All Forum Posts by: Bryan Hartlen

@hen ley you should also make sure you are recording your loans as leins against the property.

First of all, thank you to everyone that has chimed in with experience and insights.  I would appreciate your views on the last question:

As note investors, does a QCD vs SWD affect what you'd be willing to pay for a performing note (assume that it has at least 6 months seasoning)?

@Chad U. we tried a cash for cancellation offer.  We weren’t able to locate directly so we approached through her BK13 trustee.  She declined. Makes no sense - she vacated properties and had an opportunity to get something rather than nothing??

@Ken V. SWD is the farthest we’d go. We’re thinking of dropping back to QCD to further protect against any claims.

Property is in AL.  CFDs not regulated but in general considered to ‘be messy’.  

We purchased the CFD under a special warranty deed.

Thanks for your input.

Title is clean but we didn't complete an ejectment. Our lawyer is advising that there's a slim possibility the previous payor could come back claiming equitable interest. He suggested we use Quick Claim Deed to mitigate.

We're trying to determine how that might affect the resale value of the new note.

One of our CFDs is now an REO and we have a buyer that we're going to seller finance the property to.

It was a CFD (we have clean title), it's been vacant for a few months and we're selling without a judicial foreclosure / ejectment. We're thinking that we'll write a mortgage (not a CFD) and convey title by Quit Claim deed rather than a Special Warranty Deed (just in case). Our business model is to resell the new performing note in 6 - 12 months.

As note investors, would the QCD vs SWD affect what you'd be willing to pay for a performing note (assume that it has at least 6 months seasoning).

Thanks.

Hi all. One of our Birmingham CFDs is now an REO and we have a buyer that we're going to seller finance the property to.

• It was a CFD (we have clean title), its been vacant for a few months and we're selling without a judicial foreclosure / ejectment. We're thinking that we'll sell with Quit Claim deed rather than a Special Warranty Deed. Our business model is to resell the new performing note in 6 - 12 months. As note investors, would the QCD vs SWD affect what you'd be willing to pay for a performing note.

• Anyone have a recommendation of an attorney or firm that can handle our closing? We typically use a template purchase agreement, note & mortgage. We have local counsel review to make sure it's consistent with the local jurisdiction and handle filing.

• Does anyone know if Alabama requires us to be registered as an out of state LLC in order to close the sale?

As always, thank you for your insights!

@Chris Seveney, @Bob Malecki & @Don Konipol:  Thanks... I think we're pretty close (other than TX which looks real appealing).  We target midwest states for the most part and don't invest in long judicial states like NJ or NY.  We also budget servicing, taxes, insurance, etc. as a separate line items.  

Can I add a second question to this thread? Besides the worst case; What does everyone typically budget for FC costs?  We budget $5k for notes and $3k for CFDs.

@Chris Seveney what drove it to $20k.  I’m assuming it was contested but there’s got to be more than that?