All Forum Posts by: Account Closed

Equity in this situation almost certainly does not equal any control rights, so as a minority partner, you better really trust the developer, both his ability to get the job done right and not run off with your money. You are along for the ride, however bumpy it gets. If you fund the senior debt, you have a bit more influence because you can potentially foreclose if things get sideways, although that can get dicey because your partner (using the term loosely) will likely claim that you have fiduciary duties to him on the equity side, and can't favor your own interests on the debt side over his.

If you are confident in the deal and can handle in additional financial commitment in terms of your overall portfolio, then I would do the debt side as well to give your equity at least some measure of additional protection and control.

Your only realistic option in your scenario is to refinance with a bank or private loan or find an equity partner to take out the hard money loan. Can't profitably rent if you are paying hard money rates.

What kind of counters are you getting for 1/3 the price, i.e. $2k? Should be able to get low grade granite for that price in a regular sized kitchen.

How's the buyer traffic post-price cut?

This is really just an observation, since it's beyond your control, but I'm curious whether the Zillow sales history showing the previous low listing price is hurting demand. While everyone criticizes Zillow, retail buyers do look at it, and I could see potential buyers being deterred by the apparent spread.

Just my two cents since I know nothing about Nevada real estate and brokerage law, but it sounds like your plan involves coming dangerously close to acting as an unlicensed broker.

I would be very surprised if a debt that originated in 1979 could legally support a judgment issued in 2011. The statute of limitations probably expired about 30 years ago, but that likely would have been an argument for the debtor to raise before the judgment was entered against him. Since the judgment was entered, tough to contest now.

As Joel says, no way to say without more facts, but since you made an agreement to resolve it for $2,000, this is really a moot point.

Its an REO owned by BOA that I'm going to rehab. Bought it off auction.com, so while the transaction had been very slow and painful, it can be done. Should be quite profitable if it ever closes.

Supposed to close first rehab deal of 2014 tomorrow. Been under contract for about a month. Original closing date was 10 days ago, but Bank of America has been a royal pain in the *** per usual. Put the closing "on hold" after deed was in escrow and all docs signed on my end.

There is no rule against knocking on the door, telling them you own the property and seeing what they say. Of course, they don't have to talk to you. Be polite, make it clear you're a reasonable businessman and see what they say. I wouldn't start by putting $ on the table. They may be happy just to get an extra week to find a new place.

If you have a decent lease, it should include a provision that the tenant cannot use any alleged problems with the condition of the house to offset rent. Read it. Judges hear these types of complaints from tenants all the time and typically aren't that impressed. File a counterclaim for the rent owed. Worst case, you should get a set-off of the amount of unpaid rent against any damages the judge finds you owe (which don't sound significant).