All Forum Posts by: Edward Adams

Hello all,

I've launched a new real estate investment company that will be Wholesaling and Acquiring properties using creative finance and other strategies. But I'm curious, any suggestions and guidance around launching this company as a LLC vs. a S Corp? Also, should I be creating 2 separate Entities?

One new Entity for the Wholesaling side of the business, and another separate Entity for acquiring properties for my Rental Portfolio?  I know there are both liability and tax implications to this decision.

Any help that can be provided based in someone's actual business history will be most appreciated.

Ed Adams

I'm looking to do a flip on a property that has a reverse mortgage loan on it - it's in arrears, and the former owner is now deceased. The reverse mortgage lender owns the title to the property.

I know that the balance of the loan is about $120k less (balance is $230k) than the ARV (resale value) of this property $350k. Probably about $50k in rehab, mostly cosmetic work needed on the property.

As an investor, if I contact the reverse mortgage lender, would they be willing to sell this property to me for the balance of the existing loan (or even for the amount - $60k - that is in Arrears)?  Can you do a "subject to" deal on a Reverse Mtge loan IF the title is sitting back with the lender?

Bottom line, is there a possible deal here if I can somehow get title to this property from the reverse mortgage lender?

In a Foreclosing process that ends in a Sheriff sales, what happens to existing State dept of revenue (tax) liens?
Right now I have a home in PA that has 4 separate state of PA tax liens totalling $46k for a homeowner I'm dealing with.
Now, this house is commonly owned by a divorced couple that is still on the title together. These liens belong to the husband-only.
They may have a Buyer step in and buy the house, and there is enough Equity in the house (profit from the sale of this house) to actually pay off the $46k in tax liens. However, the husband and wife don't see eye-to-eye on this potential sale so this sale may not happen.
If the house ends up getting foreclosed on and someone/Investor buys the house at the sheriff sale, what happens to these Tax liens? Are they wiped away or would they jump from being placed on this property to being placed back on the Husband's credit report?

Good question Wayne, I'm not sure.  I'm a newbie to subj to deals hence my initial question.  So even if the homeowner worked out a deal (not negotiate down) to bring Heloc current (not paying entire balance due, just the portion in arrears plus all late fees and interest), could Heloc lender (2nd) still call the loan due once a subj to sale takes place?  This would be "outside" of a short sale.  First mortgage balance in arrears gets paid in full and 2nd Heloc lender is now current.  Still too risky of a deal?  

I'm analyzing a pre-fore/subj to and the 1st mortgage (balance due) is not too onerous. 2nd creditor in line (Heloc) balance is very high.  I'm not sure how to proceed with Heloc creditor in terms of negotiating with both lender and existing Homeowner.  In theory, my goal would be to negotiate this high Heloc balance down for the homeowner, then in turn, take over existing mortgage Subject To, and find a tenant buyer (Lease Option) on this property.  Any thoughts on how to remove Heloc lien on this property so I can take over Deed and Title?