All Forum Posts by: Ann Bellamy

I would keep all originals and send only copies to the title company and the end buyer. Scanned copies and electronic faxes are the norm these days, and you should be able to send everything electronically to who ever needs it.

The title insurers are requiring wet funds for simultaneous closings. I would bet that in the case of dry closings, the title company is not disclosing to the insurer that it is a dry closing.

Since we fund a lot of flips, I see it all the time. The seller lets me know (almost always at the 11th hour) that the closing is delayed for a second appraisal.

Matt, you don't get sued for not using a state contract. You get sued for doing something, or not doing something. The contract supposedly spells out what both parties are going to do. If the contract spells out something that violates a law, and something goes wrong, you are then in the soup.

And there is never a problem until there is a problem. You can do lots of deals and not run into an issue, even if your contract violates all kinds of local laws. But the minute there is a issue, and the other party engages an attorney, that is when the issues arise if you have violated the law, or if your other party decides they weren't treated properly.

One bad deal can wipe out the profit from dozens of others. Or your life savings. Spend the money, have your contracts reviewed.

But it sounds like you have convinced yourself that it's not necessary. Remember, there's not a problem until there is a problem.

It sounds as if they are talking about buying tax liens. The Municipality that collects property taxes liens the property if the taxes aren't paid. If they need the revenue, they will sometimes sell the liens to investors. The investors collect the interest and can foreclose on the property subject to state laws.

Or sometimes, depending on state laws, the municipality forecloses on the property for back taxes, and then sells the deed.

There is a category here on BP about cash flows that includes tax lien info, and you can do a google search for tax liens and get lots of information. Then research the laws in your state to see if the strategy is feasible in your locale.

It's very state specific. For example, in New Hampshire, there is a statute that requires that the property can only go back to the government, not to a 3rd party.

Maybe it was a labor of love, purchased by someone in the area who loved the house, and now has to move. It doesn't look like a good real estate investment, and is full of period pieces of furniture.

And given the population of McGill, they have an uphill road ahead.

There are two separate issues here.

First, typically the laws -when you rent to someone in your own home- are more favorable to the landlord. You can simply notify the tenant of their non-compliance with the terms, and begin eviction. In New Hampshire, the Fair Housing laws don't even apply to selection of a tenant if the space is in your own home. You don't mention your state, so you should check with an attorney who works with landlord tenant issues to be sure of where you stand.

But the second issue is this: You have tolerated this bad behavior since the beginning. From your description, the tenant has been in control all along. When you allow the behavior to continue and don't insist on payment for damages, or require adherance to policy, then you are saying you are ok with it.

You definitely don't have to allow him to stay, but you'll have to notify him appropriately. And you don't have to wait to the end of the term of the lease since he has violated the terms of the agreement. But you'll have to do it properly depending on the laws in your state. This will make sure that he doesn't have any grounds to win in court. But again, since the rental is in your house, you should have no problem.

Stop allowing this and take control and get rid of him.

I can't speak to the effectiveness of adding to the MLS listing, although I would think that it would help, not hurt.

But before you do that, check with an attorney familiar with private lending. The SAFE act passed in 2009 mandated that each state pass a law at least as restrictive as the federal version. The SAFE act addresses licensing of lenders, and depending on the state, it can required any residential lender to have a license, even for financing your own properties.

Yes, I know it doesn't make sense, but it's true. In Massachusetts, you must have a license to lend to a homeowner even if you own the property. New Hampshire is amending it's SAFE act to allow 3 transactions per year without a license. And these licenses are restrictive and expensive.

So your individual state law will control what you are able to do.

First Bank Illinois finances tax lien portfolios starting at 2 Million. Mike McCann is the contact

Jon and Bryan are right on. The hard money extensions are cheaper than refinancing. You should complete the rehab QUICKLY, like right away, and list the property ASAP. Price it BELOW market, move it quickly, take your profit and move on.

The second biggest cost that sinks rehab projects is continuing carry costs, and that includes hard money fees. Time is truly money. Stop thinking refi and start thinking finish and sell. Don't give yourself the "out" of refinancing, because it will suck the profit out of the deal.

From the hard money perspective, they would rather you paid them off quickly and they got their money back, than extend over and over again and eventually sink into foreclosure.