All Forum Posts by: Leigh C

@Jason Faucher    I deal with about 30 or so flips a year in spring hill and end up with mortgages from time to time that might work.    How long are you looking to tie up the funds?    What type of rate are you looking for?   

@John Verduzco  No disrespect intended but 6% in 2nd position sounds really risky if there isn't a lot of equity.   You prepared to pay off the first if this goes downhill?     I've seen a ton of these types of situations get zeroed out in a foreclosure.  

@Olga Levin    Deed in Lieu won't work as that doesn't zero out the 3rd and any other potential liens on the property.    If you got the deed though and wanted to make everyone whole its an option.    Though questionable if the deal has the money on it to do it.

Maybe call the realtor's broker and ask for help, sometimes they stick their neck out to avoid future drama.    If you need the help I can run a quick title search if you don't know how.  

@Olga Levin I really hope this property is worth what you think it is.   I'd strongly urge you to figure out the actual value of the property in it's current state.

It sounds like this guy has nothing to lose and if there isn't an upside to the transaction he might just abandon it all together.    Each month he is further and further away from actually turning a profit for his effort.  Add to that if you are "annoying him" it may justify his unwillingness to himself to do the right thing and see the project to the end.      Leaving you to make the first whole or abandon your investment all together.

I'd be curious on the address. His 630k ARV with him already into it for 510k is already a bit tight. If repairs are 40k lets say he is at 550k. Selling for 630k minus 8% to close lets say puts this in very dangerous waters of going red. I'd call the realtor's phone number from a different area code phone (a friend's phone) and just ask for an update and his plan. Tell him if he is in over his head you would like to offer assistance.

@Olga Levin    Has he been paying you?

You need to relax from the sounds of things.        My best guess is him recording a second and third with the first "not allowing it" puts him in default with the first and allows for the first to foreclose.    Worst case, pay off the first in that situation at the foreclosure sale and/or protect your lien with a higher bid.   

Odds are this guy is in a little over his head and is really tight on cash.     You should re verify that the flip actually has equity and if it does I'd give him a bit more time to fix things.     Maybe verify that something is actually happening at the property too.    

They will award it to any backup bidder that meets the threshold for an acceptable bid.  It's possible nobody else bid of course and it will be put back on the market.

I'd get all my ducks in a row paperwork wise and see what happened. Then I'd find a new HUD agent as this one already showed you their skill set on the matter. I'd also watch to see what that property sold for, going over asking price on a hud isn't really a wise idea typically.

Hud has a billion horror stories, i'd be lying though if i said it didn't cause opportunities at times.

That sliver of land more than likely was worth more than 5k to someone local here.     

You should make the fan run on the same light switch as the light in the bathroom.    Forces them to run the fan.   Tenants rarely make good choices.

I wouldn't stress over it, sounds like the problem is resolved for now and they don't actually care.   I'd consider doing an inspection to make sure everything remains ok every few months.    

@Juliana Cortes    Welcome to the school of hard knocks.    It's typically easier than actually learning how to do this correctly, but sadly at times a bit more costly.  

@Account Closed    I wish more people got a dose of reality.     As for branding myself, i had a few news articles about me in the past and it caused my phone to be really annoying for a very long time.   I don't see the value in it. 

I don't look for new clients, I'm not looking for leads either.      Most on this site are looking for opportunities in networking.    I simply use it to kick around some thoughts I have and to communicate with the outside real estate world.      

As for telling this guy my thoughts...they weren't negative.    Energy like that is rare if he can actually maintain it.    Using that level of energy for buy/hold real estate is beyond a waste of his talent.   At least to my eyes.