All Forum Posts by: Christopher Winkler

@Don Hines , no, I didn't mean to say owner occupied, I meant to say Residential. 

@Christopher Winkler , the reason is that the laws have significantly changed for lending since the advent of the SAFE Act.  @Jason Gorenchan is correct.  

This is the reason we are so adamant about recommending to potential lenders to use an attorney well versed in private lending.  The laws vary state to state to some degree, and attorneys representing lots of hard money lenders have done more research on these state nuances than a typical real estate attorney.    

"Transfer price" for $10 doesn't mean you can buy it for $10, it means nothing.  It means....at the auction, the bank announced some minimum bid necessary for them to let it go, say $80k.  No one bid this, so the bank got it back for an opening bid of $10.  It used to be entertaining to watch people come to the foreclosure auctions, when they were live, thinking they could buy a house for $200, since they saw all these $100 prices the bank took the properties back for.

Hi @Don Hines 

Another new approach you may look into is being a lender on one or more of the Real Estate crowdfunding portals. Here is the link to the forum dedicated to the topic http://www.biggerpockets.com/forums/520-crowdfundi...

These companies do all of the legal work for you and you can achieve greater diversity by spreading your investment dollars over more loans (most sites offer minimum investment amounts of $5,000). Most also take SDIRA investments as well. 

Further, most handle the management of the investment, meaning if something goes sideways they oversee foreclosure or other means to liquidate. 

There are of course trade offs such as your returns may be lower as the portal takes their slice of the action. You may also have less contact with the borrower and forfeit some control on what decisions are made when a foreclosure is called for. 

That said, it is a turn-key solution to get into the game, especially if you already know how to spot a good deal. 

Feel free to give me a call if you'd like to discuss further...been studying the space for some time now.

Best,

Matt

Availability of NPN 2nds over next 3-5 years is a factor because I can't compete with Oak Hill and buy $659 million from Freddie Mac at .76 UBP or Lone Star Funds-John Grayken, paid almost 66 cents per dollar of unpaid balance at the June HUD auction, winning bids on all 16 loan pools of NPN 1st's.