All Forum Posts by: Julie Falen

Matt was recently charged by the SEC with $9.4 million in fraud..... Raising capital for syndications that he spent instead on vacations, an Aston Martin and other items. He pleaded guilty to securities fraud in August 2022. Smart guy but not a good investor

Quote from @Matt R.:

Check out Matt's recent REI Harvard presentation. He really explains the sydication process well and more REI proven secrets everyone can use.

Matt also has a LA/Valley meet up once a month I also need to attend btw.

Quote from @Jon Reppy:

Is there any integrity any more ? Dose anyone know of a true coach for hire?

I am a big fan of Anthony Chara and success classes. He teaches great mf interesting class and, lik we RE mentor, his subjects work with each other with help and coaching from Anthony personally. I like Lindahl too but yes his group is pricey. 

Quote from @Wayne Brooks:

 @Joe Martella If this was an actual sub2, there are no foreclosure possibilities…which is one of the huge risk of selling by sub2.

@Julie Falen Was this a straight sub2 (title transferred to buyer, you hold no mtg from the buyer)?   What “contract” exactly was “sold to someone else”?

Hi Wayne.  The original contract between me and the buyer- who was a "mentor" of mine (recently convicted of RE Fraud for $9.4 Million) did not have any clause in it that allowed it to be sold or assigned....but it was.   I was too trusting and did not have an atty reiw thebuyer's contract. (Live and Learn).
Yes it was a straight Sub-2. I do not hold a mortgage or a TD - No title insurance on transaction between me and my buyer, and also none between my buyer and guy/corp he sold - and conveyed - it to. I think I need to do a "Joinder" in the lawsuit - which has 24 days before the statute runs out

Quote from @Joe Martella:

I think that you need to foreclose on the deal and get possession of the property back. I recommend that you look for your local REIA who may have business affiliates (attorneys) that understand real estate investing and may be able to help you. Good luck!

 I wish I could foreclose but there is no way to do that. No recourse in the contract and as Wayne Brooks said, it's not possible on a Sub-2.   I'm going to sue for breach of contract but it's a challenge.

I sold a property Sub 2 in 2013 on a 5-year balloon. No escrow. Buyer sold the contract to someone else. Balloon was due in 2018. He has not performed, has not paid taxes or insurance so my balance went way up with forced escrow account, and loan has gone to 10% (It is/was a HELOC) I need legal help to bring suit as statute runs out August this year! Has anyone else encountered this issue?

Quote from @Alyssa Patterson:

I’ll keep trying to justify doing this, until I see there is bigger reason for me not to. If that makes sense. Lol I have a lender willing to work with me, I have a cash flowing business if I need to come out of pocket. I’m using this method to build wealth over time, into my retirement potentially. Don’t you think that reward out weighs the risk of not profiting right away or having to put some more money in out of pocket. Like those are petty risks to me when I’m looking at the bigger picture. Do I sound crazy? Am I too optimistic?

 It will totally make sense - depending on how you structure things and work out your potential deals.   Think Long Term rather than short term as RE Investing is usually a longer-term deal to profit from.  I would highly recommend that you talk to your lender and ask about a 203K loan which includes Money for renovations, WITHOUT having to go the hard money route. You can do this loan with a 4- unit property too, which is good because you need to live in one unit for 2 years.  BUT - if the tenants are paying your mortgage - or MORE - and the cost of the renovations is in your 30-yr. loan - you will do well with the property and likely the equity in it within 1 year, definitely 2. The main thing is that you have a property which is gaining equity and appreciation, ideally, PLUS giving you some cash flow, AND you get to live for free while you look for other deals and places where you can put your money

Quote from @Bruce Woodruff:

Quote from @Bonnie Low:

No doubt housing is scarce is many areas. Nationwide, the actual amount of housing units needed is said to be so large it will take years for builders to catch up with new home builds. 

Please list your sources for this. According to very recent data, there are 15 million vacant housing units in the US. Of course not all of these can quickly converted to house people affected by this 'housing crisis', but there are a lot of units sitting out there. https://fred.stlouisfed.org/se...

Other studies show over 10% of housing units are vacant. https://ipropertymanagement.co...

Not saying that every city in this country has as many units available as there are people that want them, but that's hardly the point.

 Your data is misleading. Total vacant in US is about 10 million. For rent, only 2.9 million.  Dig deeper ruce https://fred.stlouisfed.org/re...

Quote from @Michael Deering:

Yes.  And it is immoral to dictate how another should use their property

 Then why are there zoning laws in every city and town, and laws dictating how to treat animals and disallowing pollution and so much more?

@Joe S. The US was founded on ideas of freedom from religious persecution and the idea that individuals could own property & get the rewards of their own efforts. It was not "founded" on capitalism or free enterprise. It was also founded by indentured servants, escapees from same, soldiers & deserters & people who believed in community, helping one another, ( think of community House raising/barn raising as just want example). .A founding father created concept of free libraries e.g. Capitalism as a concept, from Adam Smith, was based on enlightened self interest. Which in philosophy states that persons who act to further the interests of others (or the interests of the group or groups to which they belong, ultimately serve their own self-interest.

That is why cities from their beginning have had rules and zoning and boundaries for certain activities. It's why we have zoning now and need to update and adapt. It has nothing to do with socialism or communism. Rather it has to do with work to create communities that will serve our best self-interest by being better communities in general.