All Forum Posts by: Jake Kucheck

July.

... then the late Aaliyah would advise you to dust yourself off and try again.

But how does this work with regard to selling your flip to your end user? If your first buyer is not able to obtain financing (fairly commonplace) yet refuses to sign a cancellation (less common), then what do you need to do to sell the property? Can you simply open escrow (presumably with a different escrow company that has no knowledge of your first escrow) again and close it like there isn't somebody with a claim to the property?

Do you open yourself up to (non-frivolous) litigation by doing this? Is the claim the first buyer has to the property valid? Would the second escrow company have any trouble recording the closing (I'm thinking this would be the case if a Lis Pendens is filed)?

If any of you have previously dealt with this, would be great to hear about your experience.

Sell on QCD to cash buyer at heavily discounted price.

It amuses me that when first reading this, my initial response was "Man, its really annoying when people view their house and the surrounding neighborhood as a place to enjoy. So damn inefficient!"

It seems like you think talking with your neighbor won't work. Well.. you will be talking to him one way or another if you employ any of the strategies used here, but the context in which you have this conversation can be very different. I think K. Marie Poe has the most rational approach, and mine would be very similar.

Honestly, it sounds like you are a bit intimidated. That's not a good thing as a landlord. If you can't be assertive about a bunch of kids playing basketball and ruining your tenants car, what are you going to do when your tenant (fill in any of the 742524048 things that tenants do that are 10 times worse).

Lastly, I'm a bit confused on what you mean by parking pad. Do you mean driveway? Is this an SFR? If there is no HOA, and the dude is putting a portable basketball hoop on YOUR property, you can simply remove it. If it is on his property, but still affecting your property, I bet you could probably move it a few feet so it wouldn't be an issue. Without knowing what the set up looks like its hard for me to say, but this really doesn't seem like it should be a major issue.

$800 a month? Shoot... you can get a house in Flint for less than $800 total!

Not sure I can let the Goldman analogy slide. Being a market maker while simultaneously being a profit driven, publicly traded company with responsibility only to its shareholders, Goldman is in a much different position.

That said... I would never invest with them, but I also don't blame them for generating profits by any means necessary. That's the only reason they exist.

As an out of town buy and hold investor, I can say with 100% certainty I would not buy something you view as being one of the most dangerous streets in (fill in geographic area).

The fact that you would potentially put yourself in harms way to secure a deal that you would need to swindle your end buyer on raises much larger questions about your priorities.

You guys are splitting the smallest of hairs.

There are two types of loans:

Purchase money and refinance. Both are new loans so that's not a distinction to make.

Purchase money is fairly simple- you are using the loan to purchase the property. You don't own the property prior to the loan funding.

Refinance comes in two flavors- cash out and rate/term. What the OP is trying to do is a cash out refinance. The distinction is that he is starting with zero debt as opposed to paying off an existing trust deed and replacing it with a new one that is bigger.

As for the initial question- you might be able to get loans on one or two of these, but probably not all five. That is going to be ratio and lender dependent. As I believe Jon was suggesting, you'll have more like with CUs and smaller lender's that keep their own stuff than the sell and bundle institutions, because this is an outside the box type deal. You might also look into CCing the five properties... you'll likely pay a higher interest rate for this, but debt is sometimes better than no debt (until it isn't).

For months now, all I've heard is "inventory is drying up due to the election."

Well... we're past that now. Wall Street has certainly made its opinion known (Dow is down 2.4% as of this writing). I'm hoping that in some small way, the punditry and excuses that have prolonged the drought of homes that come to market will cease... but I've seen too many other false promises not come to fruition.

What say you BP? Do we think there will be a large influx in homes coming to market? A small increase? No change? Only time will tell...

Probably an important distinction to say that while it is certainly a RESPA violation to pay a referral fee to an unlicensed person, it is not illegal to pay for marketing. If you are receiving leads that you pay for, regardless of whether or not they close, that isn't illegal. I'm not sure if that's what you're doing, but that would be a way to operate within RESPA.