All Forum Posts by: Ty Kirkpatrick

We are looking for a hard money lender who will lend in New Mexico.  Anyone have any good leads for lending in this area.

We have a performing Note and Deed of Trust for sale.  It has a face value of $142,000 and it has monthly payments of $600.00 per month with no balloon.  The annual interest rate is 4% annualized.

Douglas,

Thank you sir.

Dear Joel,

I agree with you about the importance of obtaining a payoff on the property.  Due to the fact my offers are very creative.  I often go to or contact the recorders office and pull the records for the property prior to making an offer.  I will pull a copy of the deed when the Seller purchased the property, a copy of any and all mortgages and deeds of trust, and any pending legal issues.  I will also go to or contact the local tax assessor and obtain a copy of the tax records for the property.  I like to be armed with all this prior to even making an offer in writing.  I do this to prevent a Seller from feeling embarrassed about his or her situation.  That situation being good, bad, or indifferent.  I like to know if the Seller could accept my offer if it is acceptable.

I can not count how many times Seller's have been mistaken about their payoffs.  That is why I have instituted the above listed process.  I have also found Seller's are or can be reluctant to provide an authorization letter for their loans.  Due to the fact some lending institutions require the Seller's social security number and date of birth.  What works well is presenting the Seller with an authorization letter and having them populate it and send it to their lending institution.

My advice or suggestions shall not be construed as legal advice either

Dear David,

I commend you for addressing your concern.  It is nice to see when someone invests that they do not have their "deal blinders" on.  It is a valid concern that you have an it needs to be fully addressed.  Not only must it be addressed but it also must be verified through a means of Seller cooperation.  In order to answer this question a couple of things need to be clarified.  Banks "are not gods" and they can not take rights which were not granted to them.  Is the loan secured by a Deed of Trust or mortgage?  The Seller could have an issue with the bank attempting to capitalize on the sale.

The Seller has the obligation to payoff at closing the loan including but not limited to the principal, interest, penalties, and legal fees associated with the lien secured by the property.  The Lender has the obligation to accept this payment to release their interest in your Seller's property.  They are not obligated to release their interest unless the loan is paid in full (principal, interest, penalties, and legal fees).  It would be my recommendation to obtain a copy of the lien from the recorders office.  Then see if the Seller granted the Lender security of an additional property.  Then I ask your Seller to obtain copies of the liens secured by other properties.  This will show you if the Seller granted the Lender "Bank" additional collateral to the other loans.  Let me know if you need additional help

Honest and Straight is the easiest way to peace.

Dear Jeremy,

This is a very exciting experience.  Tax auctions provide a very appealing opportunity for any investor.  Remember with every opportunity comes a certain amount of risk.  Depending on the state you need to find out how you recover the property.  The lien being turned into the property has its own risks.  My suggestion is acquire a lien where the property has the least risk if everything goes wrong.  Treat each deal as the worst case scenario and pay cash for the lien.  Then when you get the property refinance it and take that cash and make another deal.

Our company deals with asset protection and management.  Your question falls into realm of legal advice.  I am not an attorney but I could assist in steering you in the right direction.  It is not something for a novice.  Remember partnership agreements you have to live with until you dissolve the partnership.  Please call to discuss (530) 338-6506

I have not posted on here for sometime.  $30,000.00 is nothing to sneeze at and you should be very careful how you invest.  It would be my recommendation for your to buy something which has a little less risk than a rehab to start with.  I would take the $30,000.00 and purchase a performing note and deed of trust or even a defaulted piece of paper.  This means you know the property already has a value for you not to lose.  Plus performing paper is going to show a monthly yield.  Just a thought...

Most sellers like to receive a rate of return greater than 4.5%.  Especially considering the Seller may desire to sale the paper in the future.  The value of the paper will be predicated upon several factors.

Most note buyers look for discounts based upon the fact the Seller has received a certain amount of payments, the Borrower put sufficient down, and the value of the note is in line with the real value of the property minus any equity over the note value.  Most investors like to see a yield of at least 10-15% annually for their investment.

Howard,

Please get in touch with me. I have something to discuss with you.