All Forum Posts by: Logan Hicks

I hate to say it, but your agent is an idiot.

You are in a buyers market, and LA had one of the countries worst losses in value during the crash, if Im not mistaken in the mid 50s percentile range.

It turned LA into a disaster, a foreclosure super site, and a nightmare for banks.

People will look at your property, at the comps, see that its listed too high, and see the 300 or so other properties in your area, immediately browse past your property, and toss yours into the "No" bucket. 

In a sellers market, you mark up to who sold last, and at what. In a buyers market, you sell under your comps. Otherwise you arent a good deal, and noone will buy. 

the property*

Why get the LLC in MD?

Regulations stipulate to get an LLC to hold the company, but the law doesnt require that the holdings company be registered with the state in which it originates.

Wait, so my brain is slightly melting form the extremely long term of sleep deprivation.

NPN in essence, is you stepping in during the pre foreclosure phase, buying "the note" from the mortgage holder, becoming the holder of "the note", and then you foreclosing on the individual instead?

Effectively, the end product is you regaining possession of the house if they dont pay the note back to good standing?

Is that correct?

"I'll add an example in case I'm not really clear:
Let's assume an initial loan amount of $60,000, $3000 / year of taxes and insurance, and a rental income of $1200 / month analyzed over ten years. Assuming that repairs and maintenance will be paid out of pocket. Total income would be $144,000 minus the out of pocket expenses. Please bare with me for simplifying all of this to get to the point."

There in lies the answer to your own question and problem.

Notice how you did your math with a 10 year piece, based on a 10 year mortgage, and standard repairs.

What you arent accounting for is a dead water heater, every 5-10 years. A new roof, every 15-30 (almost no real estate rental is going to be built brand new unless its from a builder.)

A generic roofing job will run you anywhere from 9k upwards to 20-30k depending on the size of the property, type, and slant.

Thats anywhere from 10% to 18% of your income gone, and to a single repair that MUST occur, and that will most likely occur during the note duration.

Always calculate for one roofing job, for 2 water heaters, and for at least 3 10k repairs in addition to your normal math.

Thats why I always say simply keep 8% in reserves of the property value in cash for repairs only.

You are looking for a combination of two things.

The first is called Active Financing Exclusion combined with Inversion.

Combine the two with Defference, and you will be able to indefinitely kick the can down the road.

You can also look into luxemburg, Irish twins, and singapore.

You might also want to look into the Shanghai business park tax shelter. 

https://www.rocketlawyer.com/form/loan-agreement.rl

http://opencbs.com/

http://sourceforge.net/projects/mifos/

http://www.datamation.com/open-source/62-open-sour...

A favor for a favor, especially since all of you are private lenders, and Im trying to figure out what rates I need to offer to get old debt of mine restructured into a positive payment history.

What should I do? Currently Im offering 20% and 20 points, is that not a good enough return for my ~600 credit score?

If so, how high should it be so I can find my yes?

Im definitely interested, especially sine its near St. Marys :D

Its a lot like selling a used car.

I compare it to what it cost to buy when it was brand new, what it costs now, and what its resell value is projected to be.

Properties are the exact same, just the different direction in concept of valuation aspect, instead of the lessor of the negative gains, its the largest value gain that is bought.

If you know what its worth, and what its being sold for, you know what type of deal you are getting, moreso than just a "good deal". Its a much stronger bargaining chip than just generic comps. It goes ahead and tells the investor exactly what theyll be gaining in equity, which is a major advantage against the average RE.

I dunno why more sellers dont have the appraisal done already. Its a known fact that its going to be asked for 9/10 times. At least if you have any sense if youre paying cash, and Ive never seen a bank tote the note on a house without an appraisal first.