All Forum Posts by: Scott R.

SOO in my search for an attorney..i found one. One who doesnt practice law with clients but rather is a practicing RE Broker with shortsales. Turns out its WAY more complicated than most the investors are doing it and IF this law still stands which i just read (dont know if its any different words than in 2006 though) then the shortsale world will crumble in a heartbeat and people will be going to jail! There are ways to do it i guess because these attorneys do them but i guess its hell. Here is the article she sent and said "it is very well written" and i also attached the california civil code so you can hand it to your own attorneys who can figure it out but PLEASE make sure you inform everyone what you heard about from your attorney so others can get their investments going legally!

Articel from attorney on shortsales in CA
http://ezinearticles.com/?California-Home-Equity-Sales-Contract-Act---A-Mine-Field-for-the-Unprepared!&id=1095260

California civil code
http://www.leginfo.ca.gov/cgi-bin/waisgate?WAISdocID=28407621739+0+0+0&WAISaction=retrieve

I didnt read the story yet cause i just found out its nearly impossible to make a shortsale in CA and found the laws im gonna post to see if anyone doing these can give this to their attorney.

But as stated before, it would be fraud if they sold it for more than was owed. This is on fannie mae and freddie macs web page. Also if they offered more than what something was listed for and got cash back at closing. these are inflated sales prices and would eventually be used by appraisers to do other properties as comps.

i have a document on this from there maybe i can find it online....

cash out buyer
https://www.efanniemae.com/utility/legal/pdf/fraudnews/mortgagefraudnews0709.pdf

Property flipping
http://www.freddiemac.com/singlefamily/preventfraud/flipping.html

So ive talked to a ton of title companies and seems they all think of simotaneous close and double close different. Double close here and title companies run.

i had ONE lady say she can do it and use the end buyers cash then give him a credit back to close their deal BUT she doesnt work with REO's ( but i can have them email me the docs and she will i think) and before she will close the second deal they wait 48 hrs. So no transactional funding with them.

Found a company out of state called Old School Title. They only deal with shortsales and foreclosures and said you MUST put something in your contract telling the bank you are re-seling the property very quickly for a profit or else its fraud. Also using the end buyers cash is fraud.

I have some documents i cant post on here i guess but are from fannie mae and freddie mac. I just sent them to steph so maybe she can reply here and tell you what she got out of it. Jon or anyone else who wants what the sent me just email me. Maybe we can clear stuff up with these legal documents and keep everyone doing things right.

What about land trusts? One guy put info on it but he hasnt answered as detailed as you with the ===> stuff and simplified it. Any walk through on this?

Depends on the Banks and areas. I put in an offer with $1000 but i have heard of bans doing that. I would just say to the agent your only doing $1,000 because you are looking at some other deals to and dont want a bunch of money tied if something is to go wrong during the inspection period incase you need to close on another property. Thats my thoughts i dont know.

ok so i talked to a title company today and she said just dont call it a double closing here in Cali because people run from it. You can do a Simo-close and some will do a back to back but wait 48 hrs before the second close so its hard on some transactional funding places because they want it instant.

she said you can have your end buyer pay the $175k because its a shortsale and they get tricky even though its assignable. We would have the end buyer fund on a note the 175k to purchase the property and already have the second contract worked out at say 197k. the remainding 22k would be in the other escrow. So when the first one closes either into your name, llc, or land trust, then you would let the end buyer have a 175k credit or however much toward the property, and the other 22k will be dispersed to your 3 wholesalers.

something like this. does this sound right to anyone as far as everyone getting paid?

she also mentioned the short term capital gains but they said you can itemize it with the closing costs and all that and pay like 9% or something? Confused on that.

lol where the heck is anthony!? im trying to get ahold of these stupid lawyers so they can help me with the land trust questions and how to do it and none of them answer their phones or call you back! I dont know how they work and have seen one online but couldnt understand a word!

my main issue is i think you said you put the offer in with the land trust name, once accepted assign the benificial intrest of it to the end buyer. I read somewhere or something of some guy doing this too but he put the offer in with his name, assigned the landtrust, HE(guy who put in the offer) went to closing to sign the documents since he put in the offer. confused now lol any help guys. i seriously want to do this tomorrow!!!

Wow, that wasn't rude or anything. It's to bad we have people like this to surround us. Love the encouragement.

I did do one deal and I ended up having to move into it because my room mate died. Im working on the others now.

It doesnt mean you didnt learn anything. So your saying all advice on this forum is bogus because its just "Information" and until you personally put it to use and it "Works" then you didnt learn anything except practicing your reading skills? So i guess we should all just leave the site because its a bunch of garbage?

Or maybe its because "Investors so good as yourself" are selfish jerks who shouldn't be investors and leave people looking for help to search for a company to help us because "YOU" wont spread the information to help someone in need seeking the same thing you are.

Or maybe you are such a Genious because in your profile it says you have completed " 2 "deals..... and you have been working for your parents on properties since you were a kid and FINALLY decided to take the plunge so your jelous that im half the age you are when i started... Could be. All i know, is its people like this that dont deserve to be in this country.

By the way, your post should be deleted because the person who started the post was asking for "reviews/comments" which i gave and you "tried" to smash.

the problem with the LLC in california is the stupid $800 automatic tax due by dec 31! even if u open it in october! then by april 15 of the next year you better have your next $800 in! Its such a pain! I learned this yesterday from the Franchise Tax Board because they dont send you out any info on what you owe. I went through legal zoon and they dont bother to expain when its dues!

COuldnt end with that! Here are some responses. im a student right now and i have learned so much! I love thier help line. I went thrugh robert kiyosakis coaching before and his coach sucked! and the help line was horrible!

http://www.biggerpockets.com/topics/36358-james-smith-the-coaching-company?forum_id=92&page=1#posts-189172