All Forum Posts by: Chris Clothier

@josh Dorkin -

You are probably going to tell me that it has been there since day 1 of you starting the site, but I just recently started using the search function in the forums and, even better, started using the utility to narrow down the searches. I have been not only specific terms, but also which forums they are in and how recent the forum posts were made.

This is an excellent tool for finding topics or keywords from within the last few days. I have definitely found it easier to navigate topics that interest me right at that moment and to find topics that are timely for my business.

I wasn't sure if everyone was aware of how to use this particular function on the site and just wanted to point it out and tell you that I thought it was a great tool.

All the best - Chris

Rhonda Foster - Were you able to find a company to help you out? If not, you can contact me and I will be happy to see if we can help you. We have a pretty extensive list of individuals and large crews that we work with. We don't do a lot of outside jobs ourselves, but that doesn't mean we can't make a recommendation of someone who can help you.

I'd be glad to help if I can.

Chris

My update didn't work right which, is probably user error. Anyway...

The company I was referring to in this post has apparently purchased a list of email addresses of recent property buyers in Shelby County. I am not sure as I do not know who else received this email. But, I received an email today congratulating me on my recent purchase and inviting me to use their company for my next purchase. They included a link the exact report I was writing about here on the post and referred to it as a credibility piece for their company and he city where they are the premier investment company.

It simply makes me shake my head at the laziness of some people in the real estate business. This company advertises as a turn-key company and companies like mine have to fight the negative stereotypes created by companies like this all the time.

Details, details, details...they can make you or break you every time.

But on the other hand - I am thankful for the free publicity they are giving to our company. I think I am going to track the number of registrations we get in the next few days at our site where the person says they are registering from an email they received.

Hi Shunta A. Congratulations on jumping into the site with both feet. Best of advice I can give you on here is to keep engaging with everyone on the site. Don't be shy and always be responsive (as best you can). There are some fantastic individuals on this site who can really help you with answers and motivation. Don't hesitate to call on me for anything I can help you with as well!

All the best - Chris

Monica Burt Welcome to BiggerPockets! Always love to see fellow Germantown residents getting involved in real estate. Don't hesitate to look me up and ask any questions you may have not just on real estate in general but on the BP site as well. This is a fantastic resource and in my opinion, infinitely better than local REIA's - especially if you are looking to network with individuals who are really getting their hands dirty and actively investing. Jump into the site and get involved. It can do wonders for your knowledge and confidence as an investor.

All the best - Chris

Ann Bellamy thanks for the reply with ideas that you see investors implementing to adhere to the rule without it impacting their business. Brian Burke, I like that you put in a system about not testing the boundaries. As J Scott noted, there is no getting around it once you know exactly what it says and what it means.

My reason for starting the post is that the restrictions are not uniform. Early on it was pointed out that there is the 90-day deed restriction and then there can also be an encumbrance on it. Depending on which one is noted on the deed will depend on what you can and cannot do and you could purchase two FNMA foreclosed properties on the same day and have a completely different set of rules to follow on each one.

To add to the confusion, many title companies that provide title insurance are either unaware or disagree on whether a violation of either clouds the title for future resale. It could provide an unfortunate situation for re-sellers in the future if they think they have clear title only to find out they don't.

J Scott, Bill Gulley and John Chapman - thanks to you guys for getting answers back.

We were recently notified of the encumbrance wording on the the FNMA title and are working on some issues with it. The real problem is that many title companies are not aware of or looking for the wording and there is some ambiguity in the response from title companies and FNMA themselves. I was wondering if any other guys doing a lot of properties have dealt with this. We received different responses from different title companies providing insurance with many being unaware of the wording and all being unsure of the effect it has on the title (if a borrower borrows more than 120% is the title clouded? and how to clear it?). Then word from FNMA that it was not intended to prevent borrowers from this type of lending, but was intended to prevent borrowers from submitting false information to banks and borrowing above purchase price only to walk away with the money and eventually default.

I know that may have been a problem back when anyone could get a loan, but not so much today and I'm not sure if the 90 day plus 120% encumbrance deed restriction is having an unintended effect on some people.

We have also been notified by different title companies that they interpret the 90 day rule differently and in three different ways. 1. That is it is 90 days from closing. 2. That it is 90 days from the date the deed is recorded. 3. That it is 90 days from the date the deed is received by the registrars office (I have no idea how they planned on determining that, but this answer came from a title company in Ohio I believe).

We are doing a lot of properties and dealing with a lot of different lenders and title companies and it is getting crazy how differently everyone is interpreting these restrictions right now.

I would love to get some insight from anyone on the site who has dealt with this situation.

I think many of us are aware of 90-day deed restrictions. Has anyone had any trouble borrowing funds to purchase an FNMA property with a deed restriction inside of the 90 days? Here is an example and I would like to know how others with experience in these restrictions view this...

Property can be purchased for $100,000.
Property needs $30,000 in repairs.
Property has an ARV of $180,000.

We all understand that the property cannot be sold inside of 90 days for more than 120% of purchase price.

Can the buyer borrow all of the purchase price plus repair costs from a short-term lender...$130,000 or 130% of purchase price? Assuming that the lender will record a standard instrument protecting them as a lender, can the buyer borrow more than 120% of the purchase price even though they have no intention of selling the property before the 90 day deed restriction is up?

One last additional question. If it takes the recorders office 30 days to record the new deed, does the buyer have to wait 90 days from purchase or 90 days from recording to sell the property?

Looking forward to some feedback -

Chris

Kevin Barker - both of the above answers are right. You stated the question as if there was a universal rule stating that landlords can give 60 days notice and terminate a lease. That is not true. Each state and even municipality is likely to have landlord/tenant laws that will dictate actions you are able to take as a landlord.

Even though Dale Osborn noted that you need to read the lease closely to see if there is a clause included giving you the right to terminate the lease, that does not mean that the previous landlord knew or followed local laws. Your best best is to get a copy of the lease (which should be a basic step in due diligence) and contact an attorney who specializes in tenant evictions in the area that the property is located so that he can review and advise you on the lease. If it meets state and local laws and gives you the right to early termination, then you are in business. If not, as Jon Holdman noted, you will have to honor that lease until it expires.

Chris

Bryan Hancock - I would look within the crews themselves. Many times, a large crew is actually made up of several groups of men and the possibility exists for them to split into two crews each with a leader. We have had laborers turn into excellent managers of crews here in Memphis and in Dallas. You just have to read the guys themselves and see who the natural leaders are. From there, if you give them good direction, they should have no problem.