All Forum Posts by: Christopher Wraback

@David Michael thanks for your response. How do I officially become the lien holder though? Are there any documents I need to file with the court and if so, which ones?

Hey BP!

About a year and a half ago I started a real estate investment management firm and most of my business was in the foreclosure realm. As my business evolved, I started another company that helps homeowners out of foreclosure in several ways, where I explain all their options and advise them on what is in their best interest. I assist them throughout the whole foreclosure process with foreclosure, legal (the attorney I work with conveys this advice), financial, and credit advice.

Recently, an attorney friend of mine was telling me about a client of his that was in foreclosure where the homeowner was making payments on time for the first mortgage, but she couldn't make payments on the second mortgage. Thus, the second mortgagor filed for foreclosure on the house. My attorney friend asked me if I have ever bought a junior lien to which my response was no, but I would definitely be interested.

My goal would be to buy both the junior and primary liens and re-arrange the financing so that it was all consolidated into one payment at a lower interest rate to me, in which then I would sell the note to a lender or help her refi out of the loan payment to myself into a loan payment to another lender.

My questions for anyone (preferably if there is an attorney out there with experience in this space) are:

1. How do I pay off the liens without obtaining ownership in the property?

2. How do I place a lien on a property after paying off the liens?

3. Am I able to sell the note to a lender or a third party and if so, how?

This is also pertaining to New Jersey law.

Thanks to all and looking forward to a great conversation!

Rocco hit the nail on the head with this one. However, if your insurance company calls you back and says that they can't get the rest of the money from the plumber, then you should go to court, because from the facts you stated, the plumber is majority at fault and $1500 is pitiful. And you don't want to have a claim this early in the property with your insurance company when you shouldn't have to.

I would have a consultation with an attorney. The real estate litigation attorney I use is Ms. Frances Tomes in Freehold, NJ. She's a fantastic attorney and has helped me out in the one situation I had with a property. If you want her contact info, message me so I can give it to you. (Unfortunately BP doesn't allow contact info to be shared on the forums)

If you're looking for one up by you, I know a guy I work with for foreclosures, Mr. Lawrence Frascia. He does real estate litigation as well although I've never used him for that but he's a great guy so if you prefer closer definitely reach out to him.

Rocco hit the nail on the head with this one. However, if your insurance company calls you back and says that they can't get the rest of the money from the plumber, then you should go to court, because from the facts you stated, the plumber is majority at fault and $1500 is pitiful. And you don't want to have a claim this early in the property with your insurance company when you shouldn't have to.

I would have a consultation with an attorney. The real estate litigation attorney I use is Ms. Frances Tomes in Freehold, NJ. She's a fantastic attorney and has helped me out in the one situation I had with a property. If you want her contact info, message me so I can give it to you. (Unfortunately BP doesn't allow contact info to be shared on the forums)

Nice. If you qualify, you should also do an FHA loan, and find a duplex with a basement. If you're comfortable with it, you live in the basement, rent out both units of the duplex, and live for free and potentially enjoy a nice cash flow.

You want to avoid apartment complexes in NJ because taxes are high and landlord laws suck. If you have a 40-unit apartment complex, there's a high likelihood you'll be trying to evict at least 2 people a year and it will take you anywhere from 2-6 months to do it. The other option is to find apartment complexes with companies that are motivated to sell, that way you might be able to get the property at a discount. But those are difficult to find so you just have to be patient and on the lookout.

What NJ suburb? What are your income and expenses? Curious so I can see if I can provide some guidance.

If you're okay with the noise, I would recommend doing a student rental in Glassboro, near Rowan University. You'll be getting top dollar rent since you will be paying per student rather than for the whole unit, you won't have to worry about missed payments since the lease is guaranteed by the parents, and you won't have to worry about vacancy because when they move out, they get their friends to move in. You need to be really clear about your expectations, and since I only graduated from college a year ago, I enjoy getting to know the tenants and working with the parents.

If you're interested in learning more about student rentals, feel free to reach out to me!

For corporate formation, I recommend Ms. Frances Tomes in Freehold, NJ. She handles corporate formation for all of my entities and does real estate litigation as well.

Her info is:

tomeslaw.com

1 West Main St, Freehold, NJ 07728

Also, I recommend having separate attorneys that specialize in specific things. For example, I have a corporate formation and real estate litigation attorney (Ms. Tomes), a real estate contract attorney, a foreclosure attorney (for my foreclosure investing business), and a closing attorney. All of my attorneys specialize in each of what I listed and are the best at what they do.

Hey Jose, from my experience, hard money lending generally covers 85% of all money needed, and has an interest rate ranging from 10-12%. I've never experienced points with any of the lenders although some do charge 1 or 2 points if you're interested in bringing the interest rate down, but it doesn't really make sense. The only time you use a hard lender is when you are rehabbing a property and plan on selling it as soon as possible (within 6-8 months) or refinancing out of the hard money loan for a better interest rate.

Hope this helps and best of luck!