All Forum Posts by: Account Closed

I've never been to Detroit so this is only my opinion based on what I see elsewhere. It's REALLY hard, near impossible, to revitalize areas that become low end rental areas. And if I'm not mistaken that is what's happening in Detroit (city) on a large scale.

When all the buildings around you are thrashed out, and the tenants are low end, are you really going to spend money fixing up the house/neighborhood? No, so it will just keep spiraling downward.

Unless there is a massive push back towards middle class owner occupants, it will never improve. They would basically have to start with the best area and then revitalize street by street around it.

You're welcome. It's very useful since you get the last payment and current balance.

You can't do it with all banks though so it really depends.

Picking up the phone and calling the automated system.

Erick, your response just confirms my statement that you don't know how to handle this. Why are you so attached to this deal?

Pick a note that you actually understand and build from there. I'm not trying to give you a hard time, just steer you in a better direction.

Please don't take it the wrong way, it's really constructive criticism: it sounds like you really do not know enough about this type of deal to take a stab at it, regardless of if it's a good deal or not.

There's a good and bad way to invest: top down and bottom up. Top down is finding a deal you know nothing about and trying to make it work. Bottom up is incrementally building your business through adding building blocks over time.

Pick something simple and make it work. Then look into something more complicated if you really need to.

Hey Joel,

I saw you mention this several times. I'm just curious, what do you think was wrong with your business model? Were you selective enough in who you were hiring? I believe you but I don't understand that out of 50 agents, there weren't a single good performing one worth keeping.

Consult with your accountant / financial planner. No one here knows your situation and what's best for you.

Then yeah, it's a risk you take, but if you buy a BK note with no equity then you know what you're getting into and you got the appropriate discount.

"my goal is to protect my position in all cases", there is no such thing as protection in all cases when it comes to no equity notes, and even less so no equity BK notes. That and 1st mortgage foreclosures are some of the riskiest notes.

Now that you got all of the warnings about due diligence..

The short answer to your question is yes, you can read all of those in PACER. Looking at all of the documents in the bankruptcy helps you build a timeline, or back story, to the loan. It's very useful in understanding which type of borrower you're dealing with.

Aside from checking if the lien was stripped, take a close look at the voluntary petition to see what the person's income was, what assets they have, if they wanted to surrender the house, etc.

PS: "A lien could be valid today and gone tomorrow." Are you talking about notes with or without equity?

Hey Scott,

It's hard to explain such a broad subject in one post. I suggest reading the forums, blogs, webinars etc about it.

Basically they are notes backed by real estate where the person stopped paying for one reason or another. Very often it's because of a temporary hardship such as unemployment, divorce, illness etc.

Most sane people don't want to get foreclosed on as long as they see the light at the end of the tunnel (aka hope). So generally you have 2 ways to make money - through an agreement with the borrower or through the house (ie foreclosing and selling it).