All Forum Posts by: Loc R.

Alisha,

It sounds like your seller didn't know about the consequences of creating paper with a balloon. Her options, at this point, from easiest to most difficult would be:

1. Modify the loan directly with you. Maybe something along the lines of 10% in principal in exchange for a 1-year balloon extension. That would give you 12 months to find a lender to refi.

2. Sell the note to a paper investor who would extend the amortization.

3. Foreclose.

Sounds like Choice #3 isn't an option, so try discussing 1 and/or 2.

Jim,

Gold at $2500 I can see.

Dow at 5000 I can see.

But what is his rationale for a "major war"? Are we talking 'get your bunkers ready?'

Great question. As Jim stated, balance is the key to everything.

I place the most value on being able to see my friends and family. From there I enjoy my hobbies, which happen to include using money to make money (AKA investing).

I always try to grow my business by 5 to 10% every year. I re-invest whatever it is I need to in order to achieve that.

Just remember, you can't take it with you, so live your life the way you want, and if you were to die tomorrow, you would have no regrets.

First, how did you determine the value?

OWC will result in a bigger pool of potential buyers. However, that doesn't necessarily mean they'll be good buyers.

If you want to get cashed out, you'll either have to wait it out OR you can seller finance, then turn around and sell the paper.

If you do carry, these types of terms will minimize the discount you'll take when you turn around and sell: 7-12 years with full amortization (no balloons), 6-9% interest, and with a minimum of 20% down (more if they intend to use it as a rental). Obviously the higher the credit the better.

As to the default issue, you'll want to think like a (smart) bank with respect to underwriting.

Knowing what I know about paper and the way it is traded/discounted on the secondary market, I would have to say that 3% is almost impossible due to the cost of the money.

So, I will go on the record and say 5% before 3%.

So I just paid a $10,000 tax bill. Here's the background.

In 2010 my wife & I bought a house. We qualified (or so we thought) for the $6500 tax credit.

I was a "long-time homeowner" and thus qualified for the $6500 credit.

My wife was a "first-time home buyer" and qualified for the $8000 credit.

So, we applied for the $6500 credit, since with programs of this nature they will usually knock you down to the lower credit. In addition, we filed for an extension for the 2009 tax year, so we decided to apply the credit to the 2009 year.

Well, it turns out that in order to qualify for the credit, a married couple must be either both long-time homeowners OR both first-time home buyers.

We ended up getting a $10,000 tax bill broken down as such: $6500 for the credit, plus $3600 in penalties and interest.

That's $10,000 I won't be putting into the economy this year...instead it'll go to the geniuses in Washington so they can blow it on some other moronic government program.

As you guys may or may not have read, zillow.com acquired postlets.com.

I love the postlets.com model - a self-sustaining website that generates income.

I hate the zillow.com site - a information site that provides inaccurate information.

I think standard operating procedure in most states/counties is:

(1) 3-day notice to pay or quit, after which you would use
(2) 30-day eviction notice

Jeremy,

Hate to break it to you, maybe Jon Holdman will come in do the numbers, but the #s look pretty bad on this one.

As to best entity, I would say Land Trust with your LLC as the beneficiary. You get the privacy with the Land Trust, and the LLC maximizes your liability protection.

I am doing this in certain situations.