All Forum Posts by: Wendell De Guzman

@Mike H. is correct in his explanation of how low HUD can go in terms of the price. I love HUD...I just got 4 houses accepted past 2 weeks!

The key is to stick with it and just BID, BID and BID!!!

Great story @Dawn Anastasi and @Mehran K. ! If you find a deal like these (good Cash on Cash return!), I have some money to invest.

@Ashlee Reimer , I am a private lender & experienced real estate investor and based in Chicago. When you have a deal or property, let me know and I can tell you if I will fund the deal or not. This gives you an idea of whether the deal is a good one or a bad one.

@Will Barnard got it correctly. A double close (A - B then B-C) is perfectly acceptable as long as B brings $$$ to close the first transaction. Dry closing is not acceptable in a lot of states and not acceptable to a lot of banks when they are selling their REOs.

But back to the original question of @Chad Clanton : the answer is NO. Double closing does NOT create a clouded title issue because the title transfers from A to B...and then from B to C later on. In the chain of title in a double close, all three parties will appear but only after C buys it from B. But before then, on title (for a few minutes), B will appear on the chain of transfer. Makes sense or it's as clear as mud?

Attention: Rehabbers

Handyman special in Stickney IL - a suburb of Chicago. The 2 bed/1 bath home is worth $85K to $90K fixed up and it's yours for only $54,900. Text me at 714-270-6438 and I will text you back the address so you can go ahead and do your numbers and make us an offer.

Attention: REHABBERS!

Handyman special in Flossmoor, Illinois (Chicagoland area). I have this 4 bedroom/ 3 bath home worth $250K in good shape and I am selling it at a fire-sale price of $133,900.

It needs a new water heater, paint, hardwood floors refinishing, new kitchen appliances and updating of the kitchen and bathrooms. You can't find a better deal than this in Flossmoor.

Send me a Text Message at 714-270-6438 so I will know you came from Biggerpockets.

@Marc Pfleger ,

I agree with @David Beard: buy out the first mortgage and your investment becomes first lien on the property. I would prefer to be a lender vs. a partner. Why? You share the risks (liability of a vacant property; what if the house remains did not sell, etc) with being a partner. As a lender, if you structure the deal correctly, you get to have first lien on the property and you get the property if the rehabber defaults. Also, if he has done only 4 deals with 2 properties that are not yet sold, he has not done enough deals to be experienced enough. Whenever I lend money, I require at least 5 HUD settlement statements showing that the rehabber-borrower has done at least 5 deals.

Call me if you have questions.

I agree with @AC Cooley : just get a different attorney who is really investor-friendly. You need to be in control. Some attorneys surprisingly don't get assignment of contracts.

@Anthony Joseph , there is no need to present "theoretical" deals to hard money lenders. You need a real deal that is already under contract. If I were you, I will meet with them and ask them about their underwriting guidelines. Then you will know what their requirements are so they can lend you money.

As a private lender myself I will require the following:

1) 65% LTV

2) fund 80-90% of the acquisition + rehab cost (they need to see you have skin in the game or 10-20% downpayment)

3) they will ask you to pay 3-8 points (or 3-8% of the money you're borrowing)

4) sometimes, they need someone with good credit so you can show them that in the worst case you can't sell the property, you can refinance them out

5) sometimes, they will require you to have 20% reserves so you can pay for the first phase of the rehab

@Larmon Cummings Jr , welcome to BP. What parts of Chicago are you interested in to rehab houses? Have you rehab houses before? What help do you need in your rehabbing business?