All Forum Posts by: Account Closed

Cheap property can often be bought for cash and then the income can be rewarding even in a declining market. Again be sure you do your homework. 30%-50% off means that its worth typically in that specific market 30%-50% lower than recent top of the market sales prices and that the market is likely declining and the discounted % properties are setting a new price level in the area especially if there are many of them or a high number of foreclosures occurring. Buy the best you can get at the lowest price you can negotiate...this is always true in any market. Think about it...why would a seller take 30%-50% less than market? Only if desperate, and yes that does happen but current market decline affects all property in the area where significant declines are happening no matter what the so called % below market is being promoted.

Ps I would not risk the quit claim route as lenders will call the loan if the transfer is not previously approved. Quitclaim also does not absolve one from the loan obligation to the lender in most cases. If you plan to do such a quitclaim or deed to your LLC then let the lender know and get their approval to prevent acceleration of the loan.

My experience has been that the lender will make the loan to the LLC with you personally also on the note. They prefer you personally on the note.
meanwhile their are lenders, especially hard money lenders, such as my company (typically more expensive loans) that are open to making loans to the individual or the LLC but still prefer both. This is especially true if the LLC has no credit history. Hard money is usually a max of 60-75% of LTV. There is a member on here who is indicating they have 100% financing on commercial loans, pehaps they will make a loan to an LLC.

Look at your maximum risk and how much you are willing to put into this before you get in too far. If risk is low keep moving forward..you will learn a great deal by just doing it that willl help on the next one and so-on

Get ou and get out ASAP. Money has a time value and the more you take as a los over time the harder it will be to recoup. Looks like you may already be upside down on the LA property. Sell Sell Sell

FYI California has no deficiency when a typical non-judicial foreclosure takes place, while other states do have some deficiency recourse against the borrower. In California it is sometimes found that a property buyer agreed to sign on a loan for personaal liability besides using the property as security. In those rare cases there can be a deficiency and in some judicial foreclosures too. For the most part the property is the only security or asset the lender can recover against. In a down market that often means the lender may take a short sale rather than pursue the costs of a foreclosure.

and then there are companies like mine who buy the financing notes carried back by sellers which can provide them more cash from their sale. BTW Sellers would be foolish to give you a deed with no money down. No money down deals are very rare and typically require additional property for security or some other arrangement that secures a seller's interest in the property being sold or secured by some other method. Think about it. Why would a seller give up a property of any value and risk losing it all by selling it with zero down to a buyer who would have absolutley nothing to lose. Nearly all real estate deals require some cash if not for down payments for transaction costs and carrying costs. Money is what greases the squeeky parts of a real estate deal to make them flow properly. Once in a while someone does make a no cash required deal but you could spend years trying to find one that works for the parties involved. I have been buying and investing in real estate since 1962 and have yet to see a no-cash deal that made any real sense.

This may be new to HUD but is now very common on most lender REOs. They are attempting to perform "Loss Mitigation" to maximize their dollars to reduce losses. We have made 5 offers on REOs and the ones accepted were immediately re-listed at the higher prices we had accepted with the REO sellers having the right to drop our contracts and accept any other higher or better offer up to the time of our escrow closing...so we can't count on closing our deal until it actually records. Using our offers to leverage for higher sales prices...

:D Hi lets first get some clarification
A Wrap mortgage or loan typically "wraps around" one or more mortgages on one property as follows. Sale price $500K. Existing First loan balance of $300K. Seller accepts $100K down leaving a balance between the existing loans and sale price of $100K ($500K-$300K existing balance-$100KDown=$100K to finance. Can be "wrapped with a new second loan of $400K that incorporates the existing loan of $300K. Result $500K sale-$100K down and $400K new wrap loan.
A cross collaterlized loan is also known as a "blanket" loan as it blankets more that one property to provide additional security as when thevalue of one property is not sufficient to secure the loan. In my many years of real estate experience (since 1962) I have not heard of a wrap loan referred to as a cross collateral loan or blanket loan. It could be made into one with additional property for security purposes but is not the norm. Hope that helps. Yes a Wrap can be used on most any property provided (WARNING) one does not trigger an acceleration of an underlying wrapped loan.