All Forum Posts by: Alan Nelson

@Glenn N. - Are most of your loans short-term/interest-only, or are they more complex (e.g., longer-term, amortized, require escrow, commonly modified b/c of prepayments, etc.)?  I have found that it is quite simple to self-manage a portfolio of 30-40 short-term/interest-only loans using a combination of QuickBooks and an XL workbook (1 worksheet "tab" for each loan).  My CPA takes care of the 1098s.  

Some DIY lenders use a program called NoteSmith, but IMO, if the loans are too complex to easily manage with simple XL/QuickBooks, I'd be using a 3P servicer.  In the latter case, I would still use QB to enter info provided by the 3P servicer and to maintain my general ledger for the lending business.

 @Tom Gimer - You are correct, and many loan docs provide that an additional encumbrance constitutes an event of default.  However, such a provision doesn't actually prevent that additional/junior lien from attaching to the property, leaving the 1st lien lender stuck with the issues @Chris Seveney mentioned.  The one good thing about such a provision is that it allows the senior lender to start foreclosure (or notice of default/cure period) immediately.      

Agree with @Kerry Noble Jr.  I've been in this situation as well and understand the want to help.  At the end of the day, the purpose/use of the proceeds is for the borrower's personal home (i.e., personal, family, or household purposes), which puts this loan squarely in the consumer loan category.

@Dave Skow and @Caroline Gerardo, why don't HELOC lender like to be in 1st position? (Do they really not get an insured closing with their own lender's title policy?)

Thanks @Doug Smith

@Doug Smith, that is good to know. In terms of underwriting criteria, what kind of cumulative LTV are you seeing for 2nd position?

@Eamon Conheady - was the other lender a company or a private individual?  If a company, it would be great to know of a reputable non-recourse lender.

Chris, thanks for the insight.  It seems that this time around there might be more opportunity for the big funds rather than the smaller investor.  Any guesses on how a smaller player might be able to participate this time around (as the opportunity presents itself)...besides investing in a fund?

Hi Jimmy!  Congrats on your success so far.  As you've probably heard, Indy is a very "block by block" market.  I've worked with Tasheana Hanza (Hanza Realty).  She is an investor herself and I know she works with out-of-state owners.