All Forum Posts by: Sebastian Taylor

Hi, I have two offers on my house, one VA and one FHA. Purchase price is the same, both wants 4% of sellers help, both got through desktop underwriting and have a pre-approval letter.

What offers would you accept? I am leaning towards VA, because the guy who purchases it is on active duty.

Thanks!

@Account Closed, would you explain this, please? "requires backtracking on work and permits to bring it to code"

If I bought a house and there is no vacant notice, why would I do that?

Bought a property in Baltimore, Maryland. Previous owner or their contractor has a permit that has not expired yet. Is it possible to transfer a permit to different contractor?

I understand, however, my experience says that a lot, if not most, HMLs still want me to put 20% of my money into purchase cost. 

It usually works approximately this way:

$200k = after repair value

$80k = purchase price

$50k = renovation cost

200*0.65= $130k = MAX the HML will put into deal, they want a good cushion

80 + 50 = 130 = What I need to buy this property (same in this example, but usually not)

130 * 0.2 = 26K = Out of my pocket as required by HML

80-26 = 54 = Wired by HML to closing

130 - 54 = 76 = MAX construction escrow 

I am interested, but I don't have a deal at the moment. Do they require a "skin in the game" or can lend 100% purchase + rehab?

@Sean Thomas, How is that possible to wholesale HUD property? Are you buying whole LLC that is under contract with HUD?

Baltimore - crime in ANY area. Especially where you don't expect it - the city government.

This is an AJBillig auction, correct? Reserve price of $10,000 does not mean anything. There will be 50 investors bidding on each one. Worth it to go and learn how auctions work, though.

@Adam N., go try looking up an llc through the Secretary of State of Maryland website, and see what names will come up. I do business in Maryland and know what I am talking about. You cannot link my LLCs to me through Secretary of State website, unless I am uneducated enough listing myself as a registered agent, or having put my name or home address to Articles of Organization (hint: it requires a signature only, and a business address).

Your statement about public domain is incorrect, because there are states where the info is not public, or is so limited as in MD example.

Suggestion: don't do it. By the nature of your question it is obvious that you do not know what you are about to do. Start with property (a) with less damage and (b) in more investor-friendly area.