Lessons in Not Overdoing Most people come to Puerto Vallarta and have a fabulous time. On the other hand, there are those who go overboard in all the wrong places, and we mean that literally. When you go to the…
Biodental Studios Welcome to Biodental Studios – Dr. Javier Morales At Biodental Studios we use only biocompatible materials, the most effective techniques, state of the art sterilization, and modern high dental technology. Dr. Morales also offers some detox recommendations to…
We laid off sugar a few years back and have been very happy about the switch to honey. Local honey in Puerto Vallarta can be purchased on the streets and we often buy from the same grumpy old man who…
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The bathroom is one of the most crucial areas of the house. It is where you can refresh yourself before or after work. 10 designers made use of their brilliant ideas to come up with simple but eye catching Wash…
When we first arrived in Puerto Vallarta, our destination for groceries (and many other things) was Gutiérrez Rizo. If Rizo didn’t have it, you didn’t need it! Rizo, located in the heart of Old Town, had two levels with a…
One of the biggest worries of new house flippers is what happens when they can't sell their flips.
It's a legitimate fear…but one you don't need to have if you just take a few precautionary steps with your lenders ahead of time.
To do this though, it largely depends what KIND of loan you have on the house.
Here are two scenarios that you may come face to face with and how to deal with them.
When you're working with a private money lender – this could be a family member, a friend or a business acquaintance, you're the one who's setting the terms.
So when you write that promissory note, you're going to personally guarantee the loan. I do this on all my note holders; I personally guarantee them, depending on the situation.
If it's an equity deal, then it's a little different – but on a pure note we usually personally promise them. It's really important to me to make sure my lenders are well protected.
I do this because I don't want to be in a position where I can't pay off that note only because it went beyond the 12 months. So what we typically add in a stipulation our promissory note that includes a “when the property sells” provision.
The idea is not to make you lazy or give you a false sense of security, but to protect you in case hings go wrong.
Never forget that in house flipping, time is money and you never want to be in a property longer than six months.
This provision just gives you a little extra layer of protection to know that you're not going to be foreclosed on hard by your lender.
If you're in a deal with a hard money lender, then the rules are completely different…so this section is a bit more lengthy.
When you borrow hard money, the hard money lender creates the rules, they're professional lenders just like bank and most of them really know their stuff.
Some house flippers, eager to get their first deal funded with a hard money lender, get too aggressive and set their terms for six months.
Big mistake…
Never, ever, ever get into a six-month loan with a hard money lender. I don't recommend them…its just not enough time, especially when you're first starting out flipping.
Its completely plausible that you could buy a property and it could take you 60-plus days just to rehab it. Not that you want to take that long on a rehab, but it can happen.
If the rehab takes 60 days, thats two full months into it and only after that, you can list it and start the selling process.
But lets say its towards the end of the year and it took a couple of months for the selling season to come. Or perhaps you could sell ...read more
Puerto Vallarta and Guns This past weekend we had the occasion to watch a rousing televised sports event in Puerto Vallarta with a group of acquaintances and a handful of people we’d never met, some tourists. One new visitor to…
Aztecs were meticulous record keepers and developed their own paper long before the Spanish conquest. Amate paper was banned by the Spanish conquistadors for the simple reason it was used in Aztec religious ceremonies. It was considered by Aztec shamans…