All Forum Posts by: Ori Skloot

@Jay Hinrichs   1 year process for quiet title!  Holy smokes.  I looked online and a lawyer posted that it was 4-8 weeks.  Is it your experience that it takes that long in California?

@Diane G.   Great questions. I've been poking around auction.com and I've been curious as well about title insurance for those properties.

Thanks for the input @Jay Hinrichs   It's a rental but I need to have the option to sell or finance the property in the future.  Plus I don't want to have to compete with other investors at auction.  Looks like I'm going to have to figure out a way for title company to insure.  So far looks like getting a quiet title is my best option.    

Got a great off-market property under-contract in Oakland.  Yay!  

There was one last piece of paperwork that the seller submitted last week to title company (death certificate of his mother who did a quitclaim to him) and it was being reviewed by title company underwriting.   I got an email from the title company today:

"We have heard back from our underwriters and unfortunately, we are not able to move forward with this transaction until the estate of XXXX is probated. Our underwriters are not comfortable with the recordation of the quitclaim deed and the time that elapsed between execution and recordation. To move forward with us, the seller would need to probate XXXX's estate and the executor or administrator would need to act as the seller.”

Here is the issue (as best as I understood it): the deed was executed in the mother's name in 2003 and not recorded until 2014, which was 3 years after the mother had passed.  The current owner and seller, her son, has title in his name and has a quitclaim from the mother recorded.   The divorce settlement for the mother does not specify that the current owner was to receive the property as part of the mother's divorce.

Going to probate is not an option as the house is going to be foreclosed on next month.   I was thinking that maybe a quiet title may be the solution, but that takes time too.

So my best solution is to try another title company and see whether their underwriting will allow it.  Current title company is Old Republic.  

My question is whether anyone has a recommendation for another title company that may be more likely to offer title insurance on this property?   I know I can just "call around" but hoping to get advice here. 

Thanks in advance for any advice or recommendations!

I agree with @Jay Hinrichs about buying in Richmond.  Many people are afraid of buying in a rougher area but I see lots of opportunity for growth.  Plus there are still some great deals to be had.  I bought a fully rented 4-plex last month with awesome cash-flow for just over $400k   Its not without issues, but so far all the tenants are great and have paid on time. 

Jay - If you need boots on the ground or if there is an opportunity to partner in Richmond please let me know. 

If the material is in good condition (full non-damaged pieces) then there are a couple sites that will collect (Urban Ore in Berkeley, Reuse People in Oakland).   Not sure if they will take the sheetrock.  If what you have is a bunch of broken construction debris, the dump is your only option.

Hey Ryan,

If the numbers are really that good, you may want to consider taking this on yourself. Sounds like you have resources down in that area, which would probably be key since you are new to this. You could look at borrowing private money from friends/family for the down payment (paying them a fixed rate, say 10% interest-only payments) and then getting a hard money lender to loan the remaining balance (at around 2-3 points and 10% interest-only payments). The hard money lender won't care where your down payment comes from and the money doesn't need to be seasoned. This could allow you to close on the deal quickly. Just make sure that your ARV really is correct and this could be a great first deal for you. Good luck!

I've used High-tech termite out of Hayward.  They are pretty responsive and seem to do a goood job. 

To your question of whether Cal students will commute from South Berkeley the answer is absolutely yes.  

Big shot out to @Chris Mason.  Chris it's amazing how much you contribute to the BP community.  I've read dozens of your posts and the information you provide is invaluable.   Thank you.

OK, down the rabbit hole I go. So, I can't offer my friends a lien on the house for the money they lend me if I want to get a cash-out refi after closing. I don't want a rate and term refinance because then I would have to leave money in the house due to LTV ratios (right?). So what's the solution?

- Would a creative solution be to borrow their money for the Oakland house, but record the lien and promissory note against a different house (such as my personal residence in Berkeley)? 

- Fannie Mae rules state that I have to show proof of where the funds came from when doing delayed financing. Will that be a problem if I try the solution above and the promissory note is collateralized by a different house?

Regarding your idea about getting a pre-approval, I think that's a great idea.  Only problem is that I wanted to maximize the appraisal amount so I thought I would rehab the house first before having the appraisal.  Any thoughts on that?

Chris, we kind of had this conversation on a 4-plex I bought last month.  But new questions and twists are coming up with every deal.  Thanks for the help!

Hi folks,

I am in contract on my next deal in Oakland, CA.    I would appreciate your advice on whether there are any gotchas that would prevent me from executing my plan.

Purchase price: $250,000 (paying all cash)

Closing costs: $5,000

Repairs: $25,000

Total Cost: $280,000

ARV (estimated): $380,000

I am borrowing $250,000 from friends so that I can buy the property for All Cash. I would like to record a promissory note and deed of trust against the property for their loan.

After I close and do the repairs I would like to get delayed financing and pull out as much money as I can from the property. I'm hoping to pull out $266,000 ($380k x 70% LTV), rent it and be cash flow positive.

Questions:

• Is there any issue with getting delayed financing when having a promissory note and deed of trust recorded on the house for the money my friends loaned me?

• What will be my max LTV percentage? I assume 70% if it's an investment property? I heard it fluctuates depending on the number of properties with loans you own. Currently I have 3 SFDs with a conventional loan and 1 SFD free and clear.

• My DTI is going to get very tight. Will the debt taken on with the new loan for this property hit my DTI? My plan is to rent out this property. Will the rental income (I can have it rented by the time I do the loan) be calculated into my DTI?
• Anything else I’m not thinking of?

Thanks so much for your help!