over 8 weeks.

Obviously my friend can prove that he has abandoned the project and quit claim him off and finish the project himself... but he doesn't really have the money to (it will take everything he has), and he is worried this man will tie up the sale with a lawsuit.

What recourse does my friend have, if any? All he owes this man is money for the labor he provided in doing most of the rehab, but how can he get through this without donating his heart? He feels like this man, who hasn't spent a single penny, has full control. He feels like he has no control, yet full responsiblity for the bills until the house is sold.

I understand what it is like to refinance. I just did one. I need to do another. This property is in my business name, so I can do as many as I want, but right now I only need to refi one. The broker I worked with no longer does residential anymore, so I am looking for someone to help me.

If you know someone who can, let me know. My other refi was for the same amount and I got a 30yr fixed at 7%.

Any suggestions?

I want to refi my rental. It's worth at least $100k and I want $60k. I owe nothing. I have another rental down the street that is almost identical. I refi'd it in June, but it took 3 months and was a pain. It went from being a stated loan to practically full doc. They questioned everything.

I have great credit, but I want to refi it into my LLC. Any tips would be awesome.

Thanks!

single family homes or duplexes
must have basements
will most likely keep as a rental (prefer at least $700/mo)
must be at least 3beds

I prefer to find REOs because of the price, but don't want the street to be flooded with vacant homes. The two I have are north of the city and north of 38th St. I want to keep my all in price to under $60k.

Does this help? I know there are areas east of the city that are a no go...I want average people to rent to...not drug lords and prostitutes! I also don't want a pretty house on an ugly block. I want average. I want to get by with minimal work to create a nice rental.

Or those who invest there and know the area very well.

I currently have 2 rentals in Indy in an area that I really believe is a great area. It's just outside of the city and seems to be desireable for renters and buyers alike. Unfortunately, there aren't always opportunities around there...or at least ones that meet my standards.

Where else in the vicinity would you suggest to be a good neighborhood? It's so hit or miss, and without living there, it's hard to determine.

I'd appreciate your suggestions!

I am not a liscenced agent. I am an investor. If you are not considered a professional you are only allowed $25k in losses (provided your income is less then $100k) and nothing if you make over $150k. BUT if you are a professional you can take as much in losses as you want.

I want to be able to do that provided I need to, so I need to know that I can prove I work more in real estate investing then my job.

Ya you might as well take it cause if you don't the IRS assumes you did. So when you sell you have to deduct that anyways.

I invest in IN and live in AZ. It took some work and phone interviewing, but I have found an amazing realtor, contractor, and property manager. Just sign contracts, maintain good communication, and get pictures!!! If you do it right, it's hasstle free, because they are doing all of the work for you :)

To be considered a real estate professional, you have to work a minumum of 750 hours a year and those hours have to be more then any other job you have. How exactly do you log hours? I was told there is a list comprised of all activities realted to real estate investing that gives the number of hours it takes to complete them. Anyone know where I can find such a thing or have any better ideas?

Thanks!

Mostly just cash...although if I would just go to hard money.... lol...that and worrying about being able to cash-out refi afterwards.