All Forum Posts by: Todd Pultz

@Joe Splitrock just to be clear, self defense is a justified defense to murder lol. That is a poor comparison. And yes someone can start as the aggressor and still be cleared by self defense standard! But you don’t need a legal lesson from me.

There are many protections for consumers out there across the country. Only a few states have ones this significant though, but I get it after reading the many posts on CA law and research. However, for anyone to compare this guy to a criminal or this situation to a conspiracy is highly ignorant!

But, this thread is filled with assumptions like many threads on bigger pockets. Nobody stopped to ask if the foreclosure action was filed in the court or if he had executed any of the disclosures. They just started beating this guy up who was asking for advice who is obviously not a real estate professional. Nothing in his post lead me to believe he was a predatory person taking advantage of the weak, but that’s because none of us know that by reading his post!

Personally, I would say congrats to the guy for a home run deal and I would hope he followed all applicable laws in his state so he can reap the rewards of a great real estate deal

@Tushar P. I understand your thoughts! However, this thread went off the deep end from a guy asking for advice to several of you comparing him to a criminal and the transaction to a planned conspiracy! I’m beside myself reading your post.

@Nick Robinson not saying our market is in a valley. Currently due to Covid commercial space is hurting bad, these commercial buildings are cheap in many areas! So commercial space such as office buildings are in a valley and that's what we're buying right now for long play since the multifamily space is so competitive. Eventually, we will have a correction and if the housing shortage gap is reduced we will see SFH come back down and hopefully to a valley we can buy in!

Unfortunately I do not believe multifamily is correcting anytime soon and to be successful, grinding off market deals is the best way right now!

Stock market is no diffrent as you have to shift from stocks to equities, to cash holdings and others depending on what we believe the market will do right? I’m sure we agree on a lot.

@Brad Sand CA is a diffrent planet, so I get it. We do not have to deal with these issues out this way!

Think about the statement “ignorance is not a defense” but that is precisely what this law you guys have explained is allowing a homeowner/seller to use as their argument. I mean, we can all agree that’s fairly comical, but the real truth in pockets of our country

@Nick Robinson I appreciate your response. I do not need a lesson on economics lol, I do fairly well with real estate and other investments.

The point to my statement is that the market would have to absolutely tank like one of our depressions to cause an issue coupled with you being stretched too thin with your line. That is also why you place your funds you will use for this method in a Moderate portfolio that’s not super aggressive just in case. Having a stock portfolio is a long play that you have to monitor. But even during the last crash and all others, you will recover as long as you’re not in a position you freak out and have to dump.

I’m not a believer the housing market will bubble and crash nor are other larger real estate investors. Individuals are not over leveraged like they were before and banks are much stricter now. We will have a correction, but we will not have another bubble, just isn’t going to happen! Our housing shortage is too great to think that would happen in the next few years.

Everything is valleys and mountains and you buy in the valleys.

@Jay Hinrichs good info! Always curious! While I have no plans to invest in CA and I’ll stay to the Midwest, I love hearing about the other parts of our country lol.

My real question here though is the private sale not including any real estate professional. This buyer could easily have a defense that he’s not a real estate professional based on his statements so how would know the laws or disclosures required and how would he know the home value if he’s not a real estate professional (besides his comments here lol). Just playing devils advocate

I certainly see how that applies to guys like you and I, but find it a stretch to hold a non real estate professional to it

@Nick Robinson it is not risky at all as long as you don’t over leverage your line.

He stated he was waiting for a market crash. A housing market crash does not mean your stock portfolio will crash too. As long as you do not place them in a super aggressive plan your fine. Even during Covid my accounts drew 12% earnings surprisingly.

And that is not the case on a portfolio loan, you do not have to sell together. Most lender will have trigger points of equity that Allie a property to be individually sold off

@Jay Hinrichs where are the triggers? Is it any foreclosure or is there than equity point that triggers disclosures and such?

And this civil law applies to a private transaction that does involve a realtor or professional real estate investor? Thanks buddy

@Nick Robinson yes exactly! Typically you can loan yourself 60-70% of your principal at around 3-4%. Best part is your principal is never touched so it grows on the full amount.

So on 100k you could loan yourself 60-70k, but the 100k will continue to grow the same.

Obviously you have to be in tune with the market and not get near your cap on the line. If the market crashed and your line of credit went over the 60-70% allowed, you would have to buy it down. That would take a serious issue in the market. Even at the beginning Covid it did not become an issue

@Darius Ogloza I certainly don’t know CA or the laws you refer to, so share a brief bullet point of what you have to do during a private transaction like this? I’m curious where the trigger points are at, so be detailed so I can understand.

Regardless of any laws your referring to this guy should not feel bad at all for getting a great deal on a property! That’s the name of the game.