All Forum Posts by: Vladimir K.

Congrats on paying off your house. I wish I could pay mine off as well, but alas, I'm looking at about 30 more years of payments.

Unfortunately, we live in a world where being responsible can sometimes be a disadvantage. I know of people who had over extended themselves, borrowed more than they could afford and then ended up having their debts reduced, and loan interest rates lowered. On the other hand, responsible people with equity in their home were stuck with higher interest rates due to inability to refinance (and get the same lower rate honestly).

Whatever investing you decide to do, consult with an attorney and/or CPA on protecting your assets in case a deal goes south. If you have a free and clear house, you may be a better target for lawsuits vs. someone who is overextended.

Will, is there a legal way for you to play dirty? For instance, is there a chance that the property is not up to code, requiring a village to intervene? Were there some things that were done without a permit that need to be corrected for the "safety" of the inhabitant?

If I understand your post correctly, the tennant/deadbeat claims legal right to ownership of the property while you are the legal owner. Is there a way for you to get access to the property even while the tennant is in there? So, for instance, can you hire a crew for a roof replacement but delay the installation of a new roof?

If you did tear the roof off, that would be a civil matter, right? What would happen to you? Of course, I'm not an attorney nor am I playing one on TV, just thinking of what could the reprecussions be?

After looking at two local (Chicagoland) hard money lender applications, I noticed that the lenders wanted me to disclose as much information as a conventional lender would require. In addition, the applications included an authorization from me for the lender to go after my assets in the event of a default. This really did not make any sense to me, since based on my understanding, an HML lender would be more inclined to look at at a collateral more so vs. looking at a borrower.

Please note, my credit score is over 800 so I'm not asking this question because I plan on defaulting. And I do realize that the hard money lenders incur substantial risks with their funds when they lend to rehab investors, therefore they charge much higher upfront fees and loan interest rates. But it does not make sense for me to risk my personal property and finances with an HML if I can have the same risk with a conventional loan instead for a much lower fee.

Are HML's typically wanting terms that would allow them to go after the borrower's assets in case of a default?

in my opinion, step one is to arrange a financing (if you don't have the cash lined up). Then, based on your financials, consider the areas that you can afford to rehab in.

Then, learn these areas. What's selling, what's not selling. Consider stopping by actively rehabbed properties and meet the crew, get some numbers, especially if you like how they are working

My post is an example of 'do as I say' but not as I do, as I've not rehabbed myself. But these are the steps I'd use if I was actively looking right now.

To get estimate of repairs, one needs to get a few contractor's bids (at least three). I found (when hiring workers for my home) that you generally want to speak with someone who answers their own phone. Those that have a secretary, fancy ads, etc... need more overhead and will charge accordingly.

also, check out public-record.com. It's a paid source that you can legally browse for free IF your library pays for it.

check out the list of libraries that subscribe to their service under 'library partners' link

when I checked out a few Chicagoland area lenders a few months ago, they were asking about bank accounts, all liabilities and the application process did not seem that different vs. applying for a real estate purchase loan.

I'm not sure why all of that information is required if the loan is truly based off of the potential value of a given property.

Hi All, I'm getting close to pull the trigger on a cash deal not to far from me and, due to many years of reading horror stories, want to be prepared as best as I can. So, I have the following questions:

1. 1099 - I plan on having my attorney draft an agreement that would work for my benefit, including firing a contractor if needed. I also understand that I'll need a 1099 for each sub-contractor or on 1099 for GC if I hire a GC.

If a contractor does not give me a 1099 tax info, am I still able to write off the expense off my taxes?

2. What happens if a contractor does a poor job or walks off the job site. I presume the agreement would need to cover this, but what steps have you taken to make sure that does not happen?

3. What is the maximum amount you pay upfront (for labor) before the job starts? I presume it's not unreasonable to pay 100% for materials, but not sure about the reasonable labor fees. I'm sure it's a good idea to discuss this during the estimates.

4. What is a good estimate for tax liabilities? I.e. if I make a profit of 30K (as an example), should I budged 10K for income taxes? I'm in a 25% marginal income tax bracket currently.

Thanks.

I think there is a website called foreclosureS.com that has a list of NOD's (preforeclosures) around the country. The site probably resells data they get from the local court house data mining services.

If you are talking pre-preforeclosures, or where the data is gathered before the NOD is filed, those lists are available as well (based on credit reporting information), but I hear that those lists, while expensive, are pretty much useless since most people are in denial at this early stage.

In my opinion, you should go to 100% broker, as long as monthly fees are reasonable. You can always pay for the training if needed.

As an example, if you need hand holding at first, consider splitting the commission with a knowledgeable agent from your office. You can always negotiate your split this way.

Also, i'd recommend that you contact agents who sell their own homes (search Agent Owned/Agent Interest) to find out what their opinion of the brokerage is.

What are you saying Bryan? The poor uneducated public has been known to try to get the Agent out of the loop by trying to negotiate the sale of the property outside of the Agent.

Listen, if the property is Listed on Realtor.com, and the buyer sees it, or the buyer notices it while looking at other properties in the neighborhood, HOW is an Agent able to boycott this property?

If the buyer is refused showing, they can contact the listing agent directly! Listing Broker and Agent info is on Realtor.com! Come on Bryan. Are you suggesting that the Listing broker will boycott their own property?

Hmm...and how does that happen? Surely you must know of one instance.

The buyer says... Hey, I want to see this 123 mainstreet (offering very low commission, unknown to buyer but only to their agent) . Are you suggesting that this Agent will lie (that the property is under contract, or that there is something wrong with it?).

This could happen, granted. BUT.. the Agent is likely to loose their license over this. Especially if the buyer drives by a few days later and notes that there is an open house, etc...

If an agent lies, their license and livelihood is in jeopardy (if they are a Full Time agent).

I'd worry about Real Estate Investors lies before I'd worry about ANY Licensed Agent out there.

And the buyer who can access the internet cannot see the Listing broker's contact info? Come on, it's all on realtor.com!

Which is it? Do we have a largely uneducated public that can be easily steered towards higher paying cc proerties by dishonest Realtors outthere?

Or do we have a situation where the public does not need any Real Estate Agents and they are all on the verge of extinction, just as Travel Agents?

Good thing there are Investors to educate the public and serve in the *public's* best interest!

I thought you were using a flat fee broker! What are you complaining about?

It's not 6% in every case. Unbelievable that you are still saying that it is after YOU admitted to using a flat fee broker.

Very hypocritical answer, Bryan. I thought you just claimed that the public is uneducated. The public can be 'steered' away by the greedy Realtor wanting to make a higher comission.

Yet, the same public giving away a MUCH bigger piece of their equity to a Real Estate Investor-Wholesaler (unlicensed, btw) is fair and just?

Come on Bryan!