All Forum Posts by: David M.

oh yeah, and of course, you need to find an attorney that specializes in Notes to properly prepare the documentation

@Wang Windy

You might chat with @beth Johnson (look up Lend2Live) about how to do private lending.  That's basically seller financing as the seller.

The Note and the Deed of Trust will secure your lien position in case your buyers later default.  You'll also want to use a third party servicer to service the loan.  They will accept the payments and transfer to you, as well as handle the paperwork (e.g. yearly 1099's, payoff statement when time comes, etc.).  Also, in the case of a default, the third party will be helpful in court to show non-payment.

Its pretty typical to get Title Insurance.  There is a portion for the buyer and a portion of the lender (I've always assumed its since the lender has a interest in a portion of the equity).  Its generally advised for the buyer to get Title insurance to protect the chain of Title.  The lender always requires it for the same reason --- what's the point of using real property as collateral if you aren't sure that the Title is secure.

Hope this helps.  Happy to chat.  Good luck.

@Courtney Mercier

If the current str is that good, then best to access the equity through a cash out refi / hloc.  You need to evaluate how the additional interest expense will impact your cashflow.  Still, if it needs constant reno/repairs, just make sure its worth it and you've run your numbers properly.

Yes, it really depends on what sort of life you want to lead, aswell as your investing strategy and goals:

Just assuming that half your gross income goes to str related expenses and maintenance/renos, your yield on equity is about 6.9%.  Assuming its free and clear --- no idea.  Just something to consider is take that equity and do private lending for 12%.  It can be extremely passive when you use a matchmaker/broker.  That's part of my pivot to passive income investing.

Private lending's high yield can be good for both income and growth investment goals.  But, it definitely depends on your goals.

Hope this helps.  Happy to chat.  Good luck.

@Steve K. Any chance you've got a link to the court doc?

@V.G Jason

tech based brokers have been trying to do that.  Didn't Redfin bring on this suit?  They think that a salaried group of agents at a call center with fixed fee agents on the ground that don't interact with the buyers will work.

However, I haven't heard much about Redfin making tons of money.  Also, those "doorpeople" aren't doing the profession any good, at least the ones I saw.  I think it will appeal to a certaingroup of people.  Those that perhaps like interacting with faceless agents at a call center and don't want to interact with an agent face to face.  Maybe those who are trying to "save some money" either because they are experienced or even new.

The ala carte model will be interesting...  Of course, by the hour will be fruitless.  Maybe fixed fee type commissions??  Lets face it, aren't most sales compensated on percentage commissions?

@Bryant Brislin I think what you describe that you are doing is HOPEFULLY somewhere along the lines of that distressed home consultant is doing.  Somebody has to help these people through their difficult situation.

@Bill B. at least for my understanding in my parts, they are all called a foreclosure. Doesn't matter if the municipality for property taxes or utilities (usually water or perhaps sewer), lender for a mortgage, or even a condo association for HOA dues...

As for the OP, I'm not sure I understand all of this since I don't do it.  I certainly understand how the elderly can be taken advantage of as its mentioned many times about how they are targeted for any number of scams / swindling.  Maybe this guy had other options, perhaps such as listing that might have benefitted him with extra cash/equity.

I think one aspect to keep in mind, as I understand it so far, is that "business as usual" can still continue. You just can't advertise the broker comp on the MLS. Sellers can still offer a broker comp.

More significantly in my mind, not necessarily more important, is the genesis of the lawsuit. Wasn't it by Redfin? Redfin and others are trying to disrupt the industry, for better or worse, with a new business model. However, the "restrictions placed by NAR" hampered that.

I recall one company tried doing that with not offering an broker comp. The listings were not found on the MLS, and I think i had to basically call and 800 number to coordinate the showing which was slightly interesting since they didn't / couldn't have MLS lockboxes (in NJ we have electronic/satellite tracked boxes).

So, Redfin still believes that their "national call center of salary agents" with "pay the showings local agents" is better, not sure in what sense (probably for THEIR profit margins), than the current system.

This continued trend to non-person-to-person transaction system might appeal to the younger generations, but I think they will find it lacking if given the chance.  However, as most people only do a few transactions in their life, they might be fine going the "cheapest way possible" and just continue thinking poorly of the real estate profession.

Just my two cents...

@Leo Maldonado try to keep learning.  Honestly, I've found some of the best education isn't paid for...  Good luck.

@Stephen Dispensa If I understand you correctly, by fragmenting you also want to "...business as it has been effectively done," i.e. business as usual?  From my layman's understanding, there is as court case that shows that "business as usual" isn't allowable/legal