All Forum Posts by: Sita B.

It sounds like you will need to refinance one of the residential properties to pay off the commercial loan. Whether or not you need refinance the second residential property is up to you. The warehouse sounds like you are looking for a construction loan. You could use one or both of the residential properties as collateral. If you use one of the residential properties as collateral then it may be better to hold off on refinancing it as the construction lender may want to be in first lien position on both properties.

Have you lined up a prospective lender to determine their underwriting guidelines? 

Nice to meet you @James Brookins . I'm in the Philadelphia area also.

I would definitely have a liens and judgement search ran against every property that you are thinking about bidding. Any outstanding liens that are held against the property are yours to deal with after the sale. I think you can get title insurance on the property after the period of redemption has passed. (I think the period is one year from the date of the transfer)

I would second Randal's suggestion. The separate HUD would fit perfectly if the title company is open to doing it. I operate out of PA, and it would be an easy solution as most title company software can accommodate that request.

Hi Paulette. Nice to meet another local investor.

Nice to meet you @Account Closed . The great thing about real estate is that even with years of experience under your belt, there is always something to learn.

A better idea would be to reach to an attorney. I believe DE residential loans have to be closed by an attorney. Stephen Robinson at Robinson Grayson Ward is our normal recommendation.

Thanks @Tyrus Shivers . I always lumped that fee in with the commission. 

I'm a numbers person so I played around with a 203K calculator and got the following:

So if you rent both units out for $1400 then you are cutting it a little close with a profit of $271. This does not included taxes, HOI or a budget for any necessary repairs.

Disclaimer: I am a newbie so I would love to see the responses from our more experienced investors.

@Jeff Kushner unfortunately it is becoming more commonplace. I just did a HUD and placed a $395 fee on the buyer's side as "additional commission". Makes getting my realtor's license more appealing.