All Forum Posts by: Dave Van Horn

Hi Kris,

Good question. I would honor their lease but when it's up, just don't renew it (with proper notice of course).

Best,

Dave

@Clay Sellers

As someone who has multiple Family Trusts, I'd try sending it to the property address that you have on file. The tenant/occupant may forward it to the trustee but there's no guarantee.

If you don't hear back, there's probably not much you can do since trusts often provide anonymity for the owners.

Best,

Dave

@Fred Bear

To start:

"Is it all separate utilities?"

"How much common area is there?"

"Are they two bedrooms or 1 bedrooms?"

"Are you required to have a dumpster or will the city pick up the trash?"

"What type of heat is in the building?

Hi Alex,

I would suggest looking up @Amy Wan and @Jillian Sidoti

http://www.crowdfundinglawyers.net/amy-wan-esq/

Best,

Dave

Thanks for the mention @Chris Seveney

@Nichole Stohler

Good question! I'm sure there is a multitude of similarities and differences but I'll try to do it justice:

Reality Shares is described as an online real estate investment marketplace where individual and institutional investors can participate in private residential and commercial deals across the US. They connect accredited and institutional investors with pre-vetted real estate companies and operators looking to raise debt and equity capital.

PPR is a mortgage investment fund that specializes in 1st and 2nd residential mortgages, as well as REO properties. We pool together private investment capital (currently from accredited investors) to purchase these in bulk from large banks and institutions that we either re-sell at a retail level or we have serviced. Investing in any of our funds is comparable to purchasing shares in a non-publicly traded company.

So we're in a different facet of the Real Estate industry, investing in different things, but we do both offer opportunities to investors online.

I'm not sure of everything their fund has to offer but I can list some key differences I know of between the two (and I welcome anyone else who has participated in either to chime in):

- Realty Shares currently has a lower minimum investment to participate (at $5,000) whereas ours is $10,000.

- I believe investors in Reality Shares average returns of 8 to 12%, where as we currently offer a steady preferred return of 10%.

- Our fund is only a 3 year term that invests in multiple notes, I believe the term varies based on the project with RS.

- We do not charge any fees to invest. Reality Shares is free to register, but they do charge a 1% annual fee of the aggregate invested amount to manage the investment. They may also charge an “over-raise” fee to cover initial legal fees related to the investment and other specific expenses. On debt investments, RealtyShares typically takes a servicing fee in the form of a "spread" between the interest rate being paid by a borrower and that being paid to investors

The benefit of investing with either of us, is that's it's passive. Your risk can be much more diversified with RS since you have the option of investing partially in multiple deals. This is can be much safer than if you were investing in any one single property or project. And likewise, with PPR, you're more diversified than investing in any one note and can't lose any more than your initial investment.

Hope this info helps! Do feel free to personally message me if you have any other questions.

Best,

Dave

Sure thing, @Logan Turner, happy to help.

Many seller financed folks like to see 80% or better LTV (Loan to Value) since this note is considered non-conforming to the majority of the marketplace.

Location plays a role in the value in the sense that some states have shorter foreclosure timelines and lower foreclosure costs than others (or a better economy, eviction laws, etc).

Best,

Dave

@Logan Turner I tend to agree with Scott. I don't have enough information to price note accurately. A lot depends on where this is and what it's really worth. 4 months pay history is not much on a re-performer. What are the reps and warrants you're offering on this note?

Your best bet, may be like Bob suggests, is to sell a partial for now until you get further seasoning.

@Marshall Martinez Not sure it's easy to value this hypothetical option. It would help to know what Bob is paying for the remainder in 24 months. The short answer is: a note (or note option) is worth what a buyer is willing to pay or accept in yield

Best,

Dave

Have a question about notes? Get it answered TONIGHT! Just one hour away! Register at the link above!

Hi @Elizabeth Wilson

We usually send boots on the ground out to the property to determine ARV like a Realtor, BPO agent, Appraiser, Home Inspector, etc. It differs depending on the property (and the level of assessment we need) and who is available.

I'm not familiar with any personally but I do know there are also Home Inspection companies that work nationally that could also assess the ARV for you as well.

Best of luck,

Dave

Thanks for the mention @Percy N.

@Pavel Sakurets

I agree with @Christopher Winkler, for individual investors like yourself I tend to think it's easier to go with these servicers, loan exchanges, note funds, or to find individual note sellers.

Acquisitions isn't my department or specialty at PPR but I believe there are about 12 different trade desks at Wells Fargo alone, and out of those 12 or so only a couple deal with 2nd mortgages. Most of these trade desks don't interact with each other, which is more or less standard protocol with such large institutions.

The other thing is, Wells Fargo has various complex entity structures, not to mention they service there own loans as well as loans for about 3,500 investors (which can be an assortment of large players) and they don't always cooperate because they're essentially separate companies.

As far as US Bank goes, it can be just as complicated. Many companies that own notes fly under the flag of US Bank for various reasons so to find the proper trade desk that sells notes in just one area is kind of like finding a needle in a haystack in my opinion. Which is why I agree you're better off with the types of sources I mentioned above or waiting for your current sources to provide notes in your area. Not sure what your endgame here is with buying locally. 2nds can be purchased in any state and if we had stayed local I don't know if we'd be in business for the last decade. I know a lot of what you look for depends on your strategy and business model, but I would suggest try looking outside your area as well to open up your options.

Best,

Dave