All Forum Posts by: Linda Hastings

Thanks for sharing your custodian @Nichole Stohler. Haven't heard of them, but will check them out. 

@Bob Malecki  I like the idea of a personal property trust (own nothing, but control everything). Does it result in any added complexities though? 

For example, how does having a personal property trust work at the servicing end? Do you have to have multiple accounts with your servicer, one for each personal property trust? If so, does this result in any extra fees from the servicer versus if you just have one account that all your notes are under? I'm assuming here that in the case where you have your LLC as the lead on the deeds/assignments (JV partner not on them), you would only need a single account with a servicer that all your notes would be under...but perhaps this is not the case.

Why not just ask the servicer?

Although it may be too early to tell, I'm curious to see how this is going for you. Any updates?

As for educating the seller on why no one will pay him full price for the note, here are some thoughts. Since the borrower is behind on payments, foreclosure is a very real possibility. The time and effort (and cost) you will have to put into either working something out with the borrower or foreclosing is reason enough to get a discount on the note. At some level, the seller already knows this since he doesn't want to do the foreclosure himself. Also, even notes that are performing or re-performing will typically only sell at 80-90% of value. 

Your question is a bit vague. What aspect of new construction investing are you interested in? Residential? Commercial?

Are you asking from the standpoint of being the developer? If so, perhaps you should search or post in the Development and New Construction forum: https://www.biggerpockets.com/forums/44-real-estat...

Are you asking from the standpoint of funding someone else's new construction project?

Or perhaps buying a residential new construction property to use as a rental? This is the only aspect of new construction investing I have experience with. As with any rental property, it depends on the numbers if it will be a good deal or not. From experience though, watch out for new construction neighborhoods that are being actively marketed to investors as well as owner occupants. The developer will probably tell you that only a certain percentage of the homes will be sold to investors, while the rest will be for owner occupants. The neighborhood can quickly decline if what they tell you turns out not to be true and it becomes saturated with rental properties. It can also make it very difficult to fill a vacancy when there are a dozen others listed for rent in the same neighborhood that look exactly like yours.  Also expect that construction will take longer than they tell you it will. 

You may find the following threads helpful for getting started in notes:

https://www.biggerpockets.com/forums/70/topics/411...

https://www.biggerpockets.com/forums/70/topics/432...

As for note servicing companies, check these two threads:

https://www.biggerpockets.com/forums/70/topics/441...

https://www.biggerpockets.com/forums/70/topics/597...

@Lucas Allmon Mortgage Loan Purchase Agreement

I'm no expert (or attorney), but I don't think there's a limit on the number of times they can file. I think there are restrictions on how soon they can file for bankruptcy after a previous one was discharged though. 

One thing I've read related to Ch 7 is that the borrower may be more likely to start paying on the mortgage now that their other debts like credit cards and medical bills have been wiped out. I've wondered how true this is in practice though.