Matt Motil Cleveland Private Money

[Kyle Collette]

Hi all, has anyone else here loaned money to Matt Motil in Cleveland? We have a note coming due on May 1, but haven’t received April payment and have not heard from him in a probably 2 months. Just seeing if anyone has another way to get in contact with him. Thanks

[Jay Hinrichs]

Originally posted by @James Wise:

Originally posted by @Kayla V.:

I also lent money to Matt back in February of 2020. He was paying until February of 2021, but that's when he went dark. He won't respond to any of my messages. 

He sent out a mass email with all investors bcc'd at the end of March that claimed he was going to start selling properties to service the debt, which made me hold on getting a lawyer involved. But I haven't heard anything yet and this thread is making me think it may be time. 

 Sorry to hear about that Kayla. In a situation such as yours, the smartest move is to lawyer asap. You want to get in there and try to recoup as much of your damages as possible as soon as you possibly can. 

In the majority of fraud or Ponzi Scheme cases the common theme seems to be that the money is mostly gone, and whatever is left runs out before a large portion of the victims are made whole.

Sounds like the majority are first position mortgage holders.. this is super simple find an attorney that specializes in mortgage foreclosures and file. there is a federal law that went in post GFC that requires lenders to give a 90 day notice before they can file and I think it pertains to any loans on any 1 to 4 unit properties  the assets that Dodd Frank was designed to regulate. 

once the 90 days is up you file your foreclosure  in OHIO its a mortgage state so it cost more  money than a Deed Of Trust with power of sale state.  and takes at least a year . In the meantime the borrower will just rip the rents if Any.. Now if you read your mortgage small print you might have Assignment of rents clause  ( when i was lending I put that into all my security docs).  Then some tenants you can bluff and will send you the rent and you credit towards your interest payments.. others wont they are afraid of being evicted.  other wise you have to have a judge give an order ( again money) so most folks don't go that route. 

But for sure have an agent that is local do a drive by snap some pictures and give you a price assessment to see where your at.  Market in Cleveland is pretty robust but if this guy is just going to Ghost you your probably a good year or more away from getting your collateral back 

If its abandoned as the lender you have the right to secure it.. I have even moved tenants in myself  LOL.. kind of a grey area there but Hey its me against that them. 

I just took back 10 props in Cleveland and was there last week.. 3 have issues the others i can sell and recoup no problem. but I don't loan I own them so no foreclosure necessary.. I personally would never do a loan in a mortgage state ONLY deed of trust state with quick foreclosure time lines.   

People are paying some good money right now and some hedge funds as well. I just sold one of my OREO in Jackson MS.. 1 year ago as a vacant house needed full rehab I might have gotten 25k from a local for it.. just went into contract last week with a hedge fund for 71k NET to me they pay all costs and back tax's.. so something is in the water.  I think Cleveland might be in the same situation to some degree.