All Forum Posts by: Sherry Norman

Daria--Patch of Land doesn't lend in NJ.  The rep told me that our foreclosure process takes too long in this state,

I'm in negotiations with a bank to buy a multi-family REO property in NJ. If we reach an agreement on the price, I will be seeking a partner who is able to fund the deal in return for interest and equity. Let's be honest here, and I hope I'm not offending anyone, but I encounter a lot of newbies, scammers and BS artists in the RE investment arena. (You know it's true.)

So how should I check out anyone responding to my ad or post looking to partner with me?  I'm trying to avoid the time wasters and wannabes who aren't going to be able to come up with the funding but somehow are hoping they will get the funds together somehow.  Meantime, I could end up losing my deposit due to not being able to close on time.

Suggestions?

Brie--

It would be much appreciated and might help others if you let us know which ones did or didn't work well.  It sounds like you're a busy person, but a little follow-up shouldn't take too long.

Thanks.

And oh yeah, if you can swing it an after pic might be nice.

As you've probably guessed, legal expenses (investigation and litigation) can get pretty high, esp. if there are a lot of potential heirs, so yes, sometimes it becomes cheaper to offer a settlement to a party who has the willingness and resources to actively oppose the suit.  As far as evidence, at this point, you're probably not privy to whatever kind of evidence these heirs might have in opposition to what the seller says.  The fact that the other heirs seem to have not broached the issue yet could just mean that they weren't aware that the decedent owned this land.

Just be aware that the quiet title action itself will require "waking the sleeping bear" because all parties who would have been potentially affected by the deathbed transfer would normally have to be named and receive notice of the lawsuit.

Good lead @Matthew Kreitzer.  You make a good point about a national firm.  Thanks.

Hi BP Members!  

I am looking for referrals to attorneys who can help out with some legals questions on commissions for things like referrals.  In most (maybe all?) states, one has to be a licensed broker to take any fees, commissions, or payments for real estate related services.  

But I want to speak to a lawyer about the definitions of these laws and just how far they extend.  I have a friend starting a business that will be nationwide and she needs some clarity on these matters.  

She is looking for a real expert, as well as someone that could give her advice on the nationwide aspect of receiving payments for real estate related services.  Tips or leads to lawyers are appreciated.  

Does anybody know of a HML or private lender in NJ which charges better rates overall? Lendinghome offers good rate structure but does not lend in the state of NJ.

Sherri---As I mentioned in my post, there were some factors we just didn't have control over due to money partner owning more than 50%.  B/C of that, project took about 3X as long as it should have, costing thousands more than it should have in carrying costs, interest, etc.  If I had my druthers, wouldn't have him as partner.  Also, he has a habit of telling subs that he doesn't care whether or not they pull permits!  Naturally, after hearing that, they don't pull them (why would they incur more expense and necessitate their work passing pesky inspections if he tells them they don't have to?)  Well, I do care.  Even though we're not in a city (no C of H required on sales), it seems that the home inspectors and attys that our buyers hire tell them to check with the twp. that permits were pulled for the work.  So far we've been lucky that the bldg. officials haven't fined us or made us tear out work, allowing us to pull permits after the fact.  But I don't want to push things to the point where the bldg. dept. decides enough is enough.  Alas, as of now this ( i.e., money partner and his foolishness) seems to be part of the price we pay for access to money.

Steve---Money partner's accountant hasn't done final accounting yet, and some of it depends on how much carrying costs, interest, RE commission, etc. add up to.  I'm hoping around $70k profit will be after all that.  Ironic that he can hit me with inflated costs for those items when he's at fault for pushing them up.

This flip is in northern NJ, middle class area in suburb, cape w/4 bdrms. and one bath.

Purchase price (short sale, buried oil tank)   $112k

Rehab $50k (paint, refinish HW floors throughout, new fixtures and tile in existing bath, add bath {no tub, just shower} in bsmt., remodel kit,  remove non-leaking oil tank and add CAC)

Listed for $274,900, sold in a week for $269,900 (still thinking we should have negotiated harder for full price)

It took WAY longer than it should have, almost a year from our offer to the bank until the close on the new buyer's transaction.  This was mostly due to our money partner, who has other unrelated business interests that he periodically travels abroad to attend to, leaving the project frozen in place for his return.  He is a real micromanager, insisting on the final ok even for smaller details like light fixtures and tile.  Since his share is more than half he gets to call the shots.  So carrying costs, etc. will be higher than they should be.

Overall, profit should be somewhere around $70k.