All Forum Posts by: Heath S.

@Jay Hinrichs 

I have spoken to a couple investors that told me that if I purchase the second at auction, I am not guaranteed to be able to pay off the 1st lien and take ownership.  I am hearing that if the 1st is current, or if the lender decides they just want to let the 1st lien go to auction that they can wipe out the second that I purchased.  

I am going to consult a lawyer before making any decisions, but do you have any insight?

@Sean Kruger 

Smartway Electric - 602-708-6689

Speak with Angel or Victor.  I have used them many times, they do a great job.

@Jay Hinrichs 

Sorry if that was confusing.

The current HM lender has the 1st and 2nd on the property.  Their 2nd is foreclosing.  They are going to provide me with financing to purchase the 2nd at auction, and then refinance the 1st into my name. (or just give me one large loan to cover the total of the 1st and 2nd, I have not gotten that far with the logistics of the deal yet, but I imagine that I will end up with one loan.)

I guess I am just a little leery because I am getting my information from one source (the HML) and they have a large incentive for me to buy the 2nd.

Any Idea why they wouldn't want to just foreclose and then sell the place themselves?  I mean, if I am willing to buy because I see value, why wouldn't they want to do the same?  

Google hard money lenders and call a bunch of them to see if they will finance you.  Do you have any cash to put down?

You could also go to friends/family and see if they are interested in partnering up with you.

@Leon Stevens You won't be able to get a business line of credit with any of the traditional banks unless you can show a couple years of tax returns and some income for the business.

If you have good personal credit, you may be able to get a personal loan from your bank or just use credit cards as a way to start out financing the business until you have some history.  

Hard money lenders would be another route to go if you are looking to finance property renovations.

Thanks @Jay Hinrichs I have already sat down with the lender...they are the ones that will provide the financing for me.  I just want to cover my bases because I can't 100% trust all the info coming from a bank that has a lot to gain from me buying the 2nd and then paying off the first.  

Can you clarify the IRS sunset info and lien info?

Thanks for the info.  @Wayne Brooks the first lien is with the same lender (a hard money lender) so they should be able to give me a firm number on the first I just want to make sure that I am covered on any IRS or Contractor liens that may pop up after I buy the property.

I am looking at purchasing a home at a trustee sale in Maricopa County Arizona.  I am hoping to get some advice on how to proceed.  This will be my first time and I know there are a lot of pitfalls.  My target is a particular property that has 2 loans.  The 2nd is foreclosing, so I would be buying the property and from reading other posts it looks like I will need to pay off the first lien and any other senior liens to the one that I am buying at the auction.  What is the safest way to make sure that there are no other liens?  Do I just have title pull a policy the day before the auction?  Will they give title insurance to insure against anything that doesnt show up?  Thanks in advance for any info!

Thanks Katie

Hi,

I was hoping for some insight into structuring a deal for a fix an flip.  The total cost to acquire and rehab the property will be about 250K.  I have an investor willing to put up 125K and I am looking to put up the other half.  I found the property and I will be managing the rehab, the investor will only be a money partner.  

I would think that a 50/50 split with 50% going to capital partners and 50% going to the party that does the work makes sense.  So in this scenario I am planning on structuring it where I will get 75% of the profit and the investor will get 25% (50% of the 50% that goes to capital partners).  Does this seem to be a fair way to handle it?