All Forum Posts by: Bill Leonard

We at Intrepid Investing are requesting your input.

We have successfully trialed our proprietary Notice of Default (NOD) service at the County level. Nothing to sell at this point. Will use BP Marketplace if we get to that point.

To our knowledge Intrepid is the first and only company that has a working solution to extract, filter, and verify NOD data (after Pre-NOD/Pre-Foreclosure and before Auction/Sale) when it is first available from County departments.

We want to know whether there is enough investor interest to warrant continued time and effort on our part to extend development of our proprietary NOD service to other Counties around the country.

As investors, we all seek advantage over the other guy when it comes to contacting distressed owners with a solution to their problem.  The Notice of Default time interval has been poorly served with dated information. Unless someone treks down to the County office each day to pull NOD Grantee names, addresses, and other info, it is difficult to contact a distressed owner right after he/she has officially received a Notice of Default from the County. Yet this is often a critical time interval where that owner is looking for a solution to his/her problem.

Our 30 years of programming background has now allowed us to push out by email each day a fresh NOD data file including names, addresses, phone numbers (where available), and prepopulated mailing labels ready for printing with a couple of clicks. Text messaging of the Grantee address is on the horizon as another value-add.

This quick notice NOD data can be the difference between closing a deal or losing the deal to some other investor who managed to contact the owner first in this key time interval before Auction/Sale.

Can we provide this service to all 3000+ U.S. Counties? No. Some Counties thwart access to key NOD data that an investor needs. There are other Counties that don't have a State reqt to publish Notices of Default.

Please take a moment to give us your feedback on the above and let us know if the benefits from having such a service available merits more time and attention on our part.  Thanks!

Hello,

I am Todd.  Bill and I are partners using one account.

I am currently in NJ, but want to move to the Chicago western suburbs within about 30 minutes of Oak Park.  I would like to move as soon as possible.

• I would like to either rent or lease option a property within 30 minutes of Oak Park, Il - to the west not towards Chicago.
• I prefer an SFR or mother-in-law cottage arrangement.
• I have a budget of about $1500/mo.
• I would prefer 1000+ sf and a 3/2.

• I have a 25 lb dog, terrier mix, fully housebroken, 14 years old, pretty quiet.
• I am moving to restart my real estate investment business.
• I have savings that will last the year, but no W2 or 1099 income at this time.

If anyone has or knows of a property that I could get into, please let me know by either responding here or mailing me at [email protected]

Thanks for you help,

Todd

Thanks to all that have posted. Your comments and suggestions are appreciated. We passed on the oppty mentioned earlier and others like it since the original post. Now being a bit wiser, we had established our own criteria for the occasional gap funding request that comes our way that is coincidentally in keeping with some of the LTV suggestions above. We are very comfortable with our criteria and have supplied gap funding on one deal already. Expected gap funding return on this 2/1 scrape and expansion to 5/3 on a large lot in a very desired area in Atlanta is 30%+.

Hello,

I have a Residential Redevelopment JV document that needs to be reviewed. I am looking for a reputable and reasonable attorney in the Atlanta, GA area to review the document, since that is the location of the property. The closing is scheduled for March 25, 2016, so I would need quick turn-around as well.

Any and all suggestions are appreciated,

Bill

James, thanks for your input.  Always appreciated.

Crystal, well stated!  Thanks for your comments.

My stepson is likely moving to the Chicago area in the next couple of months on another assignment.  Would you be willing to connect with him?  Perhaps the two of you can created a win-win downstream.  I can have him contact you by phone if you give me your OK. 

Thanks for everyone's comments.  Obviously we knew a 12-month balloon note and no payments until sold were nonstarters.  It actually made us smile when we read that part in the terms.  I don't fault any proposal for asking - great deal for the requester if he can get it, right?

Ideally on the private money side, we would love to rinse and repeat every 3 months with the same money with a 16-20% annualized return or better, but I did not want to influence the comments from this group.  Yes, there are certainly other areas to invest with less risk than 2nd position behind hard money as proposed in this deal.

Anyway this Private Lending post (only my 2nd) has proven to me that responders like yourselves, however you choose to phrase your comments, do care about others in the BP community.  Your hands-on experience and advice so others don't make foolish mistakes are much appreciated!

Will try to be brief.  My stepson has done very well for himself over the past couple of decades, has set a very healthy amount of funds aside, formed a RE investment company, and structured it properly to access the funds.  He has invested in his RE education and has bought and sold his own residence only.  I am helping him form his team of investor friendly realtors, wholesalers, hard and private money lenders, contractors, attorney, and so on.

The following proposal has been presented to him from an associate with a solid track record of 9 successful hard money deals with private money gap funding in GA on single family properties in the past 12 months.  We are impressed with this person's success and knowledge, know him to be a stand up guy (he has contractor background too), and see a win-win for both parties with future deals and lead exchange downstream.

The funding scenario is . . .

80% Hard Money with 20% Private Lender Gap Financing

• 1st Position Loan Amount
  • 80% Hard Money for Purchase and Rehab
  • Financial Requirement - $144,000
  • Use of Funds - 80% Purchase and 100% Rehab
  • Lender to be Recorded as 1st Position Lien Holder
  • Lender Holds Back Construction Funds and Drawn Upon as Needed.
• 2nd Position Private Lender Loan Amount
  • 20% Private Money for Purchase and Carry Costs
  • Financial Requirement - $35,000
  • Use of Funds - 20% Purchase, Closing and Carry Costs for 1st Position Loan
  • Terms
  • Lender to be recorded as 2nd position lien holder on title filing
  • 12-month balloon note with no prepayment penalty
  • 2 points and 10% annualized interest
  • Principal, Points and Interest to be repaid at retail sale of the property

My stepson is well aware his 2nd position can be extinguished if things go south.  He does not want 1st position as a private lender at this point in time although he can handle the dollars.  That may change later.  He intends for his own private lending to be a smaller part of his overall RE investments.  Gap funding behind a reputable and solid hard money lender (he appreciates their criteria) has some appeal to him.  His gap funding is contingent on the hard money lender commitment.

Here's the question (sorry it took so long to get here).  How reasonable and equitable is what is being proposed above for a 2nd position private lender?  I have my thoughts on terms and payment time frames, but I would like to hear from some experienced individuals in this area.  Any thoughts on docs that absolutely need to be signed as part of this transaction are welcomed as well.

Thanks in advance for your insights.

Two thumbs up!  Good for you,

BL