All Forum Posts by: Bob Floss II

@Camille Johnson Network, network, network. In almost all of my private money deals, the investor and borrower already know each other. You have to get out and talk to people. 

@Saul Trejo

It won't let me post the video. Go to youtube and look up floss law casino and you'll see it. 

@Saul Trejo I'd recommend closely following any information that comes out about the south suburban casino. I did a video last week on the topic of casinos and the south suburbs are all putting forth their pitch for getting the license the state issued for the new location. Some of the towns you mentioned are in the running. 

@Jake C. @Andy Mirza The relationship between the HOA and entities purchasing npn's has been murky and heavily litigated. When you're dealing with new rulings, not every office and attorney stays up to date and we run into different interpretations.

The way I understand the current interpretation, the entity purchasing the npn steps into the shoes of the lender and it doesn't trigger the 6 months payment. It's only upon the sale of the property that the end buyer must pay up to 6 months (which always ends up being 6 months) worth of hoa payments. The npn buyer should only be taking over the ongoing hoa payments during the course of ownership. When negotiating the deal, you should definitely still ask for a credit towards the hoa as you don't know the status of the account for the unit.

BTW, I left out the association has the right to evict the owner and rent out the unit. Like Andy said, you need to watch your margins and negotiate smart. If the unit is abandoned, the association can file an eviction and has the right to rent out the unit and collect the rent to bring the account current. My concern is now you have a tenant with a legal right to the property for a year and you have to assume the lease and wait for it to run out.

As Andy can attest, you can still make a great profit of IL condos, you just have to run your numbers. 

@Charlotte Dunford Sellers attorney should be the party drafting the document as their client is acting as the lender. The cost to prepare the documents should be negotiated. 

@Dusty Kozlowski Welcome and good luck. There is a wealth on information on the message boards and podcasts to get up to speed. 

@Jake C. Several potential obstacles scare investors away from Illinois condo notes.

First, the general Illinois issues that push away most Note investors, namely our long foreclosure process. Second, the issues related to the HOA possibly restricting transfers through right of first refusal or restrictions on rentals. Third, if the association is not 'healthy' or too many units are rented, it can be extremely hard to impossible for a buyer to get a mortgage. If you are limited to a cash buyer pool, the units sell for a large discount on the open market.

Good afternoon Brian. Did you have an specific questions at this time? If you are just looking to network I'd be happy to talk tomorrow.

@Evan Rymer The best options are 1) Broker 2) Attorney 3) Title Company.

I've noticed more and more Brokers are declining to hold earnest money. Attorneys typically have our own escrow account, but not all want to use it for earnest money. I'm always happy to hold earnest money for my clients. I'm not a huge fan of title companies holding earnest money because I've had some bad experiences. 

@Kenneth D. Smith Congrats Kenneth, hope everything goes well.