All Forum Posts by: Account Closed

I've noticed these trustee's sale bidding services popping up lately. Has anybody had any experience with them, good or bad? It seems like a real time saver.

I think it should be a two way street. Lenders effectively lock jump by delaying funding, as you pointed out, borrower should be able to do the same. Similarly, when buying an REO banks often want a daily penalty for not closing on time, that should be a two way street also, if they can't close on time (THEIR escrow can't get off the dime, bank can't figure out how do sign the transfer deed) they should pay the same per diem.

Good analysis Scott. I would assume at 50/50 profit split with the money partner (MP), as you did, but that the MP brings all the money to the table, not just acquisition costs. The Rehaber brings the deal and project management. This would strengthen your conclusion, that the HML scenario brings a better return, and the MP scenario brings less risk, better cash-on-cash, less lost opportunity.
I guess a good companion question would be what the MP/HML assumptions should be. The answer to that would probably be all over the board. I would think it rare (and unfair)that a MP would be satisfied with a 8% return when coming up with all the cash.

I'm curious what people think. I'm sure it depends on the money partner split, HML costs, etc. I think, generally speaking, you are going to end up putting less money in your pocket with a money partner than if you used hard money on your rehabe deal. Any thoughts?

I needed to wall off a laundry area in a rehab I was doing so I called on the handyman ads in the pennysaver. I made several calls and finally found somebody to do the work. One of the contractors that I left a message for but never talked to actually returned my call yesterday, he was looking for work.

Not an uncommon scenario, except that I left the phone message in 2006!!

The California Business and Professions code defines a broker like this:
Broker Defined
10131. A real estate broker within the meaning of this part is a person who, for a compensation or in expectation of a compensation, regardless of the form or time of payment, does or negotiates to do one or more of the following acts for another or others:
(a) Sells or offers to sell, buys or offers to buy, solicits prospective sellers or purchasers of, solicits or obtains listings of, or negotiates the purchase, sale or exchange of real property or a business opportunity....

So, if there is no compensation and no expectation of compensation, you are not a broker, by definition.

Just a thought: If I had a small BofA account, no loans, no large deposits and used them for ATM transactions, small deposits, small checks, etc., maybe that would cost them more than if I withdrew everything. The idea being that these little items are loss leaders for mortgages, big savings deposits and the like.

It would have to have a cheery, helpful teller and branch manager of course.

Of course title can't sign a recon. However, I have had title remove a lien as an exception on a prelim with evidence of payoff, and the deal went forward. But it sounds like you pursued this angle, sorry it didn't work.

I had an issue with B of A back in the 90's, never done business with them since.

There has been discussions about this before. My understanding is that if the loan was actually made (money transferred) there is no problem. The potential fraud comes when the mortgage is recorded without an actual loan being made. Having said that, banks make HELOC loans all the time without an initial draw. I guess it comes down to your intent if it ever gets to a court.

Will: Regarding the unrecorded recon, banks and title companies are notorious for not recording recons. I know you have it resolved at this point, but did you try to contact the purchase title/escrow? They should have the payoff demand and the payoff wire, that, it would seem, should be enough for the new title company to clear the lien.