All Forum Posts by: Moises R Cosme

@Francois Guerrier I am glad you found it helpful!!!  We have had to grind a lot harder in order to keep our pipeline moving; every opportunity we get, we try to make the most of it.  

Clinton, message me; I should be able to put you in contact with someone that can help (or at least walk you through all of your options at no cost to you). 

Susan, 

Each deferral agreement is negotiated individually based on the investor that backs your mortgage.  Your mortgage servicing company can provide you with the specifics of your mortgage; I highly recommend looking at the terms of your specific mortgage instead of taking generic advice from an expert.  

Real estate experts are not mortgage experts; mortgages are legal instruments that are regulated by multiple federal agencies.  Additionally, if your mortgage is not owned by Fannie Mae or Freddie Mac there are significant limitations to the CARES Act.  

2008 was a nightmare and a lot of it was fueled by people following generalized information/advise provided by experts.  

Key questions:

1. Who is the owner of the investor group?  What is their background?  What is their track record?  It is important to evaluate the individual that heads the investor group.  

2. What is the track record of the company?  Where are they located?  How many employees do they have?  How long have they been in business?  What do past investors have to say about them?

3. What is the investment?  What are the numbers?  What is the return on your equity?  Do the projections line up with the realities of the market?  Try to question their assumptions, particularly as it pertains to rent rates.  Ask for profit and loss statements for the last 4 quarters (get them broken out by quarter) and see if you can match their results with their projections (for any project they have done).  A good investor group will run separate P&L's for each investment and they should have a record of their projections as well.  

4. Binders - ask if they will provide you with copies of the insurance binder on the subject property; they should be willing to provide you with a redacted version of the policy; approach the situation as if you are buying the building yourself!!  

I hope this helps, if you have further questions check out my profile & feel free to message me.  

Jerry, 

1. What county are you lending in?  What is the median price for single family property over the last 90 days?  On average you should prepare to lend 75% of the median price for property in your market.

2. After estimating the average amount of cash you will need to lend on each property, your next step is to find an interview an Attorney that will close all of your loans.  Do not rely on the Buyer, find your own Attorney; I recommend getting all of their credentials, the title insurance company they write with & insurance info.

3. Work with reputable Buyers; in our case, we work with the same lender each time - makes the process simple for us.  

If you found this helpful, check out my profile and send me a direct message if you have further questions. 

I disagree with Bjorn Ahlblad, Agents are not Attorneys or Contractors; Agents facilitate purchases in the real estate market.  This is important, Agents are not qualified to make substantive judgments on areas beyond their practice.  Agents do the best they can & they should be reading through agreements and doing their best to guide you, but at the end of the day an Agent is not accountable for representations made by a party to a sales contract by a Seller or a Buyer.

I do not write this to duct responsibility, I write this so that there is some clarity as to how an Agent's area of expertise/practice should be delineated.  I am an Agent, I do not rely on other Agents when I make purchases or enter into contracts - I force my Attorney to walk me through all of that, if he fails give me good advice then I have recourse through him.  

You are welcome; I hope my response helped. 

Yes, taking equity from one property to purchase another is a great strategy; it is something we do regularly. 

Awesome!!! 

Mark, thanks for sharing your experience; I think this is really useful for the forums.  There are so many things discussed on the forums that sound great in theory, but have asymmetric downside risk.  It sound like you have worked through the situation & are nearing the end.