All Forum Posts by: Archie Knuckles

Good point. Heck they might be behind on the mortgage too, who knows. I'm putting them on a mailing campaign, we'll see what happens. I'm strongly considering taking one of my pre-foreclosure letters and customizing it for HOA delinquency and sending that.

A friend referred a lead to me, owner is behind on HOA dues. The HOA is considering foreclosure, property located in Maryland. I only have the aforementioned info and the address as of right now.

I'm experienced with bank foreclosures/short sales etc but not HOAs. 

How do HOA foreclosures differ from banks as it relates to what we do? And what course of action would you recommend?

I see what you're saying re: acting as a mortgage broker. The private loan would have to be guaranteed by someone and it should be me; if it's in anyone else's name I've effectively brokered a mortgage transaction without a license. With that in mind I'd be better served staying in the deal as the intermediary instead of assigning it. I wouldn't have a problem doing that.

Are you saying do something along the lines of a straight Option agreement at price A then retail it at price B and pocket the difference? With all this equity, that exit strategy did indeed jump out at me, however the seller is asking retail or close to it. But if I missed your point my apology, feel free to expound.

Really appreciate the insight. Your mortgage broker tip really made me think!

Hi Jon, thanks for the feedback.

I intend to structure this as an agreement for deed or wrap or some similar device. Yes my cut would be some or all of the down payment. My intention is to market the deal to owner-occupants during escrow, all parties cooperatively choose the best buyer, and close the entire transaction simultaneously. I'm not looking to close on it personally, just put it together and assign it like a wholesale deal.

Oh no, I'm not doing a personal guarantee at all...the buyer will. I'll be assigning the entire deal, and if need be I'll have my attorney draw up a nominee agreement to ensure I'm completely out of the transaction once it closes. The seller will have a forecloseable instrument (agreement for deed, wrap, etc).

Bingo...exactly what I intend to do!

- ARV $350k
- Owes $85k
- Asking retail price
- Seller will consider taking his equity in monthly installments as long as I pay off his underlying loan at closing
- Condition: good, ready to sell
- GREAT highly-desirable area

I'm thinking pay off his underlying loan with private money and simply create a 2nd position note to the seller for his equity.

Since he wants retail this wouldn't be a good one for me to hold, but I'm thinking why not put the deal together and simply assign it to an owner occupant for a down payment/assignment fee. I.E. a "mortgage assignment." The buyer's monthly payment would go to the seller and private lender in a split.

I'm not a big proponent of mortgage assignments but if it's legal and I disclose EVERYTHING to EVERYONE why not.

Any thoughts?

@Mike - NICE...lol

@Chris - I don't know much about mobile home investing but fundamentally I tend to agree with Karen. The biggest difference between stock investing and real estate is control. With the stock market you have virtually no (legal) control over which direction a security goes. You can only hedge your bets with option strategies. Too many variables out of your control. In many ways it is much more similar to gambling than real estate, unless one's real estate strategy relies purely on speculation.

At least with real estate you can make your money when you buy, and you have some level of control over the value of the investment (repairs/improvements, financing, redevelopment, etc). In any case you'll need to learn what you're doing so you'll be relying on someone to guide and/or educate you either way so that's sort of a moot point.

I agree with you that there's always risk with any investment. IMO it boils down to the level of control.

Land development and/or self storage...