All Forum Posts by: Paul Choate

@Todd G.

Generally you will show up and there are one or two of us standing around awkwardly asking each other and random strangers if we/they are here for the BP Meet up. I like to think of this time as an ice breaker! If you are late, we will generally have been seated and you should just ask for the real estate group. 

There is no format so far (this is the 6th one). We usually introduce ourselves and tell a little bit about where we are in the investing spectrum and what we are working on. Feel free to let everyone know what you are looking for out of this group. Since we have had a lot of turnover, we usually just let the intros guide the discussion. If there is 5-6 people the discussion generally stays a group thing. I have noticed that when there are more, everyone tends to speak to those closest to them because it is in an open restaurant and it is hard for everyone to hear. It will be nice to get a better space. With eating, there is not much time for anything else.

This is very informal and there is no presentation or expectation of anyone to do anything. You are welcome to sit back and listen or ask/answer questions as you feel comfortable. I am not the "leader" and it is not my group. There is no right or wrong other than I feel there is a certain spirit to BP and I want to maintain that in the group. I am not interested in buying any programs or coaching and I don't sell anything. I believe most of the group agrees with that sentiment. Everyone is (so far) an adult and you are welcome to buy/sell etc from the relationships you form here.

Just so you know (and anyone else who cares) I do this because it is motivating for me and provides me a forum to seek new ideas and understand the local market. I believe someday I can find partners and capital investors as this group grows. I am very turned off by the sales pitcheness of other groups and I am not interested in joining one of them or creating one. However, I have found BP to be an amazing resource and has taken my knowledge 10X!!!!! The individuals coming so far have been an amazing combination of experienced and just starting out and I leave the meetings fired up.

If you have any other questions let me know.

(Edited to make it clear- I have no problem with anyone coming with the purpose of making money. I hope we are all here for that reason. Everyone should be above the board on what they are doing.)

http://www.biggerpockets.com/forums/521/topics/213...

I have finally posted it. Sorry for the delays.

When: 7/28/2015 at 12 pm. 4th Tuesday of the month.

Where: Casa De Los Milagros Mexican Restaurant and Cantina, 5111 N. Classen Blvd., OKC, 73118.

Everyone is welcome. The only cost is your lunch if you chose to eat.

NOTE: Please bring ideas for a better meeting location. I am running behind as always :)! I did not get to look into the suggestions from last month.

This is a networking event. We are having lunch and sharing our current projects, successes and struggles. There is no speaker or expectation of participation on anyone's part. Please come and listen or ask questions. We have had some very good discussions about the local market and activities of the local investing community.

Please let me know if you have any questions. Please let me know if you are coming so I can have a rough head count. Please come anyway if your schedule opens up and you did not tell me!

Keywords- Oklahoma City, Norman, Midwest City, Yukon, Edmond, Mustang

@Rhett Tullis

@JJ Gritts

@Faye Herl

@Deborah Burian

Please pass the word!

I would start with the financing. It's all about the terms.

How much do they want down? What is the interest rate and amortization period? What is the payment? What are their requirements to qualify for the financing? 

With owner financing, you can over pay for a property if the terms allow the income to cover these three points: 

1. Pay back the loan

2. Cover ALL the expenses

3. Pay you for the trouble

The problems come when you can not do all of these.

Others might suggest you get the numbers together on the building before you worry about the financing. I am assuming you are trying to cash flow the property. Will the rents make the payment, cover expenses and allow you to put back sufficient amounts for cap ex? If not, do you have a reserve or income to cover any shortfalls? If the payment can not cover the costs then you are counting on appreciation. If the note is a non-recourse note (they can't sue you personally if you don't pay) then you can take a chance on it without losing more than your investment of time and money. Whatever that may be. 

I love owner financing. Just make sure you get your numbers right!

July the 28th @ noon. I am working on the venue. I will get it posted in the next few days. If anyone has any suggestions, there is a post under the Network tab for Oklahoma City Meet up where others were discussing it.

As @Rhett Tullissaid, it is not anyone's group. There are no fees besides the cost of your own lunch. No one is selling anything and I think most of us would be pretty hostile to that sort of thing. Everyone is welcome!

@Roy N.I am a bankruptcy attorney in okc, Oklahoma. (Tinker AFB is next door) I have service members who have to file for bankruptcy to keep their security clearances. Post bankruptcy, you have no debt, generally the same assets and the same income. The pressure from debt is the problem. Just FYI. 

Check these with your attorney but he can add you as an owner by deeding the property to both of you (we call it tenants in common) or as @Eric TaitSuggested, create a new legal entity to hold the property. Your llc member agreement and operating agreement will protect you and control the property. Make sure to use an attorney to set it up. 

Last thought is to get an option to purchase which should allow you to force a sale. Check with your attorney to make sure they are enforceable.

He needs to find out where he is at right now. Have him pull his credit reports at www.annualcreditreport.com and pay for a credit score from one of the credit bureaus (reports are free- credit scores are less than $10).

He might be pleasantly surprised. Most of my bankruptcy clients are between 630-680 in a year or two of filing their cases. Credit scores primarily consist of how much debt he has and his payment history. Both should be great for him. The bankruptcy is a negative for 10 years but is a small percentage of his score. 

Make sure to dispute anything wrong on the reports which will also help his score. There should not be much left after 6-7 years. 

I don't have much advice for building credit. When you play with snakes you are more likely to get bit. (Courtesy of Dave Ramsey) If you have a healthy down payment and zero debt, you should be able to find a bank willing to finance real estate. 

I second what @Wayne Brookssaid. I am a bankruptcy attorney on the debtor's side. The main issue you want to avoid is violating the automatic stay of bankruptcy. As Wayne said, you need to make sure the stay was lifted in the bankruptcy and then you are free of any restrictions imposed by the bankruptcy (or bankruptcies- they may be trying to play games with multiple filings). 

Timing is very important as bankruptcy filings can invalidate auction results if it was filed at the right time. I have filed 30 minutes before a sheriff's sale. The sale was held but it was legally void because of when I filed. I can't tell you when that is for your state as I do not know. They mentioned multiple filings and hearing dates and there are restrictions on how long the stay lasts for the 2nd and any other filings. It is important to get an attorney involved. Motions for relief from the stay can stop this tactic but just be sure what is going on. The hearing dates sound like this is an active process.

Getting title insurance will be a way to work all of this out as the title examiner will have to verify all of the proper steps were taken to get the property out of the bankruptcy and the foreclosure was also done correctly. A bankruptcy attorney can tell you in 30 minutes where it is at.

I would take threats of lawsuits against mortgage companies with a grain of salt. Most people who lose their homes are mad and the majority of the time it is for nonpayment. Not much a court will do with that. Bankruptcy is a different matter.

Good luck!

Start from the bankruptcy side. Ask the previous owner for the case number. If you have his name, you can look it up at www.pacer.gov. If there is a case number, you should get an attorney asap. The bank may have done what it needed to do to pull the property out of the bankruptcy but you do not want to make that determination on your own.