All Forum Posts by: Account Closed

if you get checks in powers of 2 ($1k, 2k, 4k, 8k, 16k, 32k, 64k ...) you will have the exact amount within $1k. For example, if the final bid is $19k, you give them 16k+2k+1k. it works out mathematically that with the right combination of checks you can always get within $1k of the bid. this is to avoid giving them way too much and waiting for change.

Jon: i'm mostly interested in CA so i don't want to ask you to dig through your papers for a title co local to CO. I'm intrigued by the idea that you can get title insurance at all, anywhere.

Will: do you know of any title co in CA that will insure a trustee's deed? I know you can get insurance after the trustee sale but it wouldn't cover any title defects that existed at the time of sale...not sure what it does cover. that would insure position of foreclosing lien, for example.

I didn't know you could get title ins on a auction property. Do you know what title company? Seems like there would be a lot more lenders willing to lend if insurance is truly available.

Michael: When you bought the property YOU provided the title company with an operating agreement showing YOU as member of the LLC, and they issued title insurance based on that. YOU might be the agent for service showing on the secretary of state's website, if not you, your agent for service will have records of you as owner. All the money flow for rehab/maintenance/management comes from a bank account showing your name.

It would be a pretty hard sell for your attorney to claim ownership with such a big trail showing your involvement. If your heirs are totally in the dark about your activities that could be a problem. You should have some records your heirs (or their attorney) could pick up and figure out what's going on.

This is always a fun topic :-)

I challenge anybody to show me the law in CA that requires a real estate licensee to disclose their license status when acting strictly for their own account. I'm talking about a law, or Department of Real Estate (DRE) regulation. The National Association of Realtors (NAR) may have some rule along these lines but they are not law, they are a private organization that a licensee may or may not join, as they choose.

When you are acting in the capacity of the license, ie, as an agent for another, it's a totally different story. But, when acting solely as a buyer or seller, distressed property or not, there is no law that requires any disclosure that I have ever seen. Actually, I believe that if you do disclose and don't do it properly you could lead a buyer or seller to think you are their agent, thereby creating a fiduciary relationship, then you do have some serious obligations.

Rich: I read St George took the brunt of nuclear fallout from Nevada above ground testing some years back, does that bother residences or affect home sales at all?

Chris: do you know if it's possible to borrow against your portfolio if it's an IRA portfolio?

My insurance agent tells me even if the llc wasn't named on the policy a big company like Farmers or State Farm would pay, but it's best to get the LLC named somewhere. Insurance agents aren't always right so it's good to cross check these things.

re charging order. how about bringing the additional 1% on if/when there is a lawsuit, you can usually tell when it is coming and even if not add the other person when it happens, as long as it's for a valid business purpose I would think it okay to add after the claim is filed. Taxes are simpler with just one person and you don't have added complexity through the years for something that may never happen. Just my non-attorney thoughts.

Mitch: From your atty conversation, does it make any difference if the LLC is the insured or the additional insured? I see situations where the individual is insured and the LLC is the additional insured, i don't know why, I'm wondering if maybe it's more expensive to insure an LLC thus the funny arrangement.

I was just talking with a guy that bought a BofA REO all cash. He knew about the 60 day ban on reselling and was okay with that, it takes at least that long to rehab. His plan was to refinance immediately so he could leverage his cash and buy another rehab. Right after closing he was told not only could he not resell within 60 days but he could also not refinance during that period. Has anybody else had this experience? The no refinance within 60 days was a surprise to me.