All Forum Posts by: Account Closed

@Rob Cee 

You can have a business purpose loan that is secured by a OO property, conversely, you can have a consumer purpose loan that is secured by a NOO property. Occupancy has very little to do with consumer vs business purpose loans.

Or, how about, originating broker confirms good insurance at origination, borrower transfers title without informing lender or originating broker, and without naming new owner as primary insured on hazard insurance policy, property burns to the ground, insurance carrier denies claim because named insured no longer owns the property.

@David Mora 

Using BP's flip analyzer, assuming no loan costs, reasonable holding & sales costs, rehab 10% more than 150,000 and resale 10% less than $1.5m, it shows ROI of 4.3%:

@Rob Cee 

We'll see what Ellis says, but it's doubtful this went through a title/escrow closing ... if it did lender would have a claim against both title and escrow.  I get lender instructions signed by both escrow officer and title officer that all these things are in order.

Anybody the funds 6 figures without going through a formal closing is, well ... I don't know what to say!

Sorry to be the sour grape, but if your estimate of ARV is only 10% high and the rehab cost estimate is only 10% low my calculator shows a profit of only 5%, this assumes a 6 mo holding period and NO loan costs. Believe me, it's not unheard of for rehabber estimates of ARV to be a little high and rehab cost estimates to be a little low!

Now if the estimate of ARV is way low and the estimate of rehab costs is way high, that's another story.

You need to know the story behind the story to really know if this is a good deal.

 The matrix does not involve NRA or CAR rules.  The matrix cites federal laws (RESPA) and State laws (Business & Professions code and Civil Code) as basis for their conclusions.

I'm not a realtor by the way, my realtor is sharing this info with me as her "individual client".

 That's how I read it.

Okay, Joe, you made me go back and look, lol ... at the bottom of the article it says: 

"Permission is granted to C.A.R. members to reprint this material in hardcopy or PDF format only for personal use or with individual clients. This material may not be used or reproduced for commercial purposes. Other reproduction or use is strictly prohibited without the express written permission of the C.A.R Legal Department. All rights reserved."

I take that as a do not post :)

@Will F. 

I would if I could.  You need to be a CAR member see the link.  I would reprint it here but I'm afraid it would be some kind of a copyright violation.  Maybe it is, maybe it isn't, I don't know and don't want to find out.

In my state you can have up to 10 lenders on the same note, all in first position.  It's called a fractionalized or multi-lender loan.  It's an exception to securities laws regulated by the state Bureau of Real Estate originated by a broker.