All Forum Posts by: Andy Mirza

I'd love to hear a reply to this thread as well. The answer might apply to doing a JV for a regular fix and flip. Sometimes a house is beyond my current ability to take on or the seller wants more than I can offer him or her in a cash deal. Is there a way to JV with the seller, put up the money for and manage the rehab, and share the profits without having to put up the capital for the purchase?

@Jose Diaz Forgive my ignorance but is what you're talking about the same as hypnotherapy or hypnosis? Can I achieve benefits just by reading some books or do I need to do more? I noticed that some books mentioned doing exercises. Does this refer to mental exercises to reprogram your way of thinking.

That's two people that mentioned Richard Bandler. I'll have to check it out.

Thanks!

I've heard of Neuro Linguistic Programming (NLP) before but I don't know much about it. I believe that it's about using different techniques for changing your mindset and helping you be more persuasive in dealing with others. Does anyone have experience with this? It seems like it would be especially helpful in getting over the fears of failure in investing and in persuading realtors, contractors, and sellers. Any recommendations for books or websites?

@Account Closed Sorry about the late response. I didn't see your reply until just now. :)

I think you're right. We're just going to wait until the lender gets back to us. If it's a problem, we'll just exclude the condo from the refi and worry about the title problems down the road when we sell.

Yes, my partner's money is uninsured in 3rd position. I am partners with his pension fund in our LLC, in which I am the 51% owner. His pension fund owns the rest and provided all the money to purchase our portfolio. He loves condos and knew everything about the deal upfront and decided it was worth the risk. I wouldn't expect your typical private money lender to invest on something like that.

Thanks for your input!

I know an escrow officer who said she spent months trying to get a payoff quote from a lender on a transaction where the seller was not the original borrower. She finally got through to someone at the bank that understood what she was trying to do and helped her out. After that, she found the easiest way to get a payoff quote from a larger institution was to call their automated system where you just need the loan number and the last 4 digits of the original borrower's social security number. No need to deal with a person who isn't allowed to or just isn't able to think outside of their box.

@Account Closed you seem very knowledgeable about CA civil codes and what you said about DOT's lasting forever made me think of my own situation. I'd appreciate your opinion.

I'm refinancing my condo portfolio and one in particular has a couple of old loans that were never released. I'm wondering if it makes sense to clear these out so I can refinance the condo or if I should exclude the condo from the refi and "let sleeping dogs lie" since this is a long term rental.

In the summer of 2012, I purchased a condo at HOA lien sale for $11k. At the time, the market value was around $35k. Before I bought it, I checked with my title company and they told me that there were two unreleased loans: one for $38,500 from 1983 and one for $2000 from 1985. I made the assumption that those debts had probably been paid already but were not properly reconveyed. Regardless, there was no evidence of any NOD's or NTS's from either of these loans.

The $38,500 loan had a dozen assignments over the years and I finally found out that the last bank, B of A, discharged a principal amount of about $8k as a bad debt in about 2009. (We found out that the previous owner died around that time.)

Today, the market value is $50k but we've encumbered the condo with a $20k DOT from my business partner.

So, in order to refi the condo, we'd have to clear those old loans off title, correct? Or do we just wait for the underwriter to get back to us to see if they'll do it anyhow? I'm afraid of stirring up unnecessary trouble. Eventually I will sell the condo but I figure that the worst thing I might have to do is get a bonding company to take care of the loan issues so that a title company would issue clear title.

Thank you...

@Account Closed Would you mind sharing how you're getting these "HOA leads" that you mentioned above? It sounds like you focus on just a few HOA's so maybe you're getting to know different players that give you leads from time to time...but I don't want to assume anything :)

@Account Closed I think you're right in that it would be easier to do this with a smaller HOA or management company. Things are usually easier when you're dealing with the decision makers instead of the gate keepers.

I wonder if those attorneys would respond to an offer of a finder's fee of a few hundred bucks if you could buy an HOA foreclosed condo. In cases where there was some kind of problem such as a rehab that was more than the HOA wanted to handle or a sticky owner/tenant/occupant situation where they didn't want to evict, I could see where investors like us could provide a solution.

I think the trick is to market to directly to the decision makers (HOA boards) or the gate keepers that could positively influence the decision makers (attorneys, trustees, HOA management) but I'm trying to figure out what would be the best way.

@Tim Hogg As long as you have enough spread in the deal to cover your hard money loan costs you should be fine. In my market, I run my numbers with the anticipation that I'll have to pay 2 points and have 6 months of 12% interest only payments. That equates to 8% of purchase price (not ARV). If I can get the loan for less or turn the property around more quickly then I will end up with less hard money costs so that I have a bigger pad to cover other expenses.

I started out using a combination of "family and friends" money and hard money to get deals done. At the beginning, once you have a deal in contract, it becomes a scramble to scrape up the funds from wherever you can get them. It's part of the learning curve but I expect that it'll be easier and easier to raise funds the more experience you have and, ironically, the less you really need them.

@Account Closed I love NPN's as well and we co-own 4 NPN's with a full time note investor.

I posted this on the other thread about HOA liens and I'd be interested in your response:

"Every HOA seems to treat their properties acquired through HOA lien foreclosure differently. Some rent them out while others do nothing with them and wait until the bank forecloses.

Given the latter response, I've approached the HOA management company in the community I live in with the idea of trying to buy any HOA foreclosed property from them that was a problem. They were pretty ignorant of possible solutions to HOA acquired property and appreciative to hear about other options that were available to them. Since HOA's tend to move slow, I'm still waiting to get an answer but I'm hopeful about the idea of approaching other HOA's about this.

Has anyone tried something like this? Have any of you tried to buy directly from the HOA when it made sense equity wise or cash flow wise? Did you have any success?"