All Forum Posts by: Rick Pozos

nope. You can go after the property IF you have a mortgage or deed of trust.

Foreclosure is the way to get made whole, but you need a mortgage or deed of trust. 

You need to go through a title company or attorney, YOUR ATTORNEY, not theirs and have them explain your state laws. By the questions that you are asking it sounds like you are about to make a VERY risky move. Education is SO important. Dont get all your knowledge from here and YouTube. PAY an attorney. They know the law.

You are starting in a tough time. If you can do good now, it will only get better in the next few years. Get to some meetups and meet some people

You need a deed of trust or mortgage that is recorded in the deed records or county clerk's office. It can be a second, but if they choose NOT to pay you, right now, there is no recourse. With a deed of trust or mortgage there is notice to the world that your 2nd is due on sale or according to the terms. You can also foreclose on a 2nd that is recorded.

You can NOT foreclose on a promissory note alone.

I saw a house that was about to get foreclosed. I talked with the homeowner and talked to him about how I could help him. He said he did not need any help. He was going to stay in the house for another 3 years for $1300 per month. I said WOW how is that possible, the property taxes are about that much?? He said that he was going to sign a 3 year lease with his brother in law for $1300 per month. I thought that was impossible, but he stayed. He paid the bank for 3 years. The crazy part is that the house was about a 500k house!!!

Bad people will be bad no matter what.

I have also seen people put bad tenants in place at a higher rate of rent only to have them not pay any rent ever and have to get evicted. They just wanted to have a lease in place when they sold the house and they could say that they had great rent coming in.

If I see someone selling forks for $1 each and I know that I can sell them for $2 each what is wrong with getting 1000 of them under contract and selling the contract or just selling them the forks?? Lets make some $$$. Its the American Way.

You can wholesale anything. EVERYTHING at the grocery store has been bought and sold at least 2 or 3 times. Cars are basically wholesaled to the dealers who sell them at retail price. Clothes are wholesaled through Walmart or Ross or any department store. Just be prepared to close on the deal.

If you contract, dont get a bad name for yourself by backing out on deals.

Hey @Kristi Goebel if you look at their website it looks like they are NOT syndicators, they are selling fractional shares of properties. They are taking something simple like buying a house and breaking it up into little pieces and calling it easier to deal with. Personally, it looks like they are complicating things and I am sure they are getting a management fee on top. 

Learn more on your own. The easier things are, the lower your return will be.

If you have worked for investors in the past and made them plenty of money, TALK WITH THEM!!!

Ask them what investor groups they are in. What investor clubs can you be a part of in your local area?? How are others finding deals in your area?? 

Ask them directly, "Wow this house needs quite a bit of work, How did you FIND this one??" Listen to what they say and figure out how YOU can do it. It does not have to be exactly how others are doing it. Make it your own way.

You may be able to put money into a syndication and if they do a cost segregation you might have a loss in that year. I dont know how much money you make so I cant tell you whether you would pay taxes or not. Investors do syndications so that they can lower their taxable income in the first year. BUT remember when the partnership sells the property you will have a big gain at that time.

First, dont buy retail price. Buy a rehab from a distressed seller. You should have equity to begin with.

So the house is worth 250k, you should be in it for 200k MAX.

With a 200k mortgage at 5% or 6% you are probably going to pay about $1500 to 1600 per month. Rent should be at least 2k for a 250k house. If things go crazy down, it is worth 150k. BUT rent should still be at least 1k per month. This is WAY worst case scenario. Maybe you pay $500 per month for your rental property. Again this is like almost apocalypse situation. 

Most likely, your 250k house that you owe 200k drops in value to 220k maybe 210k. Rent goes from 2k per month to about 1800 per month. Maybe you break even a few months here and there. No big deal. Over the next 10 years the value is going to be 500k and rents are going to be about 3500 per month. Time fixes everything. Hold on for the ride and dont sell.

@Joseph Hernandez there are several ways to not let the seller know how much you are making. If you can get the title company to hide your side of the transaction, no worries. If the buyer is using hard money or bank money that might not work because they want to see the whole transaction. Some hard money lenders are ok with an assignment fee, some are not. 40k in this case, I think would not work for most lenders.

But then again if you are making 40k, what is a few $1000s. It is just a cost of business.