All Forum Posts by: Austin Unger

Mike what role do you play in this transaction...... agent to investor, or wholesaler? Either way you can testing the the sellers motivation by having the agent (or if you are an agent) send an Letter of Intent. If the seller is serious they will execute the LOI (or counter) and request the offer be placed in a Purchase Agreement. At which point you can have the agent write the offer for you using the C.A.R. form. You'll have to figure out the vesting portion - if you plan on assigning and not closing, you'll need to also need Assignment of Agreement Addendum to be signed. Hope this helps

Hey Dan, I'd love to take a look at the property. I'm in the market for a 4plex and would be able to buy as is. What area of Phoenix? Ping me to chat more!

@Cody L. - the issue I'm having trouble wrapping my head around, is that the entire "note" isn't a note at all. To my understanding there is no interest rate or any real lender. This is private money, there is no paper work other than verbal agreements and a couple sheets of chicken scratch paper, and now the "note holder" is foreclosing on the property based on numbers he has made up so he can make more of a profit. I'm not the expert on lending what so ever, but it seems as though there is some sort of legality issue here.  I agree with you Cody, just trying to wrap my head around this one. 

@Account Closed Yeah I have American Title doing a title report now. There is in fact a sale date set for the Aug. 11th. 

I don't blame you! The  more I think about this property, the more I wonder if it is worth the time. I appreciate the response my friend.

@Account Closed definitely feels like one of those Rubik's Cube properties that you can never solve. I definitely think that the contract would be difficult to enforce, so I guess I am just wondering if it is worth the time and money in order to pick this property up at $160,000 and make $13,000. You might have answered it with the "Should be solvable for, oh, $50,000 to $100,000 in legal fees and about two years of litigation." I'll have to get a consultation to find out.  Can you recommend someone in the Phoenix/Scottsdale area?

I got an interesting foreclosure lead yesterday that I could use some help with. The seller purchased the property in 2010 using seller financing for $155,000 and he put $1,000 down and $1,000 toward closing costs. His payment was to be $800 a month interest only during year 1. Year 2 his monthly payment was $900 monthly with $800 going towards interest, $100 to principal. Year 3 the monthly payment was $1,000 with $800 toward interest. The payment has remained this way since 2013. So he should currently owe $140,000 in principle.

The seller doesn't have good credit and was having a hard time getting a car, so the previous owner financing the property suggested to roll the car into the loan ($15,000 car). The seller has fallen on hard times and has been unable to make the payments, now the previous owner is foreclosing on the property in 10 days. Here is the part that I might need an attorney to help with.... The paperwork is a hand written sheet of paper unsigned by both parties. that says "upon payoff/sale, subject to good payment bonus Gary (previous owner) will be entitled to a $35,000 return of principal/capital to reimburse me for prior losses" bringing the total balance to $198,000 ( which is much more than anyone will pay, so that he can foreclose and sell the property for profit) I attached the handwritten "loan modification".

ARV: $229,000

Repairs: $10,000

Closing Costs: $10,000

This seems like predatory/illegal lending and I have never come across anything like this. If I can help this guy, not only can he walk away, but I can get a great property. Should I consult with an attorney? If so can anyone recommend a good one in Phoenix?

Well wishes,

I got an interesting foreclosure lead yesterday that I could use some help with. The seller purchased the property in 2010 using seller financing for $155,000 and he put $1,000 down and $1,000 toward closing costs. His payment was to be $800 a month interest only during year 1. Year 2 his monthly payment was $900 monthly with $800 going towards interest, $100 to principal. Year 3 the monthly payment was $1,000 with $800 toward interest. The payment has remained this way since 2013. So he should currently owe $140,000 in principle. 

The seller doesn't have good credit and was having a hard time getting a car, so the previous owner financing the property suggested to roll the car into the loan ($15,000 car). The seller has fallen on hard times and has been unable to make the payments, now the previous owner is foreclosing on the property in 10 days. Here is the part that I might need an attorney to help with.... The paperwork is a hand written sheet of paper unsigned by both parties. that says "upon payoff/sale, subject to good payment bonus Gary (previous owner) will be entitled to a $35,000 return of principal/capital to reimburse me for prior losses" bringing the total balance to $198,000 ( which is much more than anyone will pay, so that he can foreclose and sell the property for profit) I attached the handwritten "loan modification".

ARV: $229,000

Repairs: $10,000

Closing Costs: $10,000

This seems like predatory/illegal lending. If I can help this guy, not only can he walk away, but I can get a great property. Should I consult with an attorney? If so can anyone recommend a good one in Phoenix?

Well wishes,

Jain Prash I don't know what kind of financing you are capable of obtaining, but a 5 year Interest Only may be worth considering in order to cash flow. I know there are some lenders with great I/O programs still. Don't pass up a good deal in any major CA market, because you with thank yourself for the appreciation one day.

@Pete Edmonson - if you wanted to shoot over the financials I would be happy to analyze the deal for you, and then walk you through the process. 

Happy Investing!

Supply and Demand is determined by underlying factors of population growth, job growth, and historical vacancy. Certain markets have peaked, and supply has finally caught up with demand, and some markets are currently still under supplied, but as long as these underlying key indicators remain as strong as they have I don't see a "bubble". Just the market cycling as it has done since the beginning.