All Forum Posts by: Account Closed

Maybe you can get your HML to pool your friends money into that 20% second, then you don't have worry about any of these details. I don't think a respectable HML would do that loan. This sounds like a risky deal to me. What are you going to do if the rehab costs more, takes longer or doesn't sell for as much as you planned, or some unexpected cost pops up? Do you have reserves?

This only applies to California, I see that is where you are from.  My attorney told me a loan is a security but is exempt from security laws if you keep it to one loan with one lender, the interest rate below usury (10%), the lender does less than 8 of these in any one year, and you (the borrower) are the issuer of the security and as such need to file this form with the CA Department of Corporations if the lender is not an accredited investor. This only applies to business purpose loans, which a fix and flip most likely is, if it's not a business purpose loan there are added regulations (RESPA, TILA, SAFE, DF, etc).  She also said every loan in California has to be originated by a licensed broker, but I'm not sure every lawyer would agree with that.

I would be careful taking advice from a public blog like this, lending laws are complicated and have changed dramatically post crash.  I'm not a lawyer and this is not legal advice.

OP: IMO, it's the degree that matters, not the knowledge.  Knowledge matters but you don't need a degree to get it.  I've spoken to two MBA graduates, one from Wharton and the other from Harvard.  Both say the same thing, education didn't help them much but the networking as a result of the Ivy League schools help them tremendously.  Personally, I'm at a point where I'm starting to raise money for RE projects.  I can tell my degree matters, it's in engineering, people don't seem to care that the degree is irrelevant to real estate, only that I have a degree, I hear it in their comments and in their tone.

@K. 

@Account Closed undefined

As wonderful as programs like Blue & Gold are, it's the middle class that suffers.  Family's that make over $80k in CA can't afford to send their children to a UC or Cal State, yet they are forced to pay taxes that fund these programs.  $80k may seem like a lot to non-californian's but it's not enough to put food on the family table AND put kids through college.  The article you referenced says "In fact, the group that is most disadvantaged by our current admissions policies are working-class ...".  He was referring to the fact that only children of the rich, of all races, can afford Ivy League.  I would add that the working-class are further disadvantaged by the fact that they have to pay for the low income folks here in Ca.  I'm not arguing right or wrong here, only that there are two sides to the story of a free education.  Regarding community colleges being cheap or nearly free, it's actually better than free, many students get paid to go to CC, not just tuition and books, but living expenses as well.  I could go on about the abuse of the that money but won't as I'm too close to the topic to speak rationally. 

 It wasn't a joke. I really feel that way. I can't say I've ever cut a check but I've gone above and beyond. I once bought a pre-foreclosure where I really felt for the seller, I gave them a seller carryback note and stored a bunch of their stuff when I didn't have to. It's an unusual situation but it can happen. I totally believe your story, not only is it fair, it's good business.

If after you resell you still feel there is a moral issue simply send them a check.  Chances are your profit won't be as much as you thought ... if it is, great, cut them a check with a nice little note.

I've used Smartmove available through this site a couple times now.  Prospective tenant's SSN remains private, landlord doesn't know.  The system comes back with a yes/no/maybe kind of suggestion to the landlord.  If it says no, you have it seems to me a legitimate basis for saying no ... hey, your credit report said no, not me.  I like it because it's a uniform non-discriminatory way of qualifying a tenant.  

@Chris Martin 

Interesting. The effective date is 1/17/13, it doesn't say what it was prior to that date. The requirement wrt trusts seems to be little more than trustor, trustee and beneficiary must be the same natural person at the time of origination, leaving the door open to switch that all around post origination (read creative REI), if I'm reading it right.

Of course, these are Fannie/Freddie guidelines, it's not to say originators that sell to Fannie/Freddie can't 'overlay' their own more restrictive guidelines.  It's also not to say a title company can't refuse to insure title.

I suppose you can use any formula you want but I'm pretty sure 'ARV x .7 - cost of repairs' is more generally accepted. The 'expected profit' is built into the 30% equity after repairs are completed.

Okay, now I'm awake, and did a little research:)

There's a FHA Case No. indenture on the Deed of Trust ... I'm looking at one now ... easy answer.

I give up, how?