All Forum Posts by: Shannon K.

I'm searching for a flip right now... Not married, but I could pretend! @Chad Johnson, would you like to go 50/50 on a pretend-marriage first flip? Lol.

Wow, @Marcin Chojnacki! I'm looking at a property this Saturday with numbers I hope to have end up like yours. The kitchen, I love! Might I ask what type/color those floors are?

I agree it is indeed risky. I've got some room in my deal to do so, so I'm actively searching. I can't find a local Buffalo, NY hard money lender... Every NY one I find and begin chatting with only services NYC! It's a daunting process so far...

I'm in the same boat as you @Nicholas Smith. I am searching for a hard money loan in Western NY.  Not NYC!  I have crunched the numbers on a nice deal, have some of my own cash to put into the deal, and an experienced partner and I'm still running into road blocks! 

Can't find a reputable NY lender thus far... The property I'm bidding on doesn't qualify for conventional financing. Rehab loan or cash only.

@William Hochstedler, I was indeed told for this particular property there were no inspection contingencies allowed, no financing contingencies allowed, and a hard-money loan would not be considered allowed on this property either. I have not looked into a due diligence contingency. I will definitely research that, thank you.

I did withdraw my offer after my REI attorney confirmed no contingencies would be allowed and I was also not allowed to "dewinterize" and "rewinterize" the property for any reason even if I paid for it. This particular property was just filled with unusual circumstances and was certainly not the one for me. Additionally, I now have my own buyers agent who is familiar with HML as the listing agent I worked with on this particular deal was not familiar.

Yes, @David Dachtera, I agree, I do need to learn HOW to make the offer under investment circumstances. This weekend was rather confusing for me with agents telling me 10% down, I'm not allowed to have an inspection, I'm not allowed to use a finance contingency, I cannot turn on the utilities for an inspection even if I pay for turning them on and for rewinterization afterwards. I asked about all of those things. This went against everything I have read about due diligence when buying a foreclosure.

The bank countered another couple's offer, the couple accepted so I couldn't submit an offer. 22 minutes later the bank didn't want to accept the couple's offer so the realtor called me back and now I can submit mine! I submit mine Sunday, oops, now the bank re-accepted the first offer Saturday. Now on Monday I can submit an offer because there's multiple offers on the property. I lost/became eligible for the house 3 times over this weekend!

The listing agent I worked with on this property admitted she had never seen such crazy circumstances/bank accepting offers on Saturdays, etc. Long story short, this was not the property for me! I am comfortable budgeting for the rehab and crunching all the numbers/budgeting for holding/HML costs since I have done that type of work before analyzing my own potential deals and helping with other people's flips. I will take your advice moving forward and look to "tie up" a property the right way an investor would the next time. Thank you, I appreciate it.

Thank you @Jacqulyn Hughes! Outlining the steps was very helpful. So essentially there are 2 document signings that take place during an entire transaction:

#1: I first sign documents to present an offer to the seller (I did this this weekend and it was nearly 30 pages of docs/foreclosure info, etc). I then withdrew my offer immediately after my RE attorney confirmed a finance contingency is not allowable on this house and I will not receive my $12,500 EMD back if I can't find a HML in 30 days). Simply presenting an offer to a seller does NOT make me "under contract" though correct?

#2: Had the transaction proceeded further, I would have then signed a second set of documents (if the seller accepted my offer) and I would agree to all terms and be "under contract" at THIS point, if I'm understanding correctly...

I do have my own realtor who is experienced in foreclosures/short-sales/investor-friendly, however, given that this was my first time going after a property on my own, I jumped too soon and simply called the listing agent contact on the property for her help. I didn't know my own realtor could act as both the buying and selling agent for me (after I rehab this property later).

Thank you @Jacqulyn Hughes and @David Dachtera for commenting.  @Jacqulyn Hughes if you don't mind, might I take that bolded part of your excerpt and send it to my RE attorney for his opinion so I can be protected?

@David Dachtera how do I get the property "under contract" first? I guess I'm not clear on HOW to do it... I want to put a property under contract first (with my pre-approval letter in hand) so I can then present the deal right away to the HML I'd like to use and within those 30 days, have them approve the amount/arrangement.

The agent that showed me the foreclosure this weekend said I was not eligible to even make an offer on the property without showing a pre-approval letter first. I went home, retrieved my pre-approval letter and brought it back to her. I had the 10% EMD with me and I was not able to put it "under contract" for myself now and receive the HML thereafter...

I assumed (maybe incorrectly?) that I could put the house in my own name right now in her office to save it for myself, give a much smaller EMD, and ask for a financing contingency so my HML might be considered as a cash offer when it came through... Now that I think of it, the HML is still a "loan" but regardless, I was not allowed to "save the house for myself now" and get financing later. I've been on the renovation side of flips before with my partner plenty of times with his work crew, but this is the first time ever trying to put a property in our own name, so I really appreciate the guidance.

I've been browsing BP and researching a lot… How do others put a property under contract FIRST, then secure a HML/private equity/crowdfunding for financing AFTER? (I had a pre-approval letter in this instance). Still, you can never be sure the HML is going to come through and if it's a foreclosure which doesn't allow finance contingencies/ or is rehab loan cash-only deal, you then only have 20, 30, "X" amount of days for financing to come through and if it does not, you lose your earnest money deposit for sure?

Over the weekend, a listing agent I met with for a property stated I needed to put down 10% EMD for a property which equaled $12,500. I previously researched that EMD are smaller amounts! I am able to put down that amount in cash, but within the contract it contained a clause I found that if I couldn't secure a HML during a 30 day time period, I would forfeit the entire $12,500/contract terminated. OR I would be fined for each day past 30 it took me to get financing, AND be at risk for extra fees for defaulting on a contract… (Needless to say, no deal obviously, but I'm confused how others put a property under contract first, then arrange HML?)

Called the listing agent for a property on 12/29. No call back over the holidays… Understandable. Then days passed… No call back ever. 1/5 I called the company and asked for a new agent to help me view this property. 1/10 Today was our 2nd viewing of this property and I walked it with my construction guy/biz partner for an hour today.

We made an offer today at 5:24pm. By 5:42pm, the agent that toured the property with us today said she just spoke to the original listing agent that never called me back and someone else made an offer Friday night 1/8, Sallie Mae accepted Saturday morning 1/9!!!

NO OFFERS made on the property FOR 6 MONTHS and one gets made and accepted the very night before I see it!?!? Ironic. Disappointing. The offer that got accepted was EXACTLY what I offered today. Cash deal. I can’t help thinking If only the original agent had returned even one call when she was supposed to!?! Gotta stay positive and search again....