All Forum Posts by: Scott Allan

Hi Rich,
Yes, you are certainly a victim here. I am not sure what you can provide to me that I don't already have. I've got all (5) different escrow agreements, wire transfer receipts to and from JPO to Garber, etc. I also personally know every single one of the guys in Ft. Myers with C & W. I reported them as well.

I've got e-mail exchanges, letters, etc that immediately contradict and incriminate. I am also working with Blue Oak as they gave me all of their communications with Bill Lange, so I am sure I have your file somewhere with the US Attorney's Office.

I have made it clear to Lange and Garber that making sure they go to jail will be a fulltime job for me for a while. Not a single investor was funded, you are right and not a single investor got their money back UNLESS JPO Title hasn't transferred the money already. Slim to none on that anyway.

Personally I have lost a lot of money on land deposits and unfortunately so will my investors. I have not heard of anyone down here selling foreclosures through Bill Lange though and I have not heard of any new seminars locally. As you said, Lange shut his offices down last week and C & W fired everyone on Friday of last week as well.

At this point I think I have the invesigation covered for everyone. The US DOJ will report them to the SEC and hopefully strip Garber of all Bar licensing. I am certain Garber sent the money to Lange...I tracked Garber down at his own house to confirm that. Garber's funds were frozen of $1.5 million when there should have been over $40 million in the account.

My question is, does Lange still have it or is it gone to stock market trading?

Hi Teri,
Part of my business is wholesaling and it works very well...It is imperative to find a niche and stick to it and not spread youself too thin. For example, 99% of my wholesale business is going to the court auctions and buying Florida REO's and foreclosures that I think are great deals. My research is looking at the MLS and making sure I can sell to investors at about 15% less than what is available on the system. That includes my fee.

Right now I am getting homes for about $50-$60k and selling for 10% higher than what I buy them for. I try to line up an investor before I even buy them though so my cash outlay time is short. That said, yes, in my niche I use cash and also have an investor that helps. If there is an investor, I offer them half of what I make or increase my margin on the flip.

Auctions will not provide a route to assign though. There are not many assignment availabilities today but they are not impossible.

Good luck bud

However going this roung

My opinion is to look at it...If you think it has a chance of being a goodie, lock it up with a 10 day inspection period. Some sellers may give 5 days so you need to honor that and move your tail to get your DD done. You also have to put yourself in their shoes.

That said, I am sure sellers will make their property "active contingent" meaning during your inspection period they can take backup offers.

I just contracted an apartment complex and the seller gave me 3 business days but I got 3 free days since one day is today, Memorial Day, so essentially I got 6 days! I know how to do a good level of DD so that was plenty for me.

Just don't waste the seller's time or word will travel fast.

MM, You are not alone. Millions upon millions of americans are in this same predicament. Ultimately people have different moral views, but I look at it as a business decision. For instance, if my house went down 50% in value and there were no way I felt I could ever get SOME money out of the deal, why delay the inevitable. I would rather pay half that amount in rent and save my money to help support the future of my family.

Home ownership will come again when the time is right. Landlords today are more willing to overlook these. If they pull a credit report, the main thing a landlord will look for are eviction reports, and all other bills. If you are current on bills and don't have any eviction report, then chances are they are willing to rent to you.

That said, you have to make the "business decision" on what is right for your future. Some people will go either way with an opinion but I feel that this is where the business part of the decision comes into play. Hope that wasn't confusing.

MikeOh,
To say the least I am not happy. The updates I am getting leads me to believe that Harbour Funding now comprehends in their stupid minds that there is heat on them and this may be the last time they do something like this.

The DOJ and FBI love cases like this and can happily say they are utilizing all resources to take them down. I want to be there to spit at them as they are walking into the federal court

If anyone has any questions or wants to discuss Harbour Funding Group, please PM me or contact me directly. I have requested a criminal investigation into Harbor Funding and have the U.S Justice Department and FBI involved.

D F: It's tought to say right now what is available for Canadian investors. I did, however speak to a lender the other day that would entertain a 50% Loan to Value on a purchase.

Also, as far as purchasing REO's I have a lot of experience in them and here is what I can recommend from my purchases. Most of the better REO's are those that are listed by realtors. This means they have already been to the auction and did not get taken. Once a bank lists with a realtor, they are somewhat desparate to sell.

I work with an asset management company out of Florida and we have been buying foreclosures from 55k to 75k on homes built within the last 5 years.

My strategy is to buy and hold and my goal is to buy 2 homes per year over the next 10 years. I have already bought 5 of them and rent them for $800 per house. I get a small, but positive cash flow on 3 of them, and the other 2 I have 15 year mortgages on them and lose the positive cash that I have on the other 3 by paying the balance on the 2. I don't care about today's cash flow, I care about the future payoff in 10 years and speculated equity I will have at that point.

Patrick,
You say you have no money for a down payment. Do you have a job that will allow you to pay for the monthly debt on a potential home? Yes, home prices are low right now, but could potentially get much lower in some areas in 2009. That's great that you have motivation to do something but speak to your banker or loan officer and find out what you can afford. Good luck

I have a home in Ft. Myers, lived there for 6 years, and now back in NJ taking over my old business plan. I'd like to add something about Florida:

I will use Cape Coral / Ft. Myers area as an example. The median price dropped from its peak in the $250k range down to $105,000 recently. You can buy homes for literally 60-70k, and nicer newer homes away from the beaches and "central spots" but if all you care about is long term, that is not a bad buy.

Could those prices further decline? Maybe, maybe not. Over 600 homes sold in November, showing a pick up in homesales. More foreclosures are expected in 2009. But at the pace of homes being bought will that balance out another huge decline in prices. I doubt prices come down another 35%, but I don't think 15% is unrealistic. On the flip side, I also can't guarantee you that we ARE NOT at bottom.

Bottom line..If you are in it for the long haul (decade or more) I can live with buying now and possibly risking a 15% decline of the median. Rental rates are about $950 for single family homes, so I can get positive cash flow and hope that the market in paradise turns around in a decade

@Richard: Go Zone is available to NON real estate professionals as well. There are over 1,000 (exaggeration) amended reasons, the most obvious are "passive income" investors. Can include income from real estate, rentals, software company, etc....I would speak to a QUALIFIED go zone accountant in Mississippi before saying that most will not qualify. I have sold quite a bit of go zone and yes, some don't qualify which I would hope would be confirmed prior to contracting. Most applicants did qualify under the income level criteria.

Connie: You were pitched private money financing. You are from Texas (domestic investor) and to enjoy the maximum benefit of Go Zone you should go with conventional financing. Don't buy into the "guaranteed tenant". No such thing unless they are doing a guaranteed leaseback which I wouldn't do. If the investment is such a great deal, why guarantee a leaseback by inflating the price and giving me some cash back at completion?

Right now the best rental property in the area, to me, is duplex. 20% down on average prices in the area will return you a few hundred dollars per month in cash flow.....Normally