All Forum Posts by: Aaron Poling

I would suggest speaking with a mortgage company, and a local bank to get their advice. I would be honest with them about what you are trying to accomplish and they should be able to give you one or two options on how to get there. Each one could have different loan products that could work in different ways. My guess is it will be best to get a 80/20 loan on your current home, and use the equity towards the new home. 

Good Luck! Thanks Aaron

I don't have any experience with his coaching but I think his podcast is the best one for multifamily investing. I do like that he doesn't push his training on anyone, and doesn't make it sound like an infomercial. This makes  me think that it is probably training. 

If you move forward with it, please let me know how it goes! Thanks Aaron

I have listed foreclosures in the past and typically there is a time frame that the personal property has to be kept, but only if it is over a certain dollar amount. If the owner is still living there you may have to go through an actual eviction process to kick them out. If the property has been abandoned then you should be able to schedule with a locksmith and a sheriffs deputy to take possession of the home. Once you have possession, put notices on the door with your number to contact. Once the previous owner contacts you try and work out a time and date for them to come get what they want. If they do this, then have them sign off on something saying that they forfeit everything else. This may not be required but will help protect you if there is ever a dispute. 

If you contact a local real estate attorney they should be able to tell you the value amount and length of time that you have to keep the personal property. The sheriffs department or courthouse may have this info as well. 

Good Luck! Thanks Aaron

I think it is a possibility. I would speak to a real estate attorney first, if that checks out then approach the neighbor. If they seem open to it then I would reach out to the trustee, who is typically also an attorney. 

The other thing to keep in mind is to be very careful with the owner staying for six additional months. It is sometimes hard to keep holdover tenants out, and without them doing additional damage. If you go this route then have a written agreement to the terms of the holdover, and how the home needs to be left. Possibly even do a cash for keys scenario where you give them a dollar amount to move and take the personal property and trash with them and leave the property in broom swept condition. 

Good Luck! Aaron

I agree with everyone else, don't do it. An agreement to get paid back if it doesn't close will only protect you if you go to court, and if they would even have the funds to pay you for it. Too easy for something to go wrong. Spend the time lining up contractors, pricing out material, doing all the due diligence you can on the rehab. 

Another factor to consider is if you aren't the owner you could be looked at as an unlicensed contractor doing work. You also won't have your home owners insurance coverage in place to cover your risk. Too much liability for such a small reward its not worth it. 

Good Luck, Aaron

My real estate partner has a listing right now where the seller is in jail and selling his property. From my understanding when you are in jail you have no legal right to sign anything. In my real estate partners deal they have an attorney who has the POA. He has signed off on the listing agreement, and all offers go to him. He picks the best one, signs off on it but has to petition the court to proceed with it. It has been an interesting situation.

I would suggest speaking to a local real estate attorney on how to proceed. It can be a pain working through this but will be worth it in the end. 

Good Luck! Aaron

I don't work and am not licensed in New Jersey and obviously haven't reviewed the documents, and am not an attorney but will give you a basic opinion based on how this is handled. This is not a legal opinion just a personal one. 

The referral agreement is with the broker. The listing agent signed on behalf of his company, possibly he shouldn't have but that should really be their issue to deal with. I am guessing that the listing agreement was signed with him, so any agreement he had on that particular listing should follow the listing. Even if they could technically get out of paying you, its bad business. Obviously if they treat you right, it could lead to a lot more business referred to them, and if they don't they risk losing all of their business. 

You may also want to check and see if you are getting turned down by the actual broker or a manager. If you don't get the right answer you can always escalate it to the actual broker, the owners of the company, regional managers, etc... 

Hope this helps, Thanks Aaron

There are some recommended title companies from Bigger Pockets and they have negotiated some discounts for Bigger Pockets members. 

Look Under "Network" at the top, and go to "Companies". 

Good Luck! Aaron

It can be difficult getting a construction loan with an existing building in place if any part of it will be reused. They will typically make you get a rehab loan even if you are saving the foundation only. It sounds like you are removing everything so you should be ok. 

I would start with local banks that should be more motivated to loan on revitalization projects in your area. Start with the closest ones in proximity and work your way out. 

Also make sure to check with your local zoning and building departments and make sure that once you remove a building that you can put what you want in its place. If they are building new townhomes across the street you are probably ok, but better to be safe and do all your due diligence. 

Good Luck! Aaron