All Forum Posts by: G. F.

I wasn't able to get on the call. Do you have a replay or recap available?

Originally posted by Sam M.:

What lenders have their notes serviced by BofA? I recently followed up on a SS prospect (expired listing) where BNY Mellon held the note and the listing realtor told me that the process had to go through Equator?? After doing some research I realize this might be correct but it is a little hard to pin it down exactly.

More than likely the note belongs to a pooled securities wherein Bank of New York Mellon acts as trustee while Bank of America acts as servicer and/or default servicer. As for finding out and using as a strategy which lender, or in this case which securities use BofA as their servicer/default servicer, that would be pretty hard to.

Have them sign an agreement for the assignment fee. If they don't pay up upon closing, slap a lien on the property. They can't sell until your fee is paid.

Originally posted by Rodney Williams:

You may want to listen in.

I plan to bring a open mind to the call. I'm very interested in what he has to say. One thing I have learned in this industry is that what was yesterday often times is no longer the same today.

Originally posted by Rodney Williams:

Remember there is no one investor in these situations.

There isn't one investor but there is only one entity for each CDO. That entity, a special purpose vehicle (SPV), has a asset manager which makes decisions on behalf of the investors.

Originally posted by Rodney Williams:

Notes were cut up into pieces and sold into CDOs, so that each pool contained these pieces not whole notes.

Notes are actually pooled together. The pools are then separated into tranches with the senior tranche receiving a lower coupon rate (interest) in return for less risk (getting paid first).

Originally posted by Rodney Williams:

Therefore it would be possible for the investment to be written off.

Unless the underlying asset (meaning every single property) in the CDO is reduced to near zero, investors of the senior tranche will receive principal back.

That's why I agreed with JCC about the 100% write downs being unlikely. I think this call will be so interesting. With Bank of America, anything is possible.

Congrats Priscilla.

Be sure the taxes and insurance are reasonable. If you have the stomach to hold it a few years, this may end up being a cash cow.

Talk about buying at the bottom of the market. $100! Unbelievable. Again congrats.

If the tenants payed in cash, he should of issued receipts. Ask for copies. You can also ask him to fill out IRS form 4506-T which is a request for a copy of his tax return. He should of listed all income obtain from the property.

When closing, be sure to get the security deposits. Many landlords get stuck having to pay this out once a tenant moves or has to be evicted because they didn't collect it from the previous owner.

I'm looking forward to hear what he has to say on the call.

Nick,
Your usually right but I have to go with JCC and Scott Hubbard on this one. It defies logic that an investor takes a 100% loss and Bank of America keeps all the profit from an REO. Why would an investor ever foreclosure? If that were the case and I was an investor, principal right downs would make more sense. When an REO sells, that money goes back to the investor, albeit at a fraction of what their principal investment was. Take a second to think about it.

IMO, this guy doesn't know what he is talking about and you should vet him again before the call and not put the stellar reputation that you have built up here at risk.

$750 in NYC will get you a self storage unit :-)
Still not cheap here

Consider it a bad idea. There is no guarantee that the flipper will be able to refinance. Business to business loans are not subject to usury but it must be between two business entities (LLC, Corp, etc...). The problem is that properties titled in a business may not qualify for fannie mae/freddie mac underwriting guidelines..

Good luck.