All Forum Posts by: Michael Gessner

So I have a property in contract and let me tell you,,,,,, this has been the most stressful thing I have ever encountered in my life !!!!!!!! anyhow, my agent proposed this property to me purchase price $185k arv $370k with a $60k reno budget. Originally I had a lender approve me for the funds and my father was going to borrow the 40% from his annuity, well the lender decided last minuet the property was to rural, then my fathers annuity fund told him he could not borrow since he borrowed many years ago and supposedly it was written as a loan and since he assumed it was not written as a loan it was never paid back. Clearly someone dropped the ball I don't know who. On top of all this my attorney was not at all responsive to any questions I had regarding the contract so I was forced to hand all this over to a new attorney who BTW has been phenomenal This was extension number one. Moving forward I went with another HML who was going to partner me with one of their successful borrowers whose apparently a big flipper in the area and he was going to bring the remainder of the money to the table in exchange for a 50/50 split. I spoke with this gentleman and told him I'm scheduled to close on said date, he says OK get an extension and I will see the property, this was extension number two. It was my impression he was very interested in doing the deal and I was excited to work with a flipper which in return I will receive valuable advice. Well he disappeared I assume he never saw the property, wont return any of my calls nor texts, I mean jeeze just tell me your no longer interested don't leave me hanging TIME IS MONEY !!!!!!!!. So I make the decision to give up on this guy and found another lender this is extension number three, while all of this is taking place the asset manager has been completely against me, it takes days to get any sort of response from them, they originally wanted to close in one week from contract, anytime I asked for an extension it would be for one week only, le me mind you by the time I get the extension a few days have already passed and the last extension I had to agree to $100 per day penalty, BTW I received signed contract from seller feb 22. Honestly they have been hell to work with. My attorney is at a loss of words with the way I have been treated during this deal, apparently I got the short end of the stick because another asset manager failed to sell this property, and two other deals fell through, so I got the brunt of the anger. At this point the asset manager wants a decision today weather are not I am committed to next Fridays closing date, if I am and I do not close I will forfeit my earnest deposit. Besides my earnest deposit I have other financial obligations to this deal, title search, appraisal, attorney and and enormous amount of time. I don't feel comfortable any more with moving forward as so many things have gone wrong to this point and absolutely NO ONE has been able to make a commitment. The contract is in my LLC, so im wondering if I can wholesale it at this point to recoup my lost funds and my time, maybe walk away with something. I think the hardest part about this is having to rely on other people to bring this deal together, and unfortunately I just don't think people are serious anymore. My arrangement with partnering they bring the funds to close and front the reno and I handle all the construction and sale of the property for a 50/50 split of profits, well I guess that's just not good enough for people. Any advice would be great........ Also this was my first deal I was able to get to contract, not at all a good first experience

@James Rodriguez I have an excellent attorney send me a pm

So basicly no as the final c of o was not issued

@Timothy Yen most likely absolutely NOT, have and we're permits pulled to finish the basement and turn the subject property into a multi family ? if permits were pulled and final inspections were not done by building dept then no CO was given which renders it an illegal remodel and if and when they do find out, you will need to cut the remodel and have licensed contractors inspect the work along with the building dept

@Tiffani Guy I'm looking to the same here with little to no money of my own, I did however have the funds and credit score last year to do, and there are 100% 100% HML lenders however I made a huge mistake on a renovation for a friend in florida, that being said if you truly want to succeed in flipping unless you do have friends and family who will actually pull thru on l ending you funds, you really need your own funds and excellent credit to get started, the idea of zero of your own money is a myth, even if you obtain a 100% 100% HML you still need to prove you have funds to cover your expenses and their interest payments. plus you need to bring something strong to the table, I'm a contractor and have more experience renovating homes then alot of people who flip, I'm still finding it very tough to find lenders who will actually pull through on a deal and for a decent compensation. So my suggestion is build as much funds as you can other wise you will be pulling your hair out trying to get deals started. best of luck

handy men are what the title is, they are good at fixing the all around little stuff, next time hire an actual contractor to come in inspect the damage and assess what exactly is leaking weather it be a pipe a toilet the roof etc, then you hire them to fix the leak and then have your "handy man" come fix the drywall.

@Dana LaBerge @Michael Ablan how did you find partners that have the capitol to back you ? I cant find anyone in my network, if they do have funds they rather stay in the market I just don't understand. Now im about to loose a really good deal, HML want ridiculous funds upfront, and really take there time to process the deal. Do not mean to hijack the thread

@Jesse Os if they're not protruding the concrete wall and your semi handy, just go to home depot grab a tub of hydraulic cement and go to town !!!!!!!

@Brandon Benton how long will it take you to save that amount of cash?

@Account Closed Your father is flipping a house, if im reading this correctly,,,,, the first flip took him 2 1/2 years to complete? and this one is taking him 1 1/2 year to complete, no disrespect either he has way to much cash sitting around and is using this to keep him occupied or he has a sick wish to become bankrupt. With that being said if this is the case you need to educate him, this is a way out of debt and to build enough cash savings fairly quickly to be able to buy and hold, in your case with the circumstances you are currently in this may be the only option for you at this moment, IF and i stress that with the largest font possible, you can get him to understand the purpose to flip real estate is to move them quickly. Lets go with the other scenario, if he has that much cash where he can just float by on a flip to keep him occupied, I would convince him to fund your first deal so you can move to reach your goals in life. Have you ever put the numbers on a spread sheet a broken down to him the money he is actually loosing by his method ?