All Forum Posts by: Andy Mirza

@Terrence Evans My comment was meant as a matter of principle. I don't believe that government should make things extra difficult. It places extra burdens on people without necessarily increasing the quality of their work. In my mind, it's a drag on the economy and hurts everybody while protecting only a few.

Yes, it will probably weed out those that don't want to jump through those extra hoops.

It looks like we're included in this because we fall under "debt buyers." More red tape, more burdens, more friction to doing business, more government imposed headaches to deal with. 

@Marco Bario @Terrence Evans

I love and completely respect Aaron and Bruce, especially for their contributions to the real estate industry and willingness to help out others. When a man as wise as Bruce is willing to move out of state, it's something to seriously consider.

I, personally, would love to move out of state but my wife has a great job here and more opportunity that won't transfer to another geographic location. I can work anywhere but we are here for now. If things get worse in CA (like I expect it to) or things change with my wife's work, things may change.

In my mind, there are two issues and you don't have to do both: 

1. Buying assets or doing business in CA

2. Living in CA

For #1, people are drawn to CA for a number of reasons and demand is still here. Yes, it's more difficult to do business here than elsewhere but once we raise larger and larger amounts of capital, I'll still be buying in CA markets where the numbers make sense all day long. IMO, CA is headed the way of IL, NJ, & NY. It's not as bad yet but it's headed there.

For #2, mentally, I'm already moved out but will stay until the timing is right to move. I'll still buy CA assets. For my rentals, my partner and I are still keeping those for now. My partner points out that the problems in NY cause problems that actually keep rents high and that's still profitable. As long as he continues to manage things for us so I don't have to deal with the headaches, it can work :)

@Bruce Lynn Interesting to know that not all of TX has opened back up yet. We had foreclosures and an eviction go through in Parker and Fort Bend counties recently.

Good news in CA: our eviction just saw some progress and we are having our hearing via Zoom on Oct 1. My first time having to testify in any eviction case, haha! My attorney assures me my part won't be much but he's expecting it to be a zoo. This former borrower didn't pay her mortgage for 10 years and has occupied our REO for over a year. He said that one of the hearings he attended in February was the craziest one he's been in for the 30 years he's been an attorney because of the shenanigans of the borrower and her daughter.

@Julie Hassett The most accurate metric for you to use as Ned pointed out is IRR. I takes more work to calculate it. Using the "=IRR" or "=XIRR" in Excel makes it a lot easier. Or you could use a financial calculator. IRR uses cashflows over time to give you an approximate yearly return on the money you have invested in a project.

For my purposes, I use Annualized ROI. It requires less work to make the calculations but is enough information to let me know how a particular asset performed.

We calculate our returns based on the total cost basis of the asset instead of the purchase price. Since our are hold times are typically 6-18 months it doesn't make that much of a difference to IRR.

Here's another reason to dislike doing business in CA especially if you're a trustee sale buyer:

https://community.propertyrada...

Unfortunately, this new bill regarding CA foreclosures will probably get signed into law. It adds 45 days post trustee sale to allow "eligible bidders," including tenant occupants to outbid the winning bidder. Terrible for investors that buy at trustee sales. Adds at least 45 days to timelines for foreclosing lenders.

In our experience, most of the states that we have loans & REOs in have gone back to normal operations for foreclosures & evictions.These are TX, TN, VA, NV, & WI.

The exceptions are:

California - courts have not started scheduling eviction hearings yet (at least in Sacramento County)

Illinois - Cook County is not allowing the entry of any orders for foreclosure with no indication when they'll resume; Will County is not scheduling any Sheriff's Sales through the end of the year.

New Jersey - some Sheriff's have canceled most sales through the end of the year.

Louisiana - Terrebonne Parish has not resumed Sheriff's Sales yet

Anyone else care to share info?

@Alecia Bolton Not a dumb question. I would use the PMB.

Man, I'm going to lose this one! The only re-performers we have are BK Ch 13. Do those count?

Best ones we have are two loans with about a two year delinquency before the BK filing. One is now a steady re-performer and the other is 60+ days late, pre-MFR.

@Chad U. Maybe this answer also depends on which state you're in:

If the SoL has expired, are lenders completely out of luck? Or are there requirements or procedures to re-start the clock?

I remember seeing a few loans, one in OK, where the servicing comments indicated that the lender had to get an affidavit or other document executed and filed. I think that after the SoL expired, the lender wasn't entitled to any interest or late charges until the process re-started.