All Forum Posts by: Chris Clothier

Jon -

This does not apply to every home purchased with Non-Recourse money correct? Does it not only apply when the borrower owns the property in an LLC? I am a little fuzzy on the details, but I do know that not every non-recourse loan is subject to those taxes. Do you have any insight?

Chris

Richard -

I sent you three lenders to contact. Let me know if you have any luck with these three lending in Illinois. If not, I will tell you how we found these three and you can go to work looking for and finding lenders there in Illinois.

As for the comment that lenders will not lend to a conventional buyer in short periods of time, that is completely false and I want to make sure you don't let that comment influence you. You can find lenders that will close deals for your buyer. We do it every week. In the month of September, my company sold 14 properties with conventional financing and all of them in under 60 days. It can be done and is a key to you getting these deals closed sooner and having a higher margin than you would if you have to hold and wait for the closing.

Good luck - Chris

Richard

PM me and I will give you the contacts on a couple of lenders that I know who do not have those requirements.

Ken -

I would agree with J Scott and add one more thing. If you know you want the property and have your financing lined up in advance, then there cannot be an amount for EMD that is too high (in theory!) I have offered 50% EMD non-refundable and closing in 7 days on a property that I knew someone else was looking at but they were going to offer a slightly higher price than me. I did not want to raise my price and erode the profit margin, so I simply improved my offer from the terms stand point and it definitely caught the attention of the sellers representation.

Obviously it is not a game and you do not want to gamble, but if you know you want the property and are prepared to close quickly with cash, then go as BIG as you need to on the terms in your contract without offering a price that is so high you eat into your profit margin.

Richard -

Are the end buyers willing to be pre-approved with another lender? There are plenty of lenders today who do not have such strict seasoning requirements, especially when it is going to owner occupied. If the provision is one stated by the lender and not by the seller (i.e. - some HUD and FMAE foreclosures come with deed restrictions) then I would simply find a lender who does not have those restrictions on their loans.

Sherry -

Definitely stick it out for a few more meetings and try to get a better overall feel before bailing on this one club. That does not mean don't still attend other meetings. The important thing is that you surround yourself with others that are doing deals and actively participating in the real estate market. If you feel that you are simply attending get-togethers to eat coffee and donuts and see if the owners can make a few more bucks with speakers, then definitely run!

Nothing can kill the spirit of a new investor faster than being surrounded by the wrong people with the wrong mentality. Best of luck with this club and hopefully you find others as well.

Chris

Jake -

It's funny how service you are not used too can feel strange and almost make you more cautious. Hopefully, they do the job you hired them for and continue to do the type of service like J Scott described.

Mitch - your gonna have to show me that trick. How did you post pics in your posting?

Vicky -

I would say it depends on if they are communicating with you or not and if they are being respectful, but are having difficulty always playing catch up. For chronic lates that are good tenants, but having difficulty, we still take them to court and get an eviction notice that is valid for 10 years. It enables us to work with them and then evict at any point if they are late and stop communicating and working with us. That eviction can take place at any point once we have the court order.

Kyle -

We always start each investment property with a thorough cleaning from the curb to the door on day 1 and that includes bringing in small hardy plants where needed and black mulch to offer a contrast to the yard and the brick. You don't need too much - and nothing real mature and thats only if none exists in the first place. If there are already shrubs and trees we always cut them way back to allow a good view of the house and then come in with fresh mulch. Last thing is always make sure your yard guy puts a nice clean edge with the curb and the driveway/sidewalk and the grass. It just looks clean.

Chris