All Forum Posts by: Pat Lione

Do you lend in CT?

@Jason.  I got  pretty good quotes from Quincy Mutual Group and Vermont Mutual.  Hopefully you can use them in the Midwest.

I have MiddleOak now.  Not very happy.  It appears CIBA is not offered in CT

Need help finding insurance.  Residential multi unit properties in LLCs.  Currently have one commercial policy for all.  Thanks in advance.

I am forming a 50/50 partnership LLC for flipping rehabbed properties. 1st question should I use myself or an llc for my 50% membership? 2nd question is taxes. Do we elect to do our own taxes (each member) at the end of the year or tax the partnership llc. Thanks

Contact your state representative and ask to have seller financing de-coupled from the following bills: HR4173 and the ‘Restoring American Financial Stability Act of 2010′.

Your Call To Action – Make A Difference!

Here is a sample letter:

Dear_________:

I strongly encourage you to assure that no restriction of seller financing is inserted in S3217 or in any bill created in conference committees. This would have a negative impact upon the same consumers that the Anti-Predatory Lending legislation is supposed to be protecting. I am not opposed to the regulation of the mortgage industry as a whole, but only of private property owners who would seek to offer terms of sale of a property for monthly payments in exchange for equity.

Thank you for your time and attention to this matter.

Note: – use your own words and experience. In other words, say that you are a Realtor or mortgage broker, or investor, or you inherited a house that you need to sell or that you are a landlord and want to sell but your buyers cannot get bank financing or whatever situation is real to you.

Threats To Private Property Rights

HR 4123 poses the following threats to the security of private property rights, and to the stabilization of the housing markets in many communities:

1.On its face, this legislation appears to merge individual taxpayers who accept installment payments for their equity with banking institutions, mortgage brokers and originators who sell money for a business.
2.When a seller offers to sell their own property to another and accept payment for equity, there is no loan, but rather terms of a sale.
3.Banks lend money that the borrower can then spend as they see fit.
4.In the current market, if there were no seller financing, there may be no financing at all in many communities.
5.Millions of soon-to-be-retirees who have worked a lifetime and prepared for retirement by investing in properties that can be sold in exchange for installment payments providing supplementary income will be negatively impacted by this legislation. The legislation limits individuals to only one transaction every 36 month. Imagine trying to liquidate a large portfolio at this pace.
6.The dramatically increased number of individuals and families who are going through foreclosure may only retain the ability to buy a future home for their family by finding a seller amenable to accepting an installment sale
7.A homeowner who may have sold their previous home with seller terms has now lost their job and is about to fall behind on payments. However, they have a little vacation cabin. In order to sell quickly, the cabin has to be sold on terms to provide enough income to keep the homeowner current on their present homestead. This scenario would run afoul of this legislation as it is currently written.
8.While this legislation regulates large organizations with teams of legal people (consider the contract language that is being used in the resale of foreclosed homes being sold by banks) it puts the individual taxpayer at a tremendous disadvantage on both the selling side as well as the buying side, thereby making homes less accessible to many people.
9.Lastly, many people in the United States live in manufactured housing for which there are basically no loan products available. Once the manufactured home reaches a certain age, although there is still remaining useful life in the home, no loans are available for homeowners. How will these properties be bought or sold if not with a seller accepting installment payments?
Specifically, the language lifted from failed HB 1728 and added to these bills, the former, Section 101, 3, (E) does not include, with respect to a residential mortgage loan, a person, estate or trust that provides mortgage financing for the sale of 1 property in any 36 month period, provided that such loan:

(i) Is fully amortizing

(ii) Is with respect to a sale for which the seller determines in good faith and documents that the buyer has a reasonable ability to repay

(iii) Has a fixed rate or an adjustable rate that is adjustable after 5 or more years, subject to reasonable annual and life-time limitations on interest rate increases, and meets any other criteria the Federal banking agencies may subscribe
Contact your state representative and ask to have seller financing de-coupled from the following bills: HR4173 and the ‘Restoring American Financial Stability Act of 2010′.

I invite you to follow up with your Senators (before the Senate bill is voted upon) and Congressmen (regarding an amendment should it pass the Senate) with emails, phone calls, letters and personal appointments when they’re back in our home states. The bill, as written, has already passed the House and will soon be voted on by the Senate. We need your support and the support of every property owner you know.

You can locate contact information for your Senator at http://www.Senate.gov and you can find your Congressional Representative at http://house.gov. Remember, we are asking them “to have seller financing de-coupled from the following bills: “HR4173 and the Restoring American Financial Stability Act of 2010.†Contact them today!

I did send a letter and he akknowledges recieving the letter in the court papers. What he is claiming is that it is improper for me to retain security deposit for motor vehicle damages. The car was in a common area (laundry room) Is it really improper for me to hold back deposit?

I recently had a tenant move out. I did not return his security deposit due to the fact that he damaged my Porsche that was in the garage. Long story short. I rented a couple of rooms in my house to a proffesional with a doctorate degree. Part of the deal is he had use of w/d that was in my garage. This guy was using the laundry one night and decided that it was a good idea to move both my bicycles and lean them up against my car. He did this rather forcefully because he left deep gouges in the car. When I asked him why he told me he didn't think I was using it so it was ok I got an estimate for $2700 to fix the damages. His security is $1800. Upon moving out i asked for the the difference after left over utilities and cleaning. In the lease it specifically states "Tenant is responsible for all repairs due to his negligence" Is the garage considered common area since that is where the laundry is? This guy had a lawyer contact me telling me it was unlawful for me to hold his security due to motor vehicle damage. I figured he was just trying to scare me into writing a check. Yesterday I recieve notice that he (tenant) is suing me for double the security $3600 because i held it for more than 30 days. This guy now denies this ever happened. He really has some balls.

I rent purely section 8. I get alot of calls from my newspaper advertising and was wondering when i recieve these call can I just blatantly and legally just ask if they have section8? Reason being is the properties are strictly cashflow properties that I've spent lots of money to rehab. I screen and have gotten very good sec8 tenants. Market rents for these neighborhoods are less than sec8 pays. People familiar with sec8 know that these tenants don't want to lose that voucher. Other non sec8 really have nothing to lose and the law is not on myside so i would just rather avoid regular tenants.

You mean at HDepot. I use them all the time we call it pro desk. Thanks