All Forum Posts by: Tim G.

Hey @David Sabine, I know you're REALLY excited about this prospect but you must do your due diligence on the deal.  Get all the numbers - rent roll, maintenance, etc.  She may be trying to pull 1 over on you because the tenants haven't paid for the last 4 months.  Basically, just be cautious.  

Now for a couple thoughts based on the above conversation.

1. If she's upside down or about even in equity, how is she going to owner finance?  That means she has a loan on it herself and if you transfer title from her to you, her lender is going to trigger the due on sale clause and want their money back.  I don't think any title company is going to do this sale without informing her lender.  It's 1 thing to transfer a title from your personal name to your business name and not trigger the due on sale clause.  Completely different thing to transfer title to a different person.  IF (big if) you can do this transaction, I'd be curious to know what her mortgage interest rate currently is.  If she hasn't refi'd lately, there's a good chance you can get a loan yourself and have a significantly better interest rate.

2. Lenders.  I don't necessarily have a problem with mortgage brokers.  But they get paid several thousand dollars per transaction that you can save with a little leg work.  I've been using Union Savings Bank for 3 years now.  $350 closing cost fees and I just did a 30 year fixed mortgage at 3.5% last month.  I know a few other investors in the area are using Valley Central Bank as well.  You should work on building up a relationship with a bank/loan officer so you can continue to do more deals.  Specifically smaller, local banks as they are usually more flexible than the big banks.

sounds to me like he is looking for a sucker to dump the property on.

Check out Valley Central Bank in Liberty Township. @Jered Sturm @Andy Sturm and @Coleman Nelson just did a commercial deal with them. They let us have our monthly meeting there.  I forget who the main mortgage broker is there. 

Yes. What's going on?   Also I looked at your website and I'd like to talk with you about your funding services. 

congrats Paul. We have a Cincinnati REI Mastermind get together once a month you should check out.

We are getting ready to purchase our 2nd flip of the year this week. The title company sent out an email yesterday saying they found some issues with the foreclosure and there were some unknown spouses that were not named in the foreclosure. They are in the process of trying to obtain a Letter of Indemnity (LOI) from the firm that did the foreclosure. If they can't, the foreclosure would need to be reopened to name these other people.

I did a little research on what a LOI is and I'm concerned that if we go that route we will have issues when we go to resell the property again in a few months. We spoke to the lawyer at the title company we typically use (not the title company doing this deal) and he agreed that there could be some potential title issues when we go to resell because of the LOI.

Does anyone have experience with this?  Are there any other options we can pursue? I've seen people recommend doing a quiet title action but I have no idea where to start with that.

You are very right! lol

I would personally look for a better deal than this one.  Wyoming is a pretty established neighborhood and the property values show that.  If a 4 family in an urban neighborhood is what you're looking for, I would look in the up and coming neighborhoods like Pleasant Ridge.

Wyoming has good and bad areas. It's definitely not all Class A. 

You own them and want to sell them or you're trying to wholesale them?

Where are they located in Cincy?

 i purchased this property with a mortgage that included rehab costs.  So the numbers shown above are not all the numbers, just money that actually went in and out of my bank account.  Actual numbers were $185k resale, $100k purchase.  The rest of the numbers are above.