All Forum Posts by: Steve Morris

Apparently seller's escrow company requested the demand letter for payoff over a week ago and they "usually get it in 24-48 hours".

Think someone at title may have screwed up.  I closed a deal last month and getting payoff not a problem even though she had to ask 3 times due to date slips.

For COVID, need to submit the letter sooner and call more often.  Finding out at this late stage is pretty sad.

"Would I need to have other assets to qualify for the loan or is the lien usually enough?"

Depends on the lender.  Again, I wouldn't tie anything besides the one property.  Stuff goes south and you could have all the collateral tied up.

"Anyway, I am interested in this topic and was wondering if anyone had any recommendations on books/topics in this area. "

Haven't taken the program, but have sold land to developers.   They can tell you want they want in a package (density, allowed use, walkscore, etc.)

Biggest issue is getting govt go-ahead on a project.  They could tie the property up for a year waiting for that.

"Facebook is building a new Data Center"

I wouldn't let that hold too much weight.  If its a server farm, in OR, we have lots since power is cheap.  Then they usually get the local yokels to give them a big prop tax break.

Then they find out its about 10 jobs.

"I have a house that has lead paint peeling off in the exterior"

Well unless they haven't repainted it since 1972 (I think that's the year), it's been encapsulated.  Usually, if you know for certain, you just disclose it unless you want to strip the house (which if it's peeling you should do).  However, then you get an issue of waste disposal.

Could be worse - Could have popcorn ceilings with asbestos.

"This policy allows us to conduct a brief title search versus a full 30 year search, which would take a much longer time to complete."

The atty was asking for a title to ostensively see if any clouds on title or restrictions.  Once you get the title, find the escrow that is the trustee and ask them for a copy of whatever title insurance policy and exceptions were issued.

It'd also list the lender and, as servicer, would have the payoff.

"Would the property I'm investing in be considered the collateral?"

I'd guess they'd put a lien against the prop for the amount of the loan at a min.  Your friend may end up in second position, so think hard about this.

Pull the current deed.  If it's a trustee state (i.e. Trust Deed), then that's easy.

Maybe you could get a RE atty instead?

"I was wondering how you guys calculated ROI? "

However you do it, keep it consistent so you can compare properties.  Like using actual income & expense and NOT broker ProForma which can mean anything.

Otherwise, ROI = CFBT/Down

CFBT = NOI - debt service = Income - Expenses - Debt Service

Down = Down + all closing costs.  It's your out-of-pocket money.

The number should change (like getting better over time). Once you get this then you can calc out IRR.

Pull title and see who the owners are. If it's a trust, then that'll give you some direction. If a LLC, then they should have an agent.